Allison was beside herself when she found out her credit card limit was suddenly dropped from $2,500 to just $300. She says "I contacted my credit card company and was told it's because I was late with some payments more than five years ago... on a different card!"
Allison is not alone as the majority of banks are tightening standards on credit cards and consumer loans.
Paying bills in full each month is the best defense. At least pay well over the minimum payment due, monthly, and only use 30% of your available credit.
Lowcards.com offers additional tips on staying in your lender's good graces.