Use or lose your Credit Card

United States
November 10, 2009 11:30am CST
Just reading an interesting article about credit card companies who are cutting off peoples credit cards if they don't use them. It goes on to mention that one of the biggest problems of the recent financial crisis was that Americans were borrowing and spending money that they couldn't afford to pay back. The problem now is that as Americans are learning to save more and be more financially responsible, credit issuers are punishing them by cutting their credit cards off if they don't spend enough. For example one credit issuer (Chase) explains that inactive cards with large credit limits are a risk for fraudulent use. Almost all the major companies such as Bank of America, American Express, Citibank, and many others are suspending inactive credit cards. A major problem facing consumers is that cutting their credit cards is devastating to their credit scores. Now the situation is that both the consumers and lenders are both being more prudent, but this still creates problems for both consumers and lenders. If consumers aren't spending, then lenders aren't making money. Do any of you have any suggestions on how to deal with this credit issue?
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