Card companies have been slashing credit limits for millions of accounts that remain open. About 40 percent of banks cut credit lines on existing accounts, according to the consultant TowerGroup, which estimated that such moves eliminated about $1 trillion in available credit. Much of that was unused, however, if it was your credit line that was cut, you may have lost your safety net.

Credit lines were frequently cut in regions most affected by the housing crisis and high unemployment, such as Florida and California, said Curt Beaudouin, a senior analyst at Moody’s Investors Service. “They’re not doing it willy nilly, they’re doing it systematically,” he said.  As such, it just shows that banks have a method in their madness.  If you are in one of these areas that are being greatly effected by the looming economic conditions, the banks are basically kicking you while you are down!

Another interesting insight is that Credit Card Companies are making fewer solicitations which is an indication of their change in market stragety. Mailed offers for new cards increased in the final three months of 2009 for the first time in two years, but there were only about 575 million. That’s about a third of the average number of quarterly offers from 2000 through 2008, according to Mintel.  Have you noticed less credit card mailers?