Credit card issuers tightening requirements, raising fees

The Wall Street Journal reports that the big credit card issuers like Citigroup and Bank of America and Capital One are taking steps to limit their exposure to credit card debt. The steps they are taking include:

— Requiring higher credit scores before issuing new cards. On average credit card approval rates have dropped to 32% from 40% a year ago.

— Offering lower initial lines of credit to those who get cards.

— Limiting credit line increases or even reducing credit lines for existing customers.

Not only that but most of them are raising the hated late fees and other charges to offset what they see as an increased risk of losses.

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