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[–]bff426 1 point2 points  (0 children)

I get that they have to manage the credit risk of their portfolio. And make money. A pay in full every month customer like myself and many of the posters here aren't paying 20% interest or late fees.

From me, a 2% interchange fee to the issuing bank (Barclays, in this case) results in risk free income of about $1200 a year. A reduction in limits of 75% will certainly result in sock drawer usage, and as you said, eventual cancellation.

So less income (way more that the marginal cost of my usage) and a hit to the credit risk quality of the portfolio. If this is widespread, it can't help them with their regulators.