Banks Are Cutting Down On Credit Card Limits

Banks Foil Borrowers Amid Credit Squeeze The net is closing for Britain’s borrowers as banks slash credit limits and turn away potential customers. The strategy, aimed at cutting costs incurred in servicing bad debt borrowers, highlights a UK credit crunch, also dubbed a liquidity crisis or credit squeeze. Barclay’s has reduced credit limits for 500,000 customers and will be monitoring its borrowers’ habits.