Cut Credit

Can credit card companies lower your limit below your balance?

I just read an article on that money.com said that credit card companies are cutting credit limits in the storm of the credit crisis. They can reduce their limit below its equilibrium, thus making it be over the limit, charging fees, and damage to your credit score? For example, suppose you have a limit $ 2000 and a balance of $ 1100, and they cut the limit to $ 1000. Now you're at the limit of what is commonly added cause to get rates, increase their pace to the clouds, month, reducing the credit limit of $ 10,000 to $ 2000. Went from less than 5 credit available to be used 100% of credit used. Adversely affecting credit. If not passed before the month is up, then once you add the interest rate can hit with overlimit. So now you owes $ 990 on a card and cut the credit limit of $ 2,000 to $ 1,000. When you add the interest at the end of your billing period, you are over limit. I think I had almost all the cards out there at least for a short period of time and the only ones who have done that for me are A, and Citi. With Citi however, when discussed, they removed the post once and I just paid for the card much lower.

Cut Credit

Cut Credit