Cuts in Credit Lines Have Minimally Impacted Credit Scores, FICO Says

A study by FICO, the company responsible for the widely used FICO credit scores, revealed that consumers’ credit scores have been only minimally impacted by the recent, widespread cut in consumer credit lines.

“Our study suggests that lenders are using a scalpel and not a hatchet to trim their revolving credit exposure and meet their requirements for regulatory capital,” said Dr. Mark Greene, CEO of FICO. “This bodes well for the economy if we are counting on empowered consumers to stimulate growth and help end this recession. Based on our findings, the fundamental rules of Wall Street and Main Street still prevail. Both lenders and consumers perform at their best when they maintain smart, responsible credit strategies.”