Could Your Credit Be Too Good?

Why lenders are punishing those who borrow too little and always pay on time

Illustration by Peter and Maria Hoey for TIME

If you pay your credit-card bills in full each month, you probably didn't take much notice when President Barack Obama signed legislation in late May aimed at keeping banks from doing such things as hiking interest rates with little or no notice and engaging in other consumer-unfriendly practices. But don't assume that just because you rarely carry a balance, you are immune from poor treatment at the hands of credit-card issuers.

Banks have cut off or pared back an estimated $1 trillion in credit lines since the peak of the credit boom, according to the now famously bearish analyst Meredith Whitney...

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