CREDIT CARD IS CREATING PROBLEM NOW....

As the credit crunch weighs on the financial services sector, credit card issuers are tightening lending terms with consumers to lower their risk profile, from cutting borrowing limits to closing dormant accounts.

“Banks need to be more conservative in how they are lending," says Carole Kaplan, director of public relations at the American Bankers Association.

A survey of credit card industry executives in July found that 62 percent of their companies planned to reduce lines of credits because of economic conditions, according to Javelin Strategy & Research.

While changing a customers credit limit is nothing new, representatives of the largest cars issuers in the U.S., Bank of America, JPMorgan Chase and American Express, say they are increasingly cutting credit card limits for their customers because of the downturn