The fact that banks have gotten a bit erratic with their credit policies is causing one well know financial advisor to completely change her advice. Suze Orman does a complete 180 and now says people should build an emergency fund before paying off credit cards. She advises this because “the sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been in paying your bills on time.” The article about her change in advice can be found here.
We have written about the situation here and here.
See:
http://finance.yahoo.com/news/Suze-Orman-and-the-New-Rules-usnews-14847657.html
http://moneycafe.com/blog/2008/12/credit-line-reductions/
http://moneycafe.com/blog/2009/03/another-round-of-credit-line-reductions/