The Obama administration wants to pass a stimulus package of about $700 billion dollars. But back at the ATM customers are finding their credit limits slashed and their access to credit being shot down. About 20% of banks are reducing credit limits for prime borrowers and 60% of banks lowered limits for nonprime borrowers.

Some banks, like Bank of America are closing accounts with zero balances. J P Morgan is lowering credit lines on accounts that show increased risk or are inactive. American Express, US Bancorp, Washington Mutual and Wells Fargo said they would reduce credit lines if they think the customer is a high risk.

Another added problem is that your credit score is based in part on how much you borrow relative to your credit limit. Let's take an example and assume that you have a $5000.00 limit and have purchases in the amount of $1000.00. You have excess credit of $4000.00 and your credit score is based on how much unused credit you have left. Now, if your credit line is reduced to $2500.00, you have only $1500.00 of unused credit. So now you are close to being maxed out and your credit score could be lowered.

Customers can complain to their banks and try to get their credit lines increased or simply close the account.

So, it doesn't really matter how much money the Obama stimulus is, you'll have to pay cash because your credit line has been shredded.

Did you check your credit lines today?