I checked my profile on my credit card company's website, and found out that my credit limit had been lowered, from $1250 to $750, making my available credit far, far less than it had been yesterday. I always pay my bill on time, and have been paying way above the minimum payment for some time now, so I called the number on the back, and was told that my credit limit had been lowered, but the operator didn't know why. She said it was all detailed in a letter that was on its way to me. I asked if she would have any idea as to why, she said that lately, they've been doing it to a lot of people who haven't spent even close to their limit, which is the case with me, and that that might be the reason why. I also asked if I could have my credit limit increased to the previous amount, and she said she couldn't do that. She was very nice, so I'm not complaining about her service. I have issue with not being told ahead of time that there would be $500 less available to me.
So what I really would like to know is, can they do that? I wasn't given any warning ahead of time, and while, yes, I have never really spent more than the new limit, I was planning on going abroad in March, and was counting on having access to the credit line I had before so that I could finance it. I know it's not really nice or considerate, at least from my point of view, but what I really need is for someone to let me know how I should handle this, if there are any policies being broken here, and what I could do to get my credit line increased as quickly as possible. I've never spent above my limit, and as I said, I've always paid my bill on time. I just don't like that I wasn't informed of this before it happened.
Edit: I just want to say thank you to everyone for your advice, news links, information, etc. I feel much better about it now that I've had a day to think about it and while I still think it's absolutely ridiculous to do something like this, I will view it as an opportunity to pay off my balance, switch to a card with a better interest rate, and manage my finances even better than I've been striving to (although this time of year, it's difficult for everyone).
Sorry for the PSA, lol. I just really want you guys to know how much you've helped.