Question : Can my credit card company unilaterally lower my Credit limit at its discretion? How likely is this?
I have a credit card with a credit limit of $12,500. I have not only been making the payments each month, but I have been paying off my monthly balance at the end of each month consistently. My father told me that, given the situation of today's financial market, the bank can decide to lower my limit. Is this possible? Is this likely? If so, what factors would influence their decision to lower my credit limit?
- asked by Mark R
All Answers:
Answer #1
Yes, they can and have been. Having a high actualdebt to total available credit ratio is one redflag. Making only minimum payments is another.
- answered by bud68
Answer #2
A credit card company would only lower the creditlimit of cardholders when cardholders consistentlydelay payments and frequently defaul on theaccount. In your case, it's very unlikely thatyour card limit will be lowered. However, creditcard companies can unilaterally lower cardholders'credit limit if they so choose/decide.
- answered by Kay
Answer #3
I read something funny in Money magazine.If youare a good customer that pays their bills in fulleach month, they are actually raising your creditlines. Their hopes are that you will spend moreand eventually trap yourself into payinginterest./
- answered by Judy
Answer #4
Mine was also lowered, the reason was that I don'tdo that much charging. the greatest charge was fora new computer, which I paid off at the end of themonth.My history of charging as very, very, low,therefore a cut in my credit limit. I don't usethe card enough to warrant a high credit limit.
- answered by tinker46139
Answer #5
Look for it to get lowered at any time, esp, ifit's a Citibank card-they are in deep trouble, sothey are looking at all customers and want tolower their risk as much as possible. CC company'slook at your overall debt, payment history withthem and other cc you may have, how long have youbeen a customer etc. So don't be surprised if itgets lowered, they can also raise interest ratestoo, and fees so keep an eye out for the littlemailers that come in small white envelopes-easy tothrow away as junk mail
- answered by llapczynski
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