Question : How often can credit card companies reduce my limit on my credit card?
I got a letter from a credit card company saying that they have reduced my credit limit without any previous warning. Is there a limit to how often can they do this? Can they do it how ever many times they wish? For example, once every six months/year?Also, Is there any way to see it coming?The letter is not the warning because when i get the letter, the limit change is already in effect.
- asked by Ebubekir K
All Answers:
Answer #1
The letter you received IS the warning.Yes, theycan lower your limit as they see fit.
- answered by My Take on It
Answer #2
There is a way to see it coming.This is whathappens when you get too close to your avialblelimit on your card.There is only one way to usecredit to get top scores.You pay in full eachmonth and never pay interest.It is 100% myth thatcarrying high balances is good for you, when itactually causes utter devastation to your reportsand to your career - since employers check.Notsure where the rumor got started - I think itsfrom ladies that shop online./
- answered by Judy
Answer #3
There is technically no limit on how many timethey can do it, but I wouldn't expect them to keepdoing it. There is no warning, and you usuallydon't find out until it's already done. This hasbecome a common practice that big banks have beendoing even to customers who always pay on time, oreven those who don't even carry a balance. If youraccount is in good standing, it was probably aone-time thing, otherwise it could continue.
- answered by autumn
Answer #4
They can increase or decrease your credit limit atany time and for any reason....as often as theywish.
- answered by CatDad
Answer #5
There is no limit on how often they can do this. Theoretically, they could do it every fiveminutes, if they could afford the postage to sendthat many letters.
- answered by StephenWeinstein
Answer #6
Credit card companies are back stepping withtodays economy. Even people with great credit areseeing the same effects. The reason your gettingthe letter is probably because your debt to creditis over 30%. The split used to be 50/50 meaningyou could have 50% of the credit used with 50%available but the economy has pushed it down to30%.. By the way the big credit card scam now isthat they charge you a monthly fee to monitor yourcredit. What most people dont know is Credit cardcompanies pull your credit every 3 to 6 monthsanyhow. But they big identity theft scare ismarketed so well that consumer pay for it. Ifyour a victim of identity theft it doesnt matterif you find out today or 6 months from now thedamage is already done. 1 Credit card company canmake as much as 180 million a year just off ofcredit watch programs they charge you.
- answered by chang z
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