You should call up your credit card company and ask them to reduce your credit limit. Credit card company sometimes increases your credit limit based on your spending on the cards and your repayment history. Now, increased credit limit means that you can spend more on your cards and so you can ask them to give you the credit limit you used to have earlier. Asking your credit card company to increase your credit limit will in no way affect your credit score.
If you have low credit limits on your cards, it will not only help you to keep track on your spending, but also help you to open new lines of credit more easily in future. If you have high credit limits on your cards, the prospective creditors will find you risky to issue a new credit because if you somehow exhaust the limits on the cards and fail to repay, you may also default your new lines of credit. Credit limit has no role to play in determining your FICO score.
It is legal for credit card (CC) companies to reduce your credit limits, even if you have a good credit history. They can do it without prior notice. The CC companies reduce your credit card limit to reduce their own risk, keeping in mind the present market situation. However, there is a rule now which comes into effect from July 2010. According to which CC companies have to give 45 days of advance notice before reducing your CC limit.
If there is a sudden drop in the credit limit, it would adversely affect your credit score. The best way to deal with this, is to pay down your credit card balances as fast as possible.
I have a Chase account and keep receiving checks to do balance transfers. I paid one of my credit cards with one that I received 3 weeks ago and recieved a letter today that it was returned becuase my credit limit was reduced. Not only am I going to be charged a late fee I could be liable for damages from the other credit card company for writing a bad check. What are my legal rights? Doesn't the credit card company have obligations for what is somewhat of a promisary note of extended credit? They have damaged my credit and since 3 of my cards have been reduced with the credit limit it has increased my debt to income ratio. I have never been late and now my credit score because of this has dropped trememdously. Could this be considered harassment or defamation of character?Any advice would be helpful
i have just spoken to the Money Advice people and they have advised that reducing credit limits if not required helps as even if you have exposure to credit that you habe no intention of using this can affect your credit rating
You should call up your credit card company and ask them to reduce your credit limit. Credit card company sometimes increases your credit limit based on your spending on the cards and your repayment history. Now, increased credit limit means that you can spend more on your cards and so you can ask them to give you the credit limit you used to have earlier. Asking your credit card company to increase your credit limit will in no way affect your credit score.
If you have low credit limits on your cards, it will not only help you to keep track on your spending, but also help you to open new lines of credit more easily in future. If you have high credit limits on your cards, the prospective creditors will find you risky to issue a new credit because if you somehow exhaust the limits on the cards and fail to repay, you may also default your new lines of credit. Credit limit has no role to play in determining your FICO score.
credit card reduction
What does it mean when the credit card company reduces you limit, and you have always paid on time and paid more than the minium payment ?
Hi steph,
It is legal for credit card (CC) companies to reduce your credit limits, even if you have a good credit history. They can do it without prior notice. The CC companies reduce your credit card limit to reduce their own risk, keeping in mind the present market situation. However, there is a rule now which comes into effect from July 2010. According to which CC companies have to give 45 days of advance notice before reducing your CC limit.
If there is a sudden drop in the credit limit, it would adversely affect your credit score. The best way to deal with this, is to pay down your credit card balances as fast as possible.
Crdit card reduction
I have a Chase account and keep receiving checks to do balance transfers. I paid one of my credit cards with one that I received 3 weeks ago and recieved a letter today that it was returned becuase my credit limit was reduced. Not only am I going to be charged a late fee I could be liable for damages from the other credit card company for writing a bad check. What are my legal rights? Doesn't the credit card company have obligations for what is somewhat of a promisary note of extended credit? They have damaged my credit and since 3 of my cards have been reduced with the credit limit it has increased my debt to income ratio. I have never been late and now my credit score because of this has dropped trememdously. Could this be considered harassment or defamation of character?Any advice would be helpful
Credit limit reduction
i have just spoken to the Money Advice people and they have advised that reducing credit limits if not required helps as even if you have exposure to credit that you habe no intention of using this can affect your credit rating
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