Credit limit decrease
Cards & borrowingWhen a lender reduces the maximum amount you can borrow on a credit card.
Overview
Lenders can reduce limits based on risk or account activity.
A lower limit can increase your utilisation ratio.
Why it matters
- It can reduce your available credit.
- It may increase utilisation and affect your score.
- It can signal a change in lender risk view.
FAQs
Can a lender reduce my limit without asking?
Yes, lenders can adjust limits based on their policies.
Does a lower limit hurt my score?
It can if your utilisation increases as a result.
Related terms
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