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Credit Card Blog - What Should I Do If My Credit Card Company Lowers My Credit Limit?

 Tuesday, 15 May 2007

So you have always made sure you followed all the rules set out by the credit card company. But one day they lower your credit limit, after all your hard work. Other then being frustrated, what can you do? I know you may feel helpless at first, but there are things you can do to find out why this happened.

Tips If Your Credit Limit Has Been Lowered

  • Consult your credit score

In order to keep up to date with your credit, you should be doing this anyways to make sure you always know where you are standing. Check to see if any numbers have been drastically changed in any way over the past year to six months. If you stay on top of it, this step should be easy. A change in your credit ranking will definitely effect what amount the credit card companies will offer you.

  • Make sure you find out if you were late on any bills

You may have sent your credit card bill in on time, but the mail service could have misplaced them. Unfortunately some companies will not be generous on their late terms. This can affect your credit score if it happens often. You can always be cautious and send in your bills before the end of your grace period or even early so that you will not have to worry about late fees or the effects on your credit score. Find out how late is too late with your credit card company, and pay your bill on time.

  • Be aware of your financial situation at all times

Manage your money and your credit cards correctly. Make sure you don't do anything that would give them a reason to lower your credit. Try to keep a budget and an account of all your spending as you need to make sure you do not have any fraudulent charges on your account. Don't assume the online account summary is correct, take the time to sort out your expenses.

  • Contact your credit card company directly

If in doubt, go to the source. If they cannot give you a complete answer, then something is definately wrong. They will be able to inform you of why it happened and how you can cure the situation in most cases. Generally they will even send out some form of a letter when your credit has been lowered to make you aware of the situation. Don't hesitate to ask the company if you have any questions; as much as they have lowered your line of credit, they do value your business.

  • Check for mistakes

People make mistakes, and the credit companies understand that. Every step of the way look for errors or things that could have affected you negatively. Don't rely on a mistake, but just be aware. The slightest mistake can be damaging. When you have found the mistake, learn what you can do to correct it in a timely fashion. Overtime the credit companies will forgive you. Keep at raising your credit score, and you will find the many benefits of having a high credit ranking.

Be Aware At All Times!

The main point of this blog post is to make sure you know what is happening financially at all times. If they lower your credit limit find out why and ask questions until you understand. Then find out how you can fix it. Don't just sit there and let it affect you. If there is a way to lower your credit limit, there is also a way to raise your line of credit back up. So be proactive and go find out how to improve your financial life!

Additional Resources:

Trey Knox
Team Your Credit Network

Tuesday, 15 May 2007 19:27:38 (GMT Daylight Time, UTC+01:00)  #     
Bad Credit | Credit  | 
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