Under what circumstances is a credit card company allowed to lower your limit?
traveler#305 asked:
I remember reading about a woman who had her limit on a card lowered only because she spent a lot (under her limit) in a certain amount of time. If I am planning on maxing out my cards ( with the understanding I will kill any potential credit), how can I avoid getting the credit I already have lowered during my spending spree?
I remember reading about a woman who had her limit on a card lowered only because she spent a lot (under her limit) in a certain amount of time. If I am planning on maxing out my cards ( with the understanding I will kill any potential credit), how can I avoid getting the credit I already have lowered during my spending spree?
when applying for the card do asome research…I’ve personally never heard of a card company lowering a limit.
if you’re applying over the phone ask them, if online go to their FAQ
it really depends on the card company
Bad spending habits, over the limit too many times, late payments. Make timely payments on your account, pay more than the minimum balance, and show you can financially handle charging a good amount of money.
Credit card companies can lower your limit for any reason they want. They can also just close your account.
Maxing out your credit cards is not a good idea. Credit cards are not meant for long term financing. They should be used as a short term convenience. You will be wasting a lot of money on interest.
If you max out your cards, this will decrease your score. A decrease in your score could result in your interest rates being increased to the max. The shorter the time you’ve had these credit cards, the more likely you will get hit with that increase.
its no big deal
I dont think they can do that read all fine print on all cards but again that cant be done not that ive ever heard of.
They can lower them whenever they want.
the first thing that you can do is ask your company what their policies are with regards to lowering credit limits. that’s the best way of finding out. now, about your plan to max out your cards. keeping your utilization under 50% of your cl should keep it from negatively affecting your credit rating. you said that you already know that maxing out your cards could hurt your credit rating. is this going to be a one time thing? or are you planning on applying for other cards? if so, you are still going to have a difficult time because of its effect on your credit… anyway there are still other credit card deals that you could apply for. probably not as good as a deal compared to having a better credit rating. but you’ll find one.