If your credit limit was cut recently by your credit card company, then you may be spinning your wheels to figure out what happened. But the truth is, there are a number of reasons that this can happen – and believe it or not, it may not always be your fault.
So if you find that your credit limit was cut by your credit card company, take a moment to explore some of the reasons that this may have occurred:
- Irresponsible financial behaviors. Okay, this is definitely your fault – unless you’ve been the victim of identity theft. If you’ve spent time running in and out of stores charging everything in sight to your credit card and didn’t pay your bill on time, it won’t take long for you to be deemed financially irresponsible – and have your limit reduced.
- The suffering economy. In the wake of banks closing left and right, you may find that your credit limit was cut simply because there was no money available to back it up if charged. Some banks also feel that because people are losing their jobs, they won’t be able to pay off their balance, and thus are lowering the balance to play it safe.
- Youmight be catching the blame for others’ mishaps. In recent years, some credit card customers have found that their credit limit was cut without them having done anything wrong. What’s happening is that some companies look at something called “behavioral scoring” to decide whether the people who shop in the same places as their customers have bad financial behavior. If they do, you as a customer may catch the blame by having your limit reduced.
Credit card companies are doing everything they can to stay afloat in challenging times, but unfortunately, customers can suffer as a result. So if you find that your credit limit was cut through no fault of your own, don’t feel bad. By waiting it out, you may see your limit raised once again.