Credit Limits: Can yours be reduced?

1
Credit Limits Can Yours Be Reduced?

• Presented by The Phenix Group
• https//thephenixgroup.com/

2
Credit Limits Can yours be Reduced?
Having your credit limit reduced is common. When
a creditor lowers your credit limit, it can
negatively impact your credit score. Here are the
things you can do to minimize the damage.
3
Credit Limits Can yours be Reduced?
Yes. A reduced credit limit can affect your
credit score by increasing your credit
utilization, which accounts for 30 percent of
your credit score.
Why Would A Bank Lower Your Credit Limit Anyway?
4
Credit Limits Can yours be Reduced?
To minimize the risk to banks in uncertain
economic times, they may choose to slash your
credit limit. A bank can reduce your credit limit
at any time. Another reason a bank or credit card
company might lower your limit is because of low
usage.
Does It Matter If Your Limit Is Lowered?
5
Credit Limits Can yours be Reduced?
First, contact your creditor to ask if your old
limit can be restored. You can also consider
transferring the balance to a card with a higher
limit. Finally, paying off your balance quickly
goes a long way to bringing down your credit
utilization.
What To Do If Your Limit Is Lowered?
6
Credit Limits Can yours be Reduced?
Follow these steps when your credit limit takes a
hit to ensure your credit score isnt negatively
affected. Keep in good standing with your bank
that lowered your rating in the hopes it can be
restored in the future.
7
Thank You
Learn More at https//thephenixgroup.com/credit-l
imits-can-yours-be-reduced/