Skip Nav
Job Search
Ask These 7 Questions at Your Next Job Interview — They Won't Be Expecting Them
35 Work-Appropriate Halloween Costumes That Keep It Classy
Job Search
Real People Share the Greatest Career Advice They've Ever Received

Your Credit Card Limit Could Drop Any Day Now

You know that Visa in your wallet with the worn out strip? The issuing bank might reduce your card's limit one of these days and it may happen without warning. Companies have 30 days to notify customers of a change but often give notification after action has been taken, and the reductions can have a negative effect on customers' credit scores.

The actions prove that the loose credit of previous years is now tightening, and according to The New York Times banks that issue cards with big names like Visa, MasterCard, and American Express are aiming their limit reductions at customers living in areas suffering from the housing crisis, those who are self-employed with businesses in troubled industries, and customers that have large debts.


Around The Web
Join The Conversation
JaimeLeah526 JaimeLeah526 8 years
I didn't even know they could drop your credit limit. Isn't that a bad business move? I always thought they didn't care how much debt you got into. I would be so pissed if my limit dropped and I needed it for something. UGH. Thanks for letting us know about this Savvy.
ilanac13 ilanac13 8 years
that's a good question - i wonder what they will do about that. i think that it makes sense though to drop limits. there was a time that companies were raising credit limits because of the equity that you had in your home, but now that it's not the case due to the housing bust, i think that people really do live beyond their means, and shouldn't do that anymore.
colormesticky colormesticky 8 years
Same here. But I wonder- say you have a $12,000 limit and you owe $11,000 on the card. Can they reduce your limit to $10,000 and charge you huge fees for being over your new limit?
karisaamy karisaamy 8 years
My credit limit has always been way more than I would spend anyways, it wouldn't really affect me.
$4 a Day Cookbook by Leanne Brown
Joan Holloway Modern Office Video
Money Habits to Learn From Great Depression Parents
The #GlobalPOV Project's Welfare Video
Gen Y's Endless Youth
How Does the Health Insurance Exchange Work?
How Much Food $5 Will Get You Around the World

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Career
All the Latest From Ryan Reynolds