Analysis of the reasons for sudden reduction of credit card limit 1. Credit reporting problems include a variety of situations, such as overdue loan products resulting in bad credit, which directly affects credit reporting; Your credit is frequently checked by financial institutions or banks, and there are too many query records in a short period of time that mess up your credit report. This is also a sign of poor credit report, but it is not as serious as being overdue. 2. Illegal use of cards Banks issue credit cards for cardholders to use for consumption. Although they can withdraw cash, they must pay fees. However, many people use POS machines to withdraw money from credit cards without paying fees. This is a kind of If the behavior seriously interferes with the economic order, and there is a certain risk of default in large-amount cash withdrawals, the bank will reduce the balance of the cashed-out credit card or block the card. 3. Not using the card for more than half a year. Some banks directly publish notices on their official websites and will reduce the limit of credit cards that have not had transactions for more than 6 months. However, after the reduction, you can directly call the card issuer to restore the limit. 4. The debt is too high. Many banks will conduct post-loan management from time to time after the credit card is issued. If the credit report shows that the cardholder's debt is too high and the credit card is considered risky, the credit card will be reduced. After all, high debt will make banks question the cardholder's ability to repay.
How to raise the limit of your credit card if it is suddenly reduced? If the debt is overdue, you must repay it quickly. If the debt ratio is too high, you must first reduce the debt ratio, and then use the card well in the later period to maintain the card and increase the balance. For example, increase the frequency of credit card use, make more purchases with credit cards, repay on time, and develop good card usage habits. The amount of credit card swipes every month should be around 30%, with multiple transactions of small amounts and occasionally large amounts, and swiping cards at the bank's cooperative merchants. Wait, keep using the card for 3 to 6 months, and when the overall score comes up, it will be easy to increase the credit limit.