What are the consequences of proactively reducing the limit?
1. Difficulty in raising the credit limit. Although it is said that the cardholder did not reduce the limit due to bank risk control due to other problems, but applied for a credit card credit limit reduction on his own initiative, it does not mean that the cardholder wants to raise the limit later. It's easier than others. For banks, no matter what reasons cause the cardholder to reduce the credit card limit, as long as the cardholder applies for a limit increase, the bank will re-evaluate the cardholder's personal comprehensive qualifications. If after the evaluation, the cardholder's personal comprehensive qualifications are not that excellent, or if the bank happens to strictly control the cardholder's qualifications, it may be more difficult for the cardholder to apply for a limit increase. If the cardholder previously swiped the card amount or made few purchases each month, it would be even more difficult to increase the credit limit.
2. Credit limit reduction If the cardholder does not use the credit card for a long time or actively reduces the credit card limit, it is actually not a good thing for the bank. Because the bank has no profit from the cardholder, and the cardholder does not have a stable credit record, the impression on the bank will not be very good, which will lead to a reduction in the creditworthiness of the cardholder with the bank.
How to proactively reduce the credit card limit? Some banks' mobile apps have a credit card limit adjustment function. Users can actively lower the credit card limit. This does not require bank approval. Cardholders can also choose to go directly to the bank to fill out the application form and then apply to reduce the credit card limit. The above is the sharing of relevant content on "What are the impacts of proactively reducing the limit?" I hope it can help everyone!