The credit card we apply for will have a limit at the beginning. This limit can be increased or decreased. So, does reducing the limit of the credit card have any impact on the credit report? Let’s learn more below!
p>Will a credit card limit reduction have an impact on your credit report?
Whether a credit card limit reduction will affect your credit report can be divided into 4 situations.
1. Overdue: If your credit card is overdue for a long time, the bank will most likely reduce the limit of your credit card as a warning. And because the derating is caused by overdue payment, it will definitely affect your credit report.
2. Cashing out: If your credit card is discovered by the bank due to illegal cashing out, the bank may also reduce the limit of your credit card. Cashing out is illegal, so it will also affect your credit report. .
3. Long-term non-use: When your credit card is not used for a long time, the bank will consider your real needs and will reduce the limit of your credit card. The reduction caused by this situation will not affect To the credit bureau.
4. Bank risk control: Sometimes your credit card may be reduced due to bank risk control, especially when there are abnormalities in your credit card, such as possible fraud or transactions. When the risk is high, in order to reduce the risk, the bank is likely to reduce the limit of your credit card, but this generally will not affect your credit report.
Can the credit card limit be restored after the credit card limit is reduced?
After the credit card limit is reduced, users who want to restore the credit card limit need to maintain good repayment records and consumption records, and do not use credit cards in violation of regulations. After a period of time, if the bank believes that the user's credit qualification is good, it will restore the credit card limit.