If the cardholder doesn't use the credit card for a long time after the credit card is successfully opened, or the amount spent each time is very low, then the credit card will not generate any income for the bank. So there is no need for banks to use credit cards. In this case, the credit card limit will be reduced accordingly.

If the credit card is in arrears for a long time, or the amount of arrears is large, and the bank still fails to repay after repeated reminders, then in this case, the bank will have great doubts about the cardholder's survival and think that the cardholder has a great risk of bad debts, so it will reduce the cardholder's credit limit.

Extended Data When a cardholder uses a credit card to make a large amount of consumption, the issuing bank will pay the consumption funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and deduct the consumption funds from the cardholder's credit card account in stages according to the cardholder's application, and the cardholder will repay according to the monthly recorded amount.

In the past, credit card installment mainly included bill installment and single consumption installment, and banks usually charged corresponding handling fees according to the number of installments. Whether it is bill installment or single consumption installment, the premise is to generate consumption behavior first, and then the bank will set installment repayment for the generated credit loan.

Baidu encyclopedia-credit card