After each credit card application is issued, there is a credit limit for people to use, and everyone's limit is different, and this limit can be increased or reduced, then , will credit card reduction affect your credit report? Let’s learn more below.

Will reducing the credit card limit affect your credit report?

Reducing the credit card limit will not have a negative impact on an individual's credit report. The only thing that will affect your credit report is late payment on your personal credit card. Credit card limit reduction only affects the available limit of the user's credit card. The credit limit of the credit card is reduced, indicating that the cardholder will no longer have as high a limit as before for advanced consumption.

What reasons will affect the reduction of credit card limit?

1. Overdue: When the overdue amount reaches a certain amount, or there are multiple overdues, the bank will consider the cardholder to have malicious overdraft consumption. Will unilaterally reduce the limit of the credit card or stop using the credit card.

2. Cash out: If there is illegal cash out behavior and it is detected by the banking system, the bank has the right to reduce the credit card limit.

3. Abnormal credit card swiping: If the transaction types of credit cards are particularly concentrated within a period of time, the bank will reduce the card limit based on the abnormal behavior of the credit card.

4. Long-term use: For safety reasons, banks will reduce the limit of credit cards that have not been used for a long time to avoid serious losses caused by credit card theft.

5. Theft occurs: Banks will carry out risk control for every credit card transaction. If the cardholder’s consumption record has been in China and there is a foreign card swiping record, in order to prevent the card from being swiped, usually Reduce the limit to ensure the safety of funds.

6. Bank risk control: Sometimes due to bank risk control, your credit card may be reduced, 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.