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Cutting credit card limit.

New Visitor

Cutting credit card limit.

Recently 2 of my credit card limits have been lowered, Bank of America and AMEX. for example, let's say I have $9000.00 balance on my card but my limit was $13,000. So they lowered my credit limit to $10,000.00. I am not using this card for anything. the reason I have such high balance is for medical reasons. I have been paying the minimum amount. Same thing happened to my Amex. I am only using these 2 cards. Rest of my c.c have $0.00. So  what I am worried about is that, this shows that I am about to max out my cc.

I have never been late on any payments and is this going to effect my credit score. I do not know what my score is, and never had any problem of not getting approved. This really worries me because I want to buy a car and am afraid that my score will be low and I'll get higher rates.


I have not used either cards  am making payments.

Can someone explain me how this credit limit reduction is going to impact on my credit score?





Message 1 of 3
Valued Member

Re: Cutting credit card limit.

The same thing happened to me. I checked my amex and it was 2500.00 orig 10,100.00. I normally PIF this one time I didnt. I owed 2438.00 and they decreased me to 2500.00. When I saw that I only had 72.00 avail credit, I thought it was an error. When I called the rep responded yeah it was done on the 21st, you will receive a letter in the mail!!! One day after my statement cut. I was at work and couldnt get deep but will call them today. I have never been late, over limit or pay min. I always PIF. Needless to say I PIF and will charge gas til they decide whatever, I refuse to be in bondage to a credit card.
Message 2 of 3
Senior Contributor

Re: Cutting credit card limit.

Hi Hyeuhee, welcome to the forums!


Amex is notorious for what's called "chasing the balance" on CC accounts with high balances. As soon as a payment is made, they lower the CL to right above the new balance. When the CC is paid off, they will either close the account outright, or lower the CL to $500. 


Bank of America also recently lowered limits on 2 of my CCs with them (always in good standing) ~$20,000. Banks are lowering their exposure in the tight credit environment. 


The effects on your utilization can be somewhat detrimental to your CRs, as it seems like your CCs are always maxed out. To help mitigate this, I normally suggest to think about BT'ing your balance to another, non-weird CC, such as a credit union. 

Here we go again...
Message 3 of 3