Reduce Credit Card Limit: Many times it is seen that some credit card companies reduce the limit of customers’ cards. Let us tell you that every bank practices reducing the credit card limit. However, any bank does this only under certain circumstances. Let us know when a bank can reduce the credit card limit (How to Use Credit Card).
1- On defaulting on payment
If we look at the data of the Reserve Bank of India, then by March 2023, credit card default has increased to Rs 4072 crore. If you delay paying your credit card dues many times, then the bank considers you as a risky customer. It feels that you do not have enough money to easily repay the credit card dues and the bank reduces your credit limit.
2- Carry forward the outstanding amount by paying the minimum due
There are many people who carry forward their dues to the next month after paying the minimum dues of the credit card. If you do this two-three times, then it is okay, because in such a situation you pay interest on the dues, which earns the credit card company. But if you make it your practice, then the outstanding debt on you will keep increasing and it is possible that you get caught in a debt trap. In such a situation, it may be difficult for you to repay the loan, which is a big risk for the credit card company. In such a situation also, companies reduce the limit of the customers’ cards.
