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Credit card limit: On this small mistake, the bank can reduce the credit card limit, know how to increase it

Credit card limit: The customer is hit twice simultaneously. One, he cannot get the credit limit as compared to the first, secondly, due to low credit score, there is a problem in taking loans etc. The biggest thing is that banks are free to do this work.



Many messages will be coming from the bank to increase your credit card limit. It is possible that the representative of the bank also calls you. But do you know that due to some small mistakes, suddenly the credit card limit decreases and you do not even know about it. Mistakes are many, but the most important one is the change in the way you spend.

If the credit card limit suddenly decreases, then there are many effects. This reduces your ability to make purchases. Later it reduces your credit score. The rules say that the way the bank increases the credit limit considering your liability, timely bill payment and the mode of purchase. Similarly, it can also decrease suddenly. It has many rules, the most important of which is that when the bank finds that the credit card holder is in danger of default. If the bank feels that the cardholder can be a defaulter at any time by the way of spending, then the bank can reduce the credit card limit.

Credit limit reduced in Corona!

Banks do a lot of such work in an epidemic like Corona. This trend has been increasingly seen in America. In March this year, ‘Bloomberg’ reported in a report that 14 major credit card companies or banks in the world reduced their credit limit by $ 99 billion in 2020. The government makes many rules to protect customers from this, but banks are free to decide which customer’s credit limit to increase or decrease. Banks can increase or decrease the credit limit of the customer without assigning any reason.

Limit drop effect

Decreasing credit limit creates many problems. Your purchases go down which in turn lowers your credit score. The customer is hit twice simultaneously. One, he cannot get the credit limit as compared to the first, secondly, due to low credit score, there is a problem in taking loans etc. The biggest thing is that banks are free to do this work. They can reduce the limit without any reason depending on the spending pattern of the customer. For this, the term and conditions of banks are responsible, which customers rarely read before. There is no binding rule for banks not to reduce the credit limit in term and condition.

Keep checking credit score

It is not in a hurry that the credit limit is slashed secretly. But can’t deny it either. It is very easy to know whether your credit limit has decreased. For this, you should keep checking your credit report and credit score at the same time. Is it not that money is being transferred from your credit card to any fraud account. This can also affect the working of the credit card. There is a rule to give credit report to a customer at least once in a year. You can also watch it online. Many banks also provide this facility for free.

Do this, the credit limit will not decrease

If you want to avoid reducing the credit limit, then avoid extravagance. If you are troubled by the habit of spending, then take the help of a counselor and learn tips to stop spending. Spend according to your budget because many types of problems are being faced during the Corona period. The best way to save the credit limit or to maintain the credit score is to pay the entire balance of the bill on time. Always keep the card in use and do not close it.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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