Is there a way to prevent credit card companies from increasing your limit?

Question

I have several credit cards is any they keep raising my limits w/o my knowledge. I'm afraid now that I have too much credit in my name. Is there a way to fix this? Perhaps ask the company to lower my limit without this effecting my credit negatively. I just don't want the option to ever have that much debt for whatever reason.

Answer 1

Some credit card companies automatically increase your credit limit without you having to do anything, and this improves your credit score (if that matters to you). But I don't think there's really a way for you to prevent them from doing this... you can certainly try calling your credit card companies and asking them to keep your limits as is and not to increase them anymore. Because I think that asking them to reduce your limit will hurt your credit score (again, if that really matters to you).

Answer 2

Please consider that credit card limits are subject to increases and decreases at any time. Just because you have a certain limit this month doesn't mean it will be the same next month. A lot of this depends on how much risk the credit card companies' underwriters are comfortable with at a given point in time. A lot also depends on customers' debt to income ratio, and how they're using those cards. People who owe a lot of debt and carry high balances on multiple credit card accounts are now viewed as higher risk customers, and these are usually the ones who are first targeted for credit limit reductions. However, in some cases, even people who don't fit into that category are getting notices that their credit limits have been cut down. Its not bull. As the economy gets worse and credit gets tighter, many more revolving lines of credit are either going to be cut or even closed.

Answer 3

You can certainly call your credit card company and ask them to either keep your limit the same or lower it. They should be able to do what you ask.

It will not affect your credit, UNLESS you add to any current CC debt b/c it will change your debt to available credit ratio. That ratio is a major factor in your credit score b/c it indicates how well you use your credit. Usually this ratio should be below 30%, but the lower it is the better your score. Basically, if you keep charging but your credit limit remains the same, the ratio goes up and your credit score goes down.

I guess it all depends on your spending habits, if you pay off your CC's every month and have a tight hold on your finances there's no reason to ask them to stop raising your limit. However, if your balance is creeping up and you can't afford to pay off your cards every month I would certainly ask them to freeze or lower your limit.

Answer 4

You want to have higher credit limits assuming you will not charge to the limit. A smaller % of available credit used is good for your credit rating.

Answer 5

Just because they raise your limit, you are not obligated to use the credit. The more "unused" credit you have, the better you look. It is called discipline. Let it set there unused.

Answer 6

You can always contact the card issuer and request that they reduce the credit limit.

Answer 7

Issue instructions to the company, or cancel a few cards if you have too many!