Credit Card Limit: Recently, numerous individuals receive messages, it was mentioned. Banks lower the credit card limit for customers due to various reasons. In certain situations, the customer holds responsibility for this, whereas in numerous instances, the customer plays no part in this choice. We are informing you of the factors that usually lead banks to lower customers’ credit card limits.
Information from TransUnion Cibil indicates that there has been a rise in credit card default cases. It rose from 1.6 percent in March 2023 to 1.8 percent in June 2024. One factor contributing to this is the rising appeal of Buy Now, Pay Later options and EMI payment plans offered by e-commerce businesses.
Credit card dues rose from Rs 2.6 lakh crore in March 2024 to Rs 2.7 lakh crore
TransUnion Cibil’s report indicates that the outstanding credit card dues rose from Rs 2.6 lakh crore in March 2024 to Rs 2.7 lakh crore in June 2024. In March 2023, it was only Rs 2 lakh crore. If you consistently postpone paying your credit card bill, the bank might view you as a high-risk client. As a result, it could lower your credit card limit. Your payment behavior also influences your credit score. Timely payment of your credit card bill boosts your credit score positively. A delay in payment or failing to pay lowers your credit score. Consistently paying only the minimum amount can negatively impact your credit score.
Contact the customer service
If your credit card limit has been lowered by the bank, you should contact the customer service department to find out why this has happened. If you have missed a payment for any reason, you can notify the bank about it. You may ask to raise the credit limit once more. Once they are pleased with your response, the bank may raise your credit limit.