How to stop banks from lowering your credit limit

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How to stop banks from lowering your credit limit

Postby Analgesia » Fri Aug 17, 2012 2:51 am

I recently came across an article on which stated:

"Use credit cards you don't want to lose:

Though the Credit CARD Act banned issuers from charging inactivity fees, nothing prevents an issuer from shutting down an unprofitable account or reducing the credit limit. As our 2010 study of credit card fees shows, a number of card issuers close accounts if they go unused for too long.

While there are no guaranteed ways of preventing an unwanted shutdown, it's smart to regularly use credit cards you want to keep. Pay in full to stay out of debt. (from

My questions are:
(1) How much do you need to spend on a credit card to maintain your given limit? Let's say you have a 35k limit. Can you only use $50 per month to maintain the credit limit?

(2) How often do peoples' credit limits get reduced/shutdown, and by how much?

(3) Do lenders usually give you a notice before they decrease your credit limit or close your entire account? Do they usually offer corrective actions you can take to prevent the credit limit decrease/shutdown?

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Postby Crashem » Sat Aug 18, 2012 12:27 am

Really dependent on card issuer and financial climate. During 2008, cld were common on unused cards and used cards to an extent. In current climate, using a card in any way every 2-4 months is fine.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

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