If Your Credit Card Was Reduced You May Need Credit Cards To Repair Credit Damage
Credit cards repair damage to your credit, or cause it. Sometimes you are denied and transaction declined: no one likes to hear those words. Banks have always reserved the right to lower your limit or close your credit card if they wanted to. This is one reason that your own credit card companies will do a “soft pull” on your credit report, checking your score to see if your situation has changed to warrant raising, or lowering, your credit limit or interest rate.
After the Credit Card Act of 2009, it seemed that many companies were more likely to lower your credit limit than to raise it after a soft pull. In fact, since 2010 we have seen many people having their credit card accessdenied and card accounts completely closed, without any notice. There are at least 5 reasons that this might happen:
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You were late or missed a payment.
Missing a late payment not only hurts your credit score – a lot – but it also throws up a red flag to your credit card bank, often encouraging them to reassess your credit worthiness.
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You have regularly gone over your credit limit.
Going over your credit limit is another red flag that hurts both your FICO score and your relationship with your credit card company. If you do this a lot you may need credit cards repair, that is to work on rebuilding your credit. Going over your limit could trigger a soft pull of your credit; if other issues are revealed it could lead to a lowering of your limit of closing of your account.
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Your credit card access and usage has spiked.
If you suddenly begin using your credit card much more than you were they may reduce your limit or close your card. Yes, it’s true, if you start to look like you actually need your card it seems that is what triggers the banks to take your card away. The banks know that if you are using your card to live there is a good chance that they will be the losers in the end.
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Your limit might be reduced, or your account closed, if your credit score goes down.
Many banks have a policy to do a soft pull of your credit every so often, just to check your financial health. If they do one of these check-ups and find that your score has gone down they may reduce your card limit or close your account.
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You may need credit cards repair. Your limit might be reduced, or your card closed, if the bank changes their credit granting guidelines and you no longer qualify under the new guidelines.
Periodically a credit card company might change their credit requirements, usually making them more rigorous. When this happens they may decide to reevaluate existing customers, in light of these new requirements, and start lowering limits or cancelling cards if you do not meet the new requirements.
One big negative of having a card closed is that usually credit card with cash back accounts that are closed result in you losing your earned cash back. But just because one company reduces your limit, or even closes your account, doesn’t mean that every credit card you have will follow suit. In fact, you may still be able to get another credit card company to give you a new card. It happens. A lot. This doesn’t mean you need credit cards repair.
If you do find that you are having trouble getting a new card to replace the one that was closed consider applying for a secured credit card. Secured credit cards provide all the same benefits as any other credit card. The only drawback is that you have to put some money into a savings account to get the card. It’s still your money and you get it back eventually, so it can be worth it to build good credit.
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