 TITLE: Why Did My Credit Score Drop? CONTENT: One of Your Credit Limits Decreased\n-----------------------------------\nSimilar to maxing out your credit cards, having your credit limit decreased can increase your credit utilization ratio and negatively affect your credit scores.\nImagine, as in the example above, your total credit limit was $10,000 and you carried a balance of $3,000. In this case, your utilization ratio would be 30%. If a credit card issuer lowered your limit to $6,000, but your balance remained the same, your utilization ratio would change to 50%. This could cause your credit score to drop.\nCredit card issuers set initial credit limits based on factors including your income, current debt-to-income ratio, credit history and credit score. An issuer might lower your credit limit if, among other reasons, you haven't been using your card much or if you frequently miss payments or pay late.\nYou can request a credit limit increase from your current issuers or open a new credit card account if you're concerned that your credit limit is too low. But know that if your limit recently went down, an increase might be hard to come by, and it may be best to wait to request more credit until your score improves.\nRegardless of whether your credit limits are shrinking or your balances are increasing, keeping an eye on your credit utilization ratio will help you better understand your fluctuating credit score. END