 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: Why Your Credit Limit Might Have Changed\n----------------------------------------\nWhile your account is assigned a credit limit when you open it, the creditor can choose to increase or decrease in the future. There are different reasons why a creditor might decide to change your credit limit.\nFor example, the company **may lower your credit limit** if:\n*   Your credit score drops\n*   You miss payments\n*   You take on more debt (including debts from other creditors)\n*   You infrequently use the account\n*   Your buying behavior changes\nOn the other hand, creditors may **increase your credit limit** when:\n*   Your credit score improves\n*   Your income increases (and you report the increase)\n*   You have a good history of paying your bills on time\n*   You request a credit limit increase\nCreditors might also change credit limits due to factors that are outside your control, such as when economic conditions are rough.\nAnd, some actions can be interpreted in different ways depending on the circumstances. For example, someone who carries credit card debt might see their credit limits lowered if the creditor thinks they're at risk of missing a payment. Or, the creditor may increase their credit limit if they think the person wants or needs a higher limit and can afford to take on more debt. END