can credit cards lower my credit limit or cancel my card entirely?

I know they can with unsecured credit cards but I have secured credit cards with $200 and $300 limits. Since I put up my own money, can they lower it?

Update:

I heard of a lot of peoples card limits being slashed because of the pandemic

13 Answers

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  • Anonymous
    2 months ago

    The card is secure in that the only funds that are risked are yours! They can close your account for any reason!

  • 2 months ago

    Yes. If you read the terms of your agreement, the only thing they CAN'T do is change the terms and refuse to let you close the account.

  • 2 months ago

    If one has a secured card, I think this is the wrong thing to worry about.  The concern should be to keep the secured card in good standing, paying it off in full every month, and building a credit history.  The credit card issuer makes a small amount of money on every purchase, so it makes no sense to cancel a card in good standing (secured or not).  And I really doubt that an issuer will lower a secured credit limit from $200 or $300, if the card is in good standing.  They risk nothing, as the deposit can be used to pay off the card balance at any time if there is trouble (but the card holder must make sure it doesn't come to that).

  • 2 months ago

    A secured card with your own deposit will stay the same. Other cards can have limits lowered or raised by the card company. 

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  • 2 months ago

    No, they can't lower the limit on a secured card. Not without returning your money at least. If you have a bad history with them they could close the card(s), apply your deposit you put up to the balance and send you what is left of the deposit, or if nothing is left after applying the deposit then you would receive a bill for the remainder of the outstanding balance.

  • P
    Lv 7
    2 months ago

    Credit Card Companies are not required to provide you any level of service they don't want to, but the better question is what is their incentive to do so?     With a secured credit card they can hold onto your deposit and collect all the vendor fees they get whenever you buy something.  There's no risk for them and they are making money, so they will leave you alone.  In fact if they lowered your limit they would make less money, so they have a disincentive to change anything.

  • 2 months ago

    Credit card companies may change the terms of their service at any time with a short advance notice.

  • 2 months ago

    I guess they could, but why would they lower it below the amount you put up? I men no real risk to them below that amount. You can always cancel the card if they are being unreasonable.

  • 2 months ago

    With secured, no, they generally don't do that.

  • Anonymous
    2 months ago

    Yes of course.

    But if they cancel a card that you have pre-paid they will need to refund your credit balance.

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