MW 'I didn't find out until after it was done': Chase cut my credit-card limit due to low usage. Could this affect my credit?

By Quentin Fottrell

'This is the first time I've ever had a credit limit lowered'

"I still have an adequate limit for my needs." (Photo subject is a model.)

Dear Quentin,

Chase lowered the credit limit on my Marriott card because I'm not using that credit card as much as I did in the past, since I don't travel as much anymore. I didn't find out until after it was done. I still have an adequate limit for my needs, and I understand that if there is any impact on my credit, it should be small and temporary.

But I'm wondering whether this could cause a ripple effect in which other banks might do the same with my lesser-used credit cards? This is the first time I've ever had a credit limit lowered.

Credit-Card User

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

Related: My husband plans to leave his estate to his adult son, who steals his credit card to gamble online. What can I do?

Your credit score might get dinged (slightly) for a month or two.

Dear Card User,

Don't take it personally.

It's not necessarily a bad thing that you're using your credit card less often. And, yes, every action tends to have some kind of consequence, as you found out. Not all banks tell a customer in advance that their credit limit is being cut unless it leads to an overdraft fee or some other fees associated with the credit card.

It's a reminder that credit is not free. It comes with risks for both parties, and credit-card companies use algorithms to manage that risk. If you're not using a card as much as you did in the past, it may suggest either that you don't require as high a credit limit or, as in the case of your Marriott card, that you aren't traveling as frequently, whether for work or leisure.

A line of credit comes with risks for both parties.

Your credit score might get dinged slightly for a month or two. But unless you're planning to take out a mortgage or an automobile loan, it's not going to make much difference to your life. It may be hard not to feel like a lower credit limit or a temporary ding to your score is a reflection on you, but it's really not. It's only a reflection of your spending habits.

Chase does not comment on individual cases, but in cases such as yours it is the bank's standard procedure to alert the customer in advance and again after a line of credit is reduced (so perhaps you missed the email/letter). In the first notification, you would typically be given the option to reach out if you wish to consider keeping your line of credit.

Ripple effects are unlikely

As to the potential ripple effects: It's unlikely that this will trigger alerts at other banks. It's not "contagious" in that way. Other issuers only have access to your total available credit, credit-card balances and overall debt-to-limit ratio, which is passed along to the credit bureaus. There's no reason for other lenders to leap into action.

You're also on the right side of the black/red debt line: Credit-card debt recently exceeded $1.2 trillion, and the average individual cardholder's debt hovers around $6,000, with a national average utilization rate of just under 30%. Your situation could be a lot worse than simply a lowering of your credit limit due to a drop in usage.

Some people like to put as many expenses as possible on their credit cards in order to maximize rewards while paying off their debt every month. Others see that strategy as risky, in the event of job loss or other unexpected events. This woman recently wrote to The Moneyist to say she had 25 credit cards and wanted to start canceling a raft of them.

Adverse-action notice

Ideally, you want to keep your ratio of credit-card usage to credit limit at between 25% and 30%. Credit bureaus - Equifax EFX, Transunion TRU and Experian EXPN - calculate their scores differently. A FICO score counts payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).

The Consumer Financial Protection Bureau says: "The card issuer cannot charge you over-the-limit fees or a penalty rate for exceeding your new, lower credit limit until 45 days after it has given you notice of the decreased credit limit. A card issuer cannot charge you over-the-limit fees if it didn't give you notice of the decreased credit limit.

There's no reason for other lenders to leap into action.

"In most instances, the card issuer must give you an 'adverse action notice' when it makes certain unfavorable changes to your account, such as lowering your credit limit, or when it terminates your account," the CFPB adds. "This notice should either provide specific reasons for the action taken or allow you to request a statement of specific reasons."

If you would like to avoid future inactivity-related cuts to your credit limit, you could put a small recurring charge on cards you rarely use and pay them off each month. Better yet, if you have too many cards, you could cancel a few and focus on your core cards. Otherwise, accept the lower credit limit. You're still the same person you were the day before it was lowered.

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Check out the Moneyist private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

Previous columns by Quentin Fottrell:

2025 has been one hell of a year. Consumers should expect more 'silent pain' in 2026.

'The house has quadrupled in value': I bought a house with my brother, but he did not contribute. How do I fix this?

My sister is buying our parents' $3 million house, but wants to deduct $100K for renovations. Who's right?

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-Quentin Fottrell

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February 03, 2026 14:38 ET (19:38 GMT)

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