[chandhuthomas]

My friend has a credit card with 3000 dollars credit limit and recently who got reduced to 2600 dollars .what should be the reason?

[s_cianci]

Doesn't have to be one. Welcome to the club ; the same thing just happened to me. I think that the state of the economy is making a lot of credit card issuers nervous and they're "tightening their belts", so to speak.

[DrJ]

s_cianci is right... doesn't need to be one.

Well, more accurately, there are a number of givens that they could blame it on. Could be a NUMBER of different factors... high available credit limit (amongst other credit lines), any recent derogatory remark, too many credit lines open. Basically, anything that can be perceived as a possible credit risk could make a creditor change the terms of the credit issued.

[JudyKayTee]

Doesn't have to be one. Welcome to the club ; the same thing just happened to me. I think that the state of the economy is making a lot of credit card issuers nervous and they're "tightening their belts", so to speak.

I thought that if a credit card company reduces YOUR credit line or increases YOUR interest without reducing/increasing everyone else in your particular category (income between X and X with a credit line of X, for example) it's discrimination and they can be sued.

I see Attorneys on TV making their pitch for discrimination cases all the time. They all tell the people who have seen changes in their credit cards to write, asking for an explanation of why the change was made.

Is this not correct?

[s_cianci]

I thought that if a credit card company reduces YOUR credit line or increases YOUR interest without reducing/increasing everyone else in your particular category (income between X and X with a credit line of X, for example) it's discrimination and they can be sued.

I see Attorneys on TV making their pitch for discrimination cases all the time. They all tell the people who have seen changes in their credit cards to write, asking for an explanation of why the change was made.

Is this not correct?

That may be technically correct but I'm sure that credit card issuers are adept enough at finding loopholes so that they're covered in the event of a discrimination lawsuit. I think the OP was referring to a "derogatory" reason for the credit card issuer lowering the line of credit such as late payments, over-the-limit or something similar. Like I said, I just had my line of credit cut in half on a credit card even though I had made all payments on time and never went over my limit. They gave me a vague explanation that I believe has to do with my history with some other creditors so if I did try to sue them for discrimination I'm sure they'd pull that out of the hat.

[JudyKayTee]

It's not technically correct; it's LEGALLY correct.

[Fr_Chuck]

Credit card companies often reduce credit lines based on
1. changes in credit histody
2. payment history
3. card usage
4. total credit card debts to income
And dozens of other reasons