What is a credit limit decrease and why might it happen? expandable section
Your credit limit may be reduced for a range of reasons – such as a change in the products or services your provider offers, or a change in law or regulation.
Some banks will decrease your credit limit, or even limit your ability to use your card, if they reasonably believe that there’s a significantly increased risk that you will not be able to repay what you owe.
If we ever do this, Lloyds Bank will always tell you as soon as possible afterwards and show you the amount you’re still able to spend on your statements and on Internet Banking or Mobile Banking app immediately.
A credit limit decrease can impact your overall available credit, which could negatively impact your credit score.
