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Decrease your credit limit

  • Updated

Neo currently doesn’t offer the option to decrease the credit limit for credit cards.

Tips to manage your spending

If you’re interested in lowering your credit limit as a strategy to manage your spending, here are some other ways to keep track of your card’s usage.

Set up spend notifications

Customize your notifications to get notified whenever a purchase is made with your card. You can also customize the alerts to get notified when your card balance is approaching a set amount. 

Manage your card’s transaction settings

You can disable different types of transactions by managing your card’s transaction settings, including cash withdrawals, online transactions, and tap/chip/swipe transactions. 

Freeze your card

If you want to disable all transactions for your card, you can freeze your card

Credit limit and credit scores

Credit utilization is a major factor that contributes to credit scores. If you have a higher credit limit but don’t spend much of it, you’ll have a lower credit utilization rate. 

Credit bureaus typically recommend using less than 30% of your credit limit across all your credit cards. To help lower your credit utilization, you can pay off your balances frequently (such as twice a month) or request a higher credit limit

Automatic reductions to your credit limit

Your credit limit may be automatically adjusted if you have missed payments, low credit usage, or haven’t used your card in a long time. Here’s what you can do if your credit limit was automatically changed.  

Decrease the credit limit for secured credit cards

The credit limit for secured card cards is the amount of money you have set aside in the security fund. Currently, the credit limit for secured credit cards can’t be lowered. Money in the security fund can only be withdrawn when the secured credit card is closed. 

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