Setting your own credit card limit is a do-it-yourself task. Forget about what your issuer will allow you to spend on your cards. Instead, decide on the maximum amount you’re willing to spend and hold yourself to it. You don’t need to call your issuer and ask for a lower limit.

If you don’t know your credit limit on a given card, it’s easy to find. Generally, your limit is included on your credit card statement or is available via your online account. You can also call the number on the back of your card to ask your provider.

Your credit card issuer can lower your credit limit at any time, regardless of how well you manage your account. Issuers might cut credit limits to minimize risk in an uncertain economy, as many cardholders have experienced during the COVID-19 pandemic in 2020.

Reducing the limits may help prevent greater credit problems in the future, which is far more important than a decline in your credit scores. If you find that your scores are lower, focus on paying down your credit card debt to lower your utilization and that will likely help improve your scores.

A bank or credit card issuer can generally lower (or increase) your credit limit at any time as long as it’s allowed in the credit card agreement. One thing they can’t do is lower your credit limit and then immediately slap you with an over-the-limit fee or penalty rate if you happen to exceed the new lower limit.

A credit limit decrease can happen because your spending habits changed, or if your good credit is mixed up with someone else’s bad credit. A sudden decrease in your credit limit can hit when you least expect it, curbing your buying power and potentially lowering your credit score, but you don’t have to let it stand.

When a card company lowers a limit, it’s usually either because the card was dormant (not making them any money but representing a liability) or because the cardholder was in financial distress (perhaps maxing out the existing limit or paying late).

How to reduce your credit limit in 5 steps

1. Find out what your current credit limit is.
2. Determine your current balance on the account.
3. Make a calculated decision regarding how much you want to lower your line of credit.
4. Contact the lender.
5. Opt-out of any automatic account review programs.

With FICO scoring models, credit utilization accounts for 30% of your credit score. So, when you lower your credit card utilization, your credit score might increase.