Quote:
Originally Posted by BigBen
When that happens, are they getting hit with over-limit fees until it's down to the new balance amount?
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Likely no ... typically they won't reduce one's credit limit below what one already owes plus a small amount above that.
Ie. if one has a credit limit of $10,000, but is already carrying a balance of say $7,300, they'd likely reduce the credit limit to say around $7,500.
If they seek to reduce one's limit below what they already owe, they will typically cancel the card, though they'll still mail out monthly statements as usual for payments.
Ron