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Q: My bank lowers my credit card limit, even though I always pay on time. Does this hurt my credit score
A: Unfortunately, yes. Lately, many lenders have reduced credit limits, even for consumers with high credit ratings. And the balance report you wear your available credit is an important factor in calculating your credit score. Sometimes a credit limit is cut due to underuse rather than default. So if this is a concern, be sure to use your old credit card, or the card with the higher limit, from time to time. According to the limit and the balance you carry, you may also be able to offset the negative impact by paying more than your balance. Or, if necessary, it may be wise to open a new credit account with a high limit.
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