Credit card application, the basics
Many banks are reevaluating the credit histories and scores of customers who currently have credit cards. They have the right to reduce limits for those who have spotty payment histories or high balances that are consistently met with only minimum payments. For those who only pay the minimum required each month, an increase in rates could mean higher payments. Banks may even cancel some credit cards that have been inactive for over 12 months. Lower credit limits on credit cards can affect your credit score.