I’m confused if the secured credit limit can be lowered or not. I was initially advised that a secured credit card can only be increased, but it cannot be decreased without cancelling and opening a new account. Does anyone here know?
Hi! Nope it can’t be. A secured credit card has a credit limit of whatever you put into it. If you send $50 for your limit. that will be your limit. if you send $200 more your credit line will be $250. you’ll get that back if you decide to close your card.
@situationtrimming672, Thanks for flagging this. We definitely have processes in place for customers who want to reduce their credit limits. Since the credit limit on a fully secured card is tied to the security deposit, this can be done by withdrawing a portion of the secured funds.
There are a few things to keep in mind, though: the account must remain open, enough security funds must remain to fully cover the card balance, the remaining security deposit must stay above the minimum required for the card, and security fund adjustments are generally limited to once every 12 months. You can try reaching out to support, and they will be able to assist with this. Let’s know how that goes.
One important note: this option is only available for fully secured cards. Partially secured accounts are not eligible for credit limit decreases.
I’m catching up on some threads and saw this! You should know that the deposit reductions @Yeni-Neo is mentioning here are for emergencies and can only be done via the support team 1x / 12 months. This is owing to the credit rules around secured cards.