Query about credit limit and credit utilization ratio.

[iM23]

1. If I don't use a credit card very often (say, once in 2/3 months), may the credit limit on the card get decreased for lesser usage? (Asking because I read somewhere that it actually happens.)

2. Do the credit bureaus calculate credit utilization ratio for individual cards or they do it both ways - combining all the credit limits and also separately for each card?

 

[Zacobite]

1. If I don't use a credit card very often (say, once in 2/3 months), may the credit limit on the card get decreased for lesser usage? (Asking because I read somewhere that it actually happens.)

2. Do the credit bureaus calculate credit utilization ratio for individual cards or they do it both ways - combining all the credit limits and also separately for each card?

Limit reduction is possible however happens rarely.. Generally when CC is not used.. v v rare occurrence. some banks do it.. but not a very common practice.

utilisation will show for every card and overall.. the overall has a higher weight on the score..