Read Your Credit Agreement

• Some credit card agreements contain a clause that states that the creditor can change the credit terms at any time with or without notice. If your credit agreement contains such a clause, you have no legal recourse if the credit card company decides to do this. If your agreement entitles you to 30 days notice, however, your creditor may be in violation of the agreement. Before taking any other action, reread your card agreement to determine whether the creditor violated it or not.
  
  

Contact the Creditor

• Ask the creditor why your credit limit has been lowered. Do not act in a confrontational manner; at this point you are trying to gather information, not dispute the creditor's decision. In any case, the representative who answers the phone probably has no control over the decision and cannot reverse it. It is best just to gather information and decide what to do later. However, in some cases, the representative may offer to re-raise your credit limit. If so, take him up on the offer and consider the issue resolved.
  
  

Change Your Spending Habits

• Credit card companies may lower your credit limit if they are concerned about your spending patterns. For example, if you use a lot of credit on essentials such as grocery items, the company may be concerned that you cannot cover your monthly expenses and may lower your limit to protect itself from possible default in the future. Your creditor should be able to tell you this information when you call to ask why your limit was lowered; if possible, change your spending habits to eliminate the creditor's concerns so that you can obtain a higher limit again.
  
  

Contact Your Attorney

• If you believe your creditor violated the credit agreement or lowered your credit limit for a discriminatory reason, contact your attorney. Your attorney can tell you whether you have a case against your creditor. In addition, attorneys may be able to negotiate with your creditor to restore or raise your credit limit.