Consumers have a few options when their credit card company lowers their credit limit. Credit card companies typically lower credit limits when consumers are delinquent in their payments or have maxed out the limit of their card. They may also lower your limit if you live in an area that has been hit by an economic downturn, are self-employed in an industry hit by a recession, or are behind on other bills and payments.

The closer your debt is to your credit limit, the more this fact negatively affects your credit score. One option if your credit limit is too low, and your debt is too high, is to start paying off your debt and thus lower the debt-credit ratio. Consumers may want to consult a debt counselor for ways to pay off high debt. You could also make payments online before the monthly statement is due, in order to reduce interest charges. Another option is to transfer your credit card balance to another card with a lower interest rate.

If you have good credit and a flawless payment history, you have some other options.

You may want to call the credit card company and negotiate a higher limit. Speak to a supervisor, or call several times to speak to various customer service representatives who may be able to help. You can also shop around for other credit cards that have a better policy. Consult LowerMyBills.com or CreditCards.com to compare credit card offers and find one that might grant you a higher limit.