How can I avoid a credit limit decrease?

@jaron 

There are several steps you can take to avoid a credit limit decrease:

1. Pay your bills on time: One of the reasons credit limits are reduced is due to late or missed payments. Make sure you always pay at least the minimum amount due on time to maintain a good payment history.
2. Keep a low credit utilization ratio: Your credit utilization ratio is the amount of credit you use compared to the total credit available to you. It is recommended to keep your credit utilization ratio below 30%. Lower credit utilization indicates responsible borrowing and can help avoid credit limit decreases.
3. Use your credit card regularly: Credit card companies may reduce credit limits on accounts that are consistently inactive. To avoid this, use your credit card regularly for small purchases and make sure to pay off the balance on time.
4. Avoid cash advances or high-risk transactions: Cash advances typically have higher interest rates and fees, and they can indicate financial distress to the credit card company. Avoid using your credit card for cash advances or other high-risk transactions that may raise concerns for the lender.
5. Keep a good credit score: Maintaining a good credit score is crucial in avoiding credit limit reductions. Monitor your credit report regularly, dispute any inaccuracies, and engage in responsible credit habits to maintain a good credit score.
6. Communicate with your credit card issuer: If you anticipate an issue that may affect your ability to pay your credit card bills on time, or if you have concerns about your credit limit, reach out to your credit card issuer. Communicating early can help you find a solution.
7. Consider requesting a credit limit increase: If your credit card issuer does reduce your credit limit, consider requesting a credit limit increase once your financial situation improves. This can help you restore your overall credit limit.