Here's where credit limits decreased the most in the US (and why that's bad)

Credit limits are dropping for people in most states, and that could spell bad news for your credit score. 

According to a new WalletHub analysis, average credit limits decreased in 36 out of 50 states year-over-year, WalletHub says, with the largest decrease nearing 13%. 

Why do credit limits decrease? 

What they're saying:

"A variety of factors can result in credit limit reductions, such as big increases in credit card debt, delinquency on that debt, or a decline in credit score or income," WalletHub analyst Chip "Inflation also plays a role, as it forces people to charge more to their credit cards, raising their credit utilization and putting them more at risk for delinquency."

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Dig deeper:

A spike in your credit utilization ratio can cause a notable dip in your credit score, and delinquent payments will also be reported to credit bureaus. 

Where credit limits decreased most

Local perspective:

Here’s a snapshot of which states saw credit limits decrease the most (and least): 

WalletHub says Utah topped the list for the biggest credit limit decrease, even though Utah didn’t report the highest year-over-year percentage drop. Because Utah residents had among the highest credit limits in the nation, "people still lost more borrowing power despite a relatively smaller percentage decrease."

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"Utah’s credit limit decreases stand out even more given the state’s relatively strong financial position," WalletHub said. "Its high income generally gives residents more financial flexibility when managing credit."

In Minnesota, which ranked No. 2 for the biggest credit limit decreases, the average credit limit for Minnesota residents dropped 8% from June 2025 to June 2026. In Montana, that average was 13%.