Tuesday, October 28, 2025

Money Matters - States Where Credit Limits are Dropping the Most

 Credit limits dropped year-over-year in 46 out of 50 states as of Q2 2025. To shed light on where residents may be facing the biggest financial strain, the personal-finance company WalletHub released its report on the States Where Credit Limits Decreased the Most.

 
Largest Credit Limit DecreaseSmallest Credit Limit Decrease
1. Wyoming41. Pennsylvania
2. Alaska42. Ohio
3. Vermont43. Montana
4. Delaware44. Alabama
5. Colorado45. Kentucky
6. South Carolina46. New Mexico
7. Washington47. North Dakota
8. Oregon48. Indiana
9. New York49. New Hampshire
10. Virginia50. Oklahoma
 
For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/states-where-credit-limits-decreased-the-most/131198



The average credit limit decreased in 46 of the 50 states year-over-year as of Q2 2025, with the decrease ranging anywhere from around 0.5% to over 16%. 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. 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.

“Residents of Wyoming had the largest year-over-year decrease in their credit limits. The average person’s credit limit over the 12-month period ending in June 2025 was around 16% lower when compared to the previous 12-month stretch. In addition to a big overall decrease over the past year, Wyomingites also had the third-largest decrease in the average credit limit on credit cards opened specifically in Q2 2025, compared to in Q2 2024. The average credit limit was nearly 22% lower.”

- Chip Lupo, WalletHub Analyst 
 

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