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WalletHub tracked the drops from Q2 2024 to Q2 2025redit limits dropped year over year in 46 out of 50 states as of Q2 2025. Decreases ranged from .5% to 16%. 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.
"Residents of Wyoming had the largest year-over-year decrease in their credit limits," said Chip Lupo, WalletHub analyst. "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."
Largest credit limit decrease
1. Wyoming
2. Alaska
3. Vermont
4. Delaware
5. Colorado
6. South Carolina
7. Washington
8. Oregon
9. New York
10. Virginia
Smallest credit limit decrease
41. Pennsylvania
42. Ohio
43. Montana
44. Alabama
45. Kentucky
46. New Mexico
47. North Dakota
48. Indiana
49. New Hampshire
50. Oklahoma
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 at risk for delinquency.