Your credit card company has reduced your credit limit. This quickly puts you in a difficult position. This credit reduction can damage your credit. It can also render your credit card useless for further charges.
If your credit card has reduced your credit limit, then it is likely your credit score has already dropped. The dropping of your credit score can happen very fast. When your score drops, it tends to drop quickly.
If you cannot trace the source, your credit score most likely dropped by accumulating too much total debt. Otherwise, your credit score may have simply dropped by late or missed payments. Regardless of the source, it is important to realize that your credit limits are most likely decreasing due to a drop in credit score.
Pay down your credit card immediately if your credit limit has been dropped. You want to pay down the credit card to keep the balance as far from the new limit as possible. This will protect you from the further reduction in credit score. It will also keep your credit card in a useful status where you can continue to make changes.
Credit card terms are brutal. If you are unable to pay down your card quickly, you are now stuck with a high-interest loan. It is only a loan now: the benefits of your credit card are now fully non-functional. Late fees and overage fees can also quickly bring down your credit score. They can also make the credit card difficult or impossible to repay.
Credit cards can be permanently stuck in this non-operational status. The high balances are now only hurting your credit. If you have credit cards in this status, you should strongly consider filing for bankruptcy. Your credit score and your ability to get new credit will quickly improve if you file for Chapter 7 bankruptcy. Bankruptcy can also protect you from lawsuits if you are now unable to pay back the debt.