Report: Credit limits are falling in most states.
WalletHub found declines in 36 states, with Utah, Minnesota and Montana ranking highest as consumers face tighter access to credit.
Credit limits fell in 36 states over the year ending in the second quarter of 2026, according to a new WalletHub analysis, a broad pullback that could leave consumers with less borrowing power and, in some cases, higher credit utilization.
The analysis compared changes in average credit limits per user in all 50 states between the second quarters of 2025 and 2026. Utah ranked first for the largest decreases, followed by Minnesota and Montana. The rankings incorporated both the size of credit limits and how much they changed.
The findings point to a widespread tightening of available credit, though the experience varied considerably by state. WalletHub analyst Chip Lupo said average credit limits declined in 36 states, with year-over-year decreases ranging from about 0.1% to nearly 13%.
“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,” Lupo said. Inflation can also push consumers to charge more, raising utilization and increasing the risk of delinquency, he said.
Minnesota residents saw the second-largest overall decline. The average credit limit over the 12 months ending in June 2026 was nearly 8% lower than in the previous 12-month period. Limits on new accounts opened in the second quarter were more than 23% lower than on accounts opened a year earlier.
WalletHub also pointed to Minnesota’s above-average growth in credit card debt and the highest rate of credit card delinquency among states as possible contributors.
Montana ranked third. Its average credit limit over the 12 months ending in June was about 13% lower than in the prior year. The state also had relatively low average limits overall: The average limit on cards opened in the second quarter was $4,946, the 20th-highest in the country.
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Utah’s top ranking reflected a different pattern. Residents had some of the highest credit limits to begin with, so even a comparatively smaller percentage decline translated into a substantial loss of borrowing power. WalletHub said the state had the largest share of people experiencing credit limit decreases.
Other states in the top 10 were Nebraska, Georgia, New Mexico, Indiana, Florida, New Hampshire and Connecticut.
Pennsylvania ranked 36th, with a total score of 65.57. Ohio placed 12th, while New York ranked 23rd. At the other end of the list, Alaska ranked 50th, followed by Delaware and Hawaii.
WalletHub based its rankings on four measures: changes in average credit limits for accounts opened in the second quarter of 2026 compared with the same period in 2025; changes in average limits over the year ending in June 2026; and average limits for accounts opened during those respective periods. The data came from WalletHub’s database and was collected as of Sept. 24, 2026.
A lower credit limit can raise a cardholder’s credit utilization ratio — the share of available credit being used — and potentially hurt a credit score. It can also restrict the amount a consumer can borrow for everyday expenses.
The ranking measures changes in credit limits, not the number of consumers whose accounts were reduced or the reasons individual lenders made those decisions.
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
