Your credit card can remain perfectly current while the amount you can borrow suddenly gets smaller. A card issuer can reduce your credit limit on an existing account, which immediately cuts your available credit even if every payment has arrived on time.
That creates a particularly annoying financial problem. The account may look healthy from a payment-history perspective, yet the amount of breathing room on the card can shrink dramatically. Your balance did not have to increase for that to happen. The lender simply changed the size of the credit line behind it.
