Report: Credit limits are falling in most states.

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.