Credit limits have dropped the most in these states for 2025, data shows

New data is revealing where credit limits have dropped the most, which can restrict spending and potentially hurt your credit score.

WalletHub analyzed its data to compare the average change in credit limit per resident across all 50 states between 2024 and  2025.

WalletHub compared the 50 states across two key dimensions: average credit limit per user and change in average credit limit per user.

Wyoming has largest decrease in credit card limits

By the numbers:

The data found that residents of Wyoming had the largest year-over-year decrease in their credit limits. 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, Wyoming residents 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.

WalletHub noted that Wyoming’s large average credit limit decrease may be due in part to the fact that it was in the bottom 15 states when it came to income. The state also ranked first in the nation for credit card delinquency, which could further explain why residents are experiencing more credit limit decreases.

Meanwhile, Alaska ranked second with a nearly 12% drop, the third-largest decrease. That kind of plunge left residents with far less borrowing power over the year.

Alaska ranked among the bottom 10 states for income, placing 44th in the nation. Having lower income levels can make it harder for residents to manage their credit, which in turn may lead banks to reduce credit limits, WalletHub explained. Alaska residents also had big recent increases in credit card delinquency, another important factor in decreasing credit limits.

What they're saying:

"The average credit limit decreased in 46 of the 50 states year-over-year as of Q2 2025, with the decrease ranging anywhere from around 0.5% to over 16%," Chip Lupo, a WalletHub analyst, said in a statement. "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 more at risk for delinquency."

States with largest decreases in credit card limits

1. Wyoming
2. Alaska
3. Vermont
4. Delaware
5. Colorado
6. South Carolina
7. Washington
8. Oregon
9. New York
10. Virginia

See the full report here.

Analysis of the top cities with credit card delinquencies

Dig deeper:

Another analysis by WalletHub conducted earlier this year found that Fremont, California, Plano, Texas, and Seattle were at the top of the list of areas seeing a sharp increase in credit card delinquency rates.

Fremont, California has seen the biggest jump in credit card delinquency, with residents late on almost 29% more credit card tradelines in the first quarter of 2025 than the first quarter of 2024. 

RELATED: These cities have the highest credit card delinquencies in the U.S., study shows

Big picture view:

According to recent Bankrate survey, nearly half of Americans are carrying credit card debt.

According to the New York Fed, Americans hold a collective $1.2 trillion in credit card debt. Of those debt holders, 64% say they’ve delayed or avoided other big financial decisions because of their credit card balances