Minneapolis-based Target is facing slower sales and is tightening lending standards in its credit card business.
At its annual investor meeting, Target said it is lowering credit card limits for customers who live in high-risk areas such as California that have been hit hard by the housing slump.
In addition, the retailer is tightening standards for inactive cardholders, and it is being more aggressive collecting money from customers behind on payments.
Target also said it will open stores at a slower pace. But executive Kathee Tesija said Target will still compete aggressively with rival Wal-Mart on price.
"We remain keenly focused on ensuring our prices match Wal-Mart's on all identical and similar products in local markets, something we have been doing for well over a decade," Tesija said.
The company announced earlier this month that its same-store sales for September fell 3 percent and that third-quarter profits may be below Wall Street estimates.