topic Re: Credit Limit Lowered by Citibank with no reason in Credit Cards

Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 15:53:50 GMT

I recently received a notice from Citibank that my credit card limit was being decreased from $25K to $17K. I barely ever use the card, I've been a member since 2010, always paid on time so I am confused. I had not used the card at all until they sent me a balance transfer offer with a 0% interest rate, and I transferred over 5K of debt from a store credit card that I owed. They thought I was credit worthy of the transfer but not of the credit limit I had. I have two other cards, one which has a zero balance and one which has about 10K on it. I pulled my credit report and nothing new showed up. I have never been late on any payment, paid off two car loans, and have student debt, but I've had that for years. I called Citibank to try to find out why they reduced the rate and they kept saying "equifax required us to do it." I said they mandated you to reduce my available credit, you have no discretion in the matter, and the response was yes, it was due to change on your credit report, except there was no change on my credit report. I am tempted to close but I know that's not the right thing to do. I will pay it off with my bonus in a few months and leave the account open. But it concerns me that this can just be done with no recourse? I earn 150K a year and my rent is around $1000K.

Re: Credit Limit Lowered by Citibank with no reason

HeavenOhio — Mon, 14 Jan 2019 16:23:39 GMT

Welcome, @Anonymous.

This is the first time I've heard of AA (adverse action) because "Equifax required us to do it." You should be getting a letter in the mail that'll hopefully cite a more plausible reason.

What's the status of the balance transfer on the card? Was it paid off well in the past, or are you still paying toward it?

Re: Credit Limit Lowered by Citibank with no reason

UpperNwGuy — Mon, 14 Jan 2019 16:37:40 GMT

I suspect that the $10,000 balance on your other card is what triggered the adverse action. That's a problem you need to fix.

Also, the "change" in your credit report means that it changed since the last time Citibank reviewed it, and that may have been a few years ago when you originally applied for their card. When did the $10,000 and the $5,000 balances occur?

Re: Credit Limit Lowered by Citibank with no reason

bourgogne — Mon, 14 Jan 2019 16:42:41 GMT

hi, sorry this happened. with no reason yes, but it did happen for a reason. not a drop of coffee in me but how was your card use before the bt? if it was light you went up to ~20% utilization on that card. that could easily be the trigger. I suppose I differ on most on this board, I am a 100% transactor. I believe that balance transfers, cash advances and making payments even if its a sweet no interest offering carry risk. if I went out of my `transactor' mode my results could vary. last year cap1 did a $37K > $10K move on me overnight. reason was I don't use the card therefore I dont need the limit. makes sense, the problem is that when aa happens it leaves a bad taste in ones mouth or at least it did for me. get some cards from some better lenders; amex, chase and move on would be my suggestion

edit, just re-read your post, you have $10K owning on another card that has a limit of what? utilization is what triggered your situation, I am sure of it

Re: Credit Limit Lowered by Citibank with no reason

fuzzle — Mon, 14 Jan 2019 16:45:27 GMT

Cards that are barely used are at risk of having their limits cut. Might have stumbled in a trap in this case if the balance transfer to an unused account raised a red flag

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 17:29:20 GMT

I got the citi card in 2010. That 10K balance was more than that significantly when they approved me for the card, and it was there a few months ago (approximately slightly more) when they gave me the balance transfer. So it's not as if something has "changed" in fact I have less debt now than when they took me on. That's why I don't get it. It's actually making me paranoid that something is in my credit history that happened recently that I cannot find, but I have ran all three of my reports and there have been zero changes, no delinquent payments, nothing new taken out as loans or cards, no balance increases?

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 17:31:29 GMT

I know that response made zero sense and that's why I kept fighting with them about it. I did get a letter it says "ulitization of credit on other accounts," but again as I stated I have not utilized any more credit on any of my accounts. The debt that was there is less than when Citi approved me for the card, and certainly less than when they offered me the balance transfer. The agent kept saying look at your credit report and I said Ms. I have all three up right now, nothing changed.

I have about $2500 left to pay off on the balance transfer.

Re: Credit Limit Lowered by Citibank with no reason

SouthJamaica — Mon, 14 Jan 2019 17:32:14 GMT

@Anonymous wrote:
I recently received a notice from Citibank that my credit card limit was being decreased from $25K to $17K. I barely ever use the card, I've been a member since 2010, always paid on time so I am confused. I had not used the card at all until they sent me a balance transfer offer with a 0% interest rate, and I transferred over 5K of debt from a store credit card that I owed. They thought I was credit worthy of the transfer but not of the credit limit I had. I have two other cards, one which has a zero balance and one which has about 10K on it. I pulled my credit report and nothing new showed up. I have never been late on any payment, paid off two car loans, and have student debt, but I've had that for years. I called Citibank to try to find out why they reduced the rate and they kept saying "equifax required us to do it." I said they mandated you to reduce my available credit, you have no discretion in the matter, and the response was yes, it was due to change on your credit report, except there was no change on my credit report. I am tempted to close but I know that's not the right thing to do. I will pay it off with my bonus in a few months and leave the account open. But it concerns me that this can just be done with no recourse? I earn 150K a year and my rent is around $1000K.

I'm sure the reason they did it is that you "barely ever use[d]" it. If you barely ever use it, you are not profitable to them. Banks are required to maintain reserves based in part on credit card limits, so customers who have high limits that they barely use are among the candidates for credit limit decrease. I'm sure your contract with Citibank gives them the right to reduce, or even eliminate entirely, any credit limit they have extended on a revolving account.

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 17:34:25 GMT

I barely ever used the card prior to making the balance transfer. I think maybe once or twice in a few years for purchases under $100. I did not think of that, that the utilization of their credit that they offered me could trigger something because I had not used much of it before, that's not cool at all! Thanks for the tip on that though I will no better next next. The other card has a 40K limit on it, but here's the thing the 10K balance is lower than when they gave me the card, and much lower than when they offered me the balance transfer. That's why it makes no sense to me.

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 17:35:12 GMT

I think I did stumble into that trap. Welp won't fall for that again and won't ever bank with them again.

Re: Credit Limit Lowered by Citibank with no reason

imaximous — Mon, 14 Jan 2019 17:35:27 GMT

If you just made the balance transfer, it’s possible that the $5k is showing on 2 cards currently. The store card might’ve not updated the new low balance to the CRAs yet. That would increase your current outstanding balances till updated. Not sure if that’s the reason for the CLD, but that could be the recent change.

Re: Credit Limit Lowered by Citibank with no reason

HeavenOhio — Mon, 14 Jan 2019 17:37:31 GMT

How fast have you been paying these balances off?

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 18:08:27 GMT

@Anonymous wrote:
I earn 150K a year and my rent is around $1000K.

If you are paying $1M in rent a month, no wonder they reduced the CL, get a cheaper place!

(My nomination for unhelpful comment of the day) But as an aside, whenever "no reason" appears in a subject line, closer analysis usually shows there is one (which, as in this case, may be different from what you are told.) Banks don't take AA for no reason, possibly a mistake, but they do think they have a reason.

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 18:19:38 GMT

In the past year or so pretty fast. I am really trying hard to get rid of the debt. I have a much better job now, and I now live with my fiance so we expense share and that really helps.

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Mon, 14 Jan 2019 18:20:46 GMT

OMG yes sorry lol no that was one thousand a month in rent. I think that's actually what's irking me, that I do not know the reason why they did it and I cannot get an honest answer. It sucks when you are trying to do the right thing and attack your debt, then you just get knocked back down.

Re: Credit Limit Lowered by Citibank with no reason

blindambition — Mon, 14 Jan 2019 18:29:45 GMT

There have been some very good DP given as to why the CLD. Sorry about the loss, but it prepares you to be aware of current climate.

I have taken to using my SD CO QS to avoid closure or CLD. I’ve decided to avoid apps this year. While I usually PIF, I’m also making sure nothing reports with more than 5% UTI. Lenders are skittish right now.

Re: Credit Limit Lowered by Citibank with no reason

CreditInspired — Mon, 14 Jan 2019 18:54:14 GMT

Okay, As everyone else has said, something is amiss—there is a reason for the CLD. When I first read your post, I immediately thought too it was because you weren’t using the card.

So treat me like I’m a 5th grader; and if you don’t mind, itemize everything for me because it’s difficut for me to decipher the generalities. So if you can list your CCs, CLs, and UT for each, it may help us all pinpoint exactly where the problem lies.

Thanks

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Tue, 15 Jan 2019 02:10:59 GMT

Who does CitiBank pull through to check credit like this?

Re: Credit Limit Lowered by Citibank with no reason

AverageJoesCredit — Tue, 15 Jan 2019 02:36:18 GMT

Once you have a card with Citi they can sp your reports to verify how you are doing with your other cards. All lenders can do this.

Re: Credit Limit Lowered by Citibank with no reason

Anonymous — Tue, 15 Jan 2019 04:40:19 GMT

I have a bloomingdales CC by Citi and they lowered my Cl just yesterday. I never paid or missed a payment. I called them and they claimed that they randomly run credit and since mine dropped ( due to xmas cards were used) they auto decrease. I was so upset, I mean the debt I built during christmas is 85% paid off already. I didn't like that at all from Citi, I think I will stick to not using this card as much.