topic Re: Citibank lowering limits? in Credit Cards

Citibank lowering limits?

KatT1 — Tue, 17 Mar 2020 23:04:57 GMT

I've had 2 citibank cards for a few years, Citi Diamond ($3600 lim, 2014) and Citi Double Cash ($1000 lim, 2018). Never missed a payment on either one, carried a balance alot of times but paid them both off in February. Today I log in and they've lowered my limits to $500 and $300. I called to inquire because I've never gotten a letter or anything and the rep tells me "they just did it today and you'll get a letter" I don't get it, my credit score is probably better than it was when I got the cards and my utlization of all cards is certainly lower. Why do they do this after you pay them off? Has anyone else had this happen recently? I've seen other posts but they're a few years old. Seriously, my credit is better now than when I got the cards. Any insight? I was actually going to close the double cash one anyway but was planning to keep the diamond one because it had a decent limit and helps manage my utlization but no point to do that now, it just irks me that they lower the limit so drastically when it's got a zero balance.

Re: Citibank lowering limits?

Anonymous — Tue, 17 Mar 2020 23:37:19 GMT

At least you're able to log in, I've tried a few times since Friday of last week and keep getting this messege.

We're sorry. Citi.com is temporarily unavailable.

Re: Citibank lowering limits?

NRB525 — Tue, 17 Mar 2020 23:41:43 GMT

OP what are your FICO 8 scores?

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 00:35:38 GMT

Here is a general answer since we don't yet know your scores, balances, util, etc.

They view your risk too high for the current economic conditions. It may have nothing to do with what you did or didn't do. This is standard among all issuers. For instance, my new Chase card has language in the agreement that states that they can close my account, not because of something I did or didn't do, but because their business needs have changed. I can have my account closed for using it and paying on time.

A lot going on out there and there is uncertainty for now. They feel a little safer with you having smaller limits. You might be able to get a more streamlined answer once you provide scores, balances, and utilization.

Re: Citibank lowering limits?

blindambition — Wed, 18 Mar 2020 00:45:24 GMT

OP, some DP would be helpful in assisting. The climate is very different. Some lenders seem to be showing signs of concern. CLD reported on Amex, Sync, Comenity. The letter will help, but at least you can rebuild limits with SP CLI in future.

Re: Citibank lowering limits?

Remedios — Wed, 18 Mar 2020 01:03:01 GMT

@Anonymous wrote:
Here is a general answer since we don't yet know your scores, balances, util, etc.

They view your risk too high for the current economic conditions. It may have nothing to do with what you did or didn't do. This is standard among all issuers. For instance, my new Chase card has language in the agreement that states that they can close my account, not because of something I did or didn't do, but because their business needs have changed. I can have my account closed for using it and paying on time.

A lot going on out there and there is uncertainty for now. They feel a little safer with you having smaller limits. You might be able to get a more streamlined answer once you provide scores, balances, and utilization.

I hate to break this to you, but every T&C states card be closed at any time for any reason by the lender.

By applying and having a product, you still dont own it, hence "lending"

The only *thing* that's yours is balance till you pay it.

Lenders typically do not close unless they detect real or percieved risk, or cards go unused for extended period of time.

If OP carried balance for extended period of time, then paid them off, it's delayed balance chasing, done to prevent running up balance again.

Good news is, cards are not closed.

With some use and PIF, they have potential to grow again. I would not carry any balance on them for the time being.

Re: Citibank lowering limits?

seattletravels — Wed, 18 Mar 2020 01:07:56 GMT

Agreed. It sounds like balance chasing.

Re: Citibank lowering limits?

Remedios — Wed, 18 Mar 2020 01:16:26 GMT

This is something Discover does frequently. They will lower limit once cards are paid off, but once dust settles, they grow again.

Balance chasing while balance is present tends to happen as maxed out cards are being paid down, albeit slowly.

Borderline maxed and slow to pay down cards (or run up balance, pay over longer period of time, run them up again) get breaks put on them this way.

Also, another thing to be considered is having multiple cards by same lender, all with balance. If balance needs to be carried for whatever reason, it should be on one card, while the other one(s) sees some use (even if minimal) but paid in full every month.

It's less indicative of financial distress if other accounts are maintained well by consumer while balance is carried on one of their cards.

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 01:30:40 GMT

@Remedios wrote:
@Anonymous wrote:
Here is a general answer since we don't yet know your scores, balances, util, etc.

They view your risk too high for the current economic conditions. It may have nothing to do with what you did or didn't do. This is standard among all issuers. For instance, my new Chase card has language in the agreement that states that they can close my account, not because of something I did or didn't do, but because their business needs have changed. I can have my account closed for using it and paying on time.

A lot going on out there and there is uncertainty for now. They feel a little safer with you having smaller limits. You might be able to get a more streamlined answer once you provide scores, balances, and utilization.
I hate to break this to you, but every T&C states card be closed at any time for any reason by the lender.
By applying and having a product, you still dont own it, hence "lending"

The only *thing* that's yours is balance till you pay it.

Lenders typically do not close unless they detect real or percieved risk, or cards go unused for extended period of time.

If OP carried balance for extended period of time, then paid them off, it's delayed balance chasing, done to prevent running up balance again.
Good news is, cards are not closed.
With some use and PIF, they have potential to grow again. I would not carry any balance on them for the time being.

You are not breaking anything to me lol. Don't worry, not broken. That's why the statement was a, "for instance", and "this is standard among all issuers".

Card issuers rebalance risk, especially when economic times change. So ANYONE is subject to AA, no matter your spending and payment patterns.

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 02:00:43 GMT

@Remedios wrote:
This is something Discover does frequently. They will lower limit once cards are paid off, but once dust settles, they grow again.
Balance chasing while balance is present tends to happen as maxed out cards are being paid down, albeit slowly.
Borderline maxed and slow to pay down cards (or run up balance, pay over longer period of time, run them up again) get breaks put on them this way.

Also, another thing to be considered is having multiple cards by same lender, all with balance. If balance needs to be carried for whatever reason, it should be on one card, while the other one(s) sees some use (even if minimal) but paid in full every month.
It's less indicative of financial distress if other accounts are maintained well by consumer while balance is carried on one of their cards.

Interesting. Kind of like when they are uncomfortable with it, they tell everyone to please stand behind the line, they signal to move behind the line, and after a while, they're ok with you being over the line, until they become uncomfortable with it again.

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 13:08:26 GMT

Just signed into my SYW Card (Sears old Mastercard) slashed from 3,000 to 1,800 this morning...large purchase of $2500 with 12 months 0 interest..balance is at 1675.00 with 7 months still on 0 interest...My Shell Mastercard is at 0 bal and CL 2,000 and BestBuy Visa 0 bal and CL of 5,000. No AA so far on my other Citicards...I hope no further action is taken, but we will see in the near future....Just a FYI...

Re: Citibank lowering limits?

seattletravels — Wed, 18 Mar 2020 13:24:29 GMT

Interesting. In light of current events, I wonder if they're hedging their bets and taking other factors like job industry and income into consideration for the moment.

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 13:34:04 GMT

@seattletravels wrote:
Interesting. In light of current events, I wonder if they're hedging their bets and taking other factors like job industry and income into consideration for the moment.

That was always what I thought they did from day 1, regardless of the economy. If you are in the restaurant business as opposed to healthcare right now, there is certainly more risk of job loss in the restaurant industry.

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 13:51:57 GMT

Just now checked mine. OK, for now. Yesterday, I did notice I had to re-sign up for the FICO score which I thought was strange.

Citi cut my line too

Anonymous — Wed, 18 Mar 2020 23:26:40 GMT

On my bestbuy card went from 5k to 1k. It was paid off and the most I utilized was around half of the credit line. Maybe they are cutting lines that aren't used to the fullest while protecting their assets during this crazy time.

no big deal but seems like citi is cutting lines more than anyone else from what I've seen

Re: Citibank lowering limits?

Anonymous — Wed, 18 Mar 2020 23:30:12 GMT

They cut my bestbuy card from 5k to 1k. Zero balance but i did use it each month. Most I charged at one time was around 2500 and paid that off within 2 months so didn't carry it long.

Re: Citibank lowering limits?

seattletravels — Thu, 19 Mar 2020 00:21:03 GMT

@Anonymous wrote:
@seattletravels wrote:
Interesting. In light of current events, I wonder if they're hedging their bets and taking other factors like job industry and income into consideration for the moment.
That was always what I thought they did from day 1, regardless of the economy. If you are in the restaurant business as opposed to healthcare right now, there is certainly more risk of job loss in the restaurant industry.

Yeah it makes a ton of sense.

Re: Citi cut my line too

blindambition — Thu, 19 Mar 2020 00:38:57 GMT

Sorry about the CLD. At least it wasn't closed. I'd say Sync, Amex, and Citi. Many factors go into their decisions. Buckling up just like us!!

Re: Citi cut my line too

seattletravels — Thu, 19 Mar 2020 00:52:19 GMT

They're on a roll, for sure.

Re: Citibank lowering limits?

Anonymous — Thu, 19 Mar 2020 00:54:04 GMT

I'm sure glad I paid off a couple BT balances the in last couple months. Though I still have two that just started, so I hope they're with FI's that aren't too nervous about it.