topic Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL. in Credit Cards

I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

vantageman — Sat, 25 Oct 2025 18:17:32 GMT

I had $72,674.02 in debt across 8 credit cards:

Capital One Venture
Chase Freedom
Citi Double Cash
Amex Blue
Capital One Silver
Discover IT
Wells Fargo
Merrick Bank

Account details:

Oldest account: 17 years, 9 months
Newest account: 1 year, 8 months
Average age: 10 years, 11 months
No late payments my entire life, no bankruptcies, or no other lines of credit (no auto loans, no mortgages, or personal loans)

I’ve had my Citi Double Cash card for over 11 years. I used to do all my banking with Citi, but about 12 months ago I stopped because they started charging monthly fees on checking accounts unless you met certain balance requirements. I don’t trust banks and generally keep very little money in them.

Two weeks ago I paid off a large portion of my credit card debt. I basically paid off all my cards except my Merrick Bank card, which still has $16,000 in revolving debt. I plan to pay off Merrick Bank in full after the new year. However, After I made these payments, Citi drastically reduced my credit limit on my Double Cash card from $17,000 to only $300.

Most of my payments have not been reported to the credit bureaus yet. I have been in the Garden for 1 year 8 months, When I reach 2 years (4 months from now) with no hard pulls, I plan to apply for another card with a 0% introductory rate or balance transfer, most likely with Bank of America. Or I was hoping CITI would offer me a respectable balance transfer offer after I paid off Merrick Bank, but now Citi dropped my CL so much the Citi Double cash card is useless to me now.

I’m concerned about why Citi dropped my credit limit from $17,000 to $300 after paying debts. Will it increase again? I need suggestions or insight please. How long does it take for payments to be reported to credit bureaus? And when they do will my credit limit with Citi rebound back to $17,000?

PS: I have not updated the info in my signature in many years, I will when I have time.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

JoeRockhead — Sat, 25 Oct 2025 18:25:59 GMT

@vantageman wrote:
I had $72,674.02 in debt across 8 credit cards:
Capital One Venture
Chase Freedom
Citi Double Cash
Amex Blue
Capital One Silver
Discover IT
Wells Fargo
Merrick Bank
Account details:
Oldest account: 17 years, 9 months
Newest account: 1 year, 8 months
Average age: 10 years, 11 months
No late payments my entire life, no bankruptcies, or no other lines of credit (no auto loans, no mortgages, or personal loans)
I’ve had my Citi Double Cash card for over 11 years. I used to do all my banking with Citi, but about 12 months ago I stopped because they started charging monthly fees on checking accounts unless you met certain balance requirements. I don’t trust banks and generally keep very little money in them.

Two weeks ago I paid off a large portion of my credit card debt. I basically paid off all my cards except my Merrick Bank card, which still has $16,000 in revolving debt. I plan to pay that off Merrick Bank in full after the new year. However, After I made these payments, Citi drastically reduced my credit limit on my Double Cash card from $17,000 to only $300.

Most of my payments have not been reported to the credit bureaus yet. I have been in the Garden for 1 year 8 months, When I reach 2 years (4 months from now) with no hard pulls, I plan to apply for another card with a 0% introductory rate or balance transfer, most likely with Bank of America. Or I was hoping CITI would offer me a respectable balance transfer offer after I paid off Merrick Bank, but now Citi dropped my CL so much the Citi Double cash card is useless to me now.

I’m concerned about why Citi dropped my credit limit from $17,000 to $300 after paying debts. Will it increase again? I need suggestions or insight please. How long does it take for payments to be reported to credit bureaus? And when they do will my credit limit with Citi rebound back to $17,000?

PS: I have not updated the info in my signature in many years, I will when I have time.

Citi's concern was clearly the amount of debt you were carrying with them and/or other lenders. The only thing worse would have been if they also closed your account. Cutting you down to $300 says they were close. As for reporting your payments and new balances, Chase for example will off cycle report when a balance is paid to zero, most other lenders have a certain date they report to the bureaus which is usually shortly after your statement date.

You could reach out to Citi to see if they would reconsider the CLD

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

learningtheropesofcredit — Sat, 25 Oct 2025 22:44:05 GMT

@vantageman

First off, congrats on paying off a large portion of your debt! That’s a huge win and shows a lot of discipline. Now, let's dive into your Citi situation and broader questions.

Why Did Citi Drop Your Credit Limit?

It’s frustrating, I know, but this actually happens quite a bit in the credit world. The general reasons why Citi (or any bank) might reduce your credit limit after you’ve paid off a significant amount of debt include:

Recent Changes in Spending Behavior: You mentioned stopping your banking with Citi a year ago, and also that you paid down a large chunk of debt. If there’s a significant drop in your spending or your balance on a card, banks sometimes adjust credit limits as a safety measure, assuming you might be a lower-risk customer who doesn’t need such a high limit.
Risk Assessment Post-Payment: Some issuers, including Citi, take a look at overall utilization trends. When you pay off a substantial amount of debt, they might assume you’re less reliant on credit and adjust limits accordingly. This can sometimes be a sign of a shift in the way they assess your risk, particularly if they’re seeing less activity.
Account Inactivity: Since you stopped using Citi’s banking products, they might have considered your relationship with them to be less active. Credit card issuers often reduce credit limits on accounts that don’t show frequent use. They might think you’re less likely to use the card regularly, and lower the limit accordingly.
Credit Score or Report Changes: Even though you've made payments, if your credit score has recently dropped (or other accounts have increased balances), Citi might have recalibrated your limit as a defensive move. It's worth checking your credit score and report for any recent shifts.

Will Your Credit Limit Rebound?

Unfortunately, there’s no clear-cut answer. Here’s why:

Credit Limit Increases Are Not Automatic: Banks are not obligated to raise your limit after you’ve paid down debt. They might increase it if they see you're back to using the card and if your payment history remains solid. Sometimes, banks only consider credit limit increases on an account after a period of consistent, responsible use (say, 3-6 months of paying off your balance in full each month).
Citi’s Policy on Credit Limits: Each issuer has its own policies when it comes to raising or reducing limits. In Citi’s case, they may evaluate your spending behavior, income, and how you’ve been managing other accounts before considering any limit adjustments. Since the card is still in good standing (no late payments, etc.), there’s a possibility they might offer a limit increase if you ask, especially if you demonstrate a steady payment history after you pay off Merrick Bank. However, there’s no guarantee, and it may not go back to $17,000 quickly.
If You Apply for a New Card: When you hit that two-year mark and apply for a new card, that could give your credit report a boost (if the new card is approved with a solid credit limit). If you’re hoping for a balance transfer offer from Citi, it might still be possible, but the reduced credit limit could be an obstacle. I’d suggest calling Citi to inquire if they can review your account for a credit limit adjustment, especially after paying off Merrick Bank.

How Long Does It Take for Payments to Show Up on Your Credit Report?

Credit card issuers typically report your payment history to the credit bureaus once a month, usually at the end of your billing cycle. After that, it can take a few days for the updates to reflect on your credit report.

Timing: It might take 30-45 days after making a large payment for the new balances to be reported. The payments themselves show up immediately on your card statement, but the updated balances and credit utilization don’t usually show up on your credit report until the next reporting cycle.

Next Steps for Your Strategy

Contact Citi: Consider calling Citi to ask why they reduced your limit and if there’s any possibility of a limit review after you’ve paid off Merrick. While there's no guarantee of reinstatement, it can’t hurt to ask and explain your situation, especially if you’ve been a long-time, responsible customer.
Monitor Your Credit Utilization: Until those payments report and your credit utilization drops, try to avoid using any of the high-utilization cards if possible, to keep your credit score from taking a dip. Utilization is one of the biggest factors in credit scoring.
Bank of America Card: If you’re considering applying for a new card with a 0% intro APR or a balance transfer, be sure to check your credit score beforehand. You might also want to check out cards from Chase or even American Express, depending on the offers available.
Keep an Eye on Merrick Bank: Since Merrick Bank is still carrying a balance, paying it down as you plan will reduce your overall utilization, which should help your credit score. When you’re ready to tackle this debt, paying it off will free up more of your available credit, which should help boost your score further.

Good luck, and keep us posted. Hopefully Citi comes through for you in the end, though it may take awhile.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

LivingTheAmericanDream — Mon, 27 Oct 2025 01:54:48 GMT

Big congrats on paying > $50,000 down on your credit cards: you will be saving many thousands of dollars yearly in interest. I bet there will be many good CC issuers ready for you once all the issuers update.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

ptatohed — Mon, 27 Oct 2025 15:30:33 GMT

Personally, I would focus on that remaining $16,000 before worrying about anything else.

Congrats on the huge reduction in debt!

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

vantageman — Mon, 27 Oct 2025 16:16:14 GMT

Yeah I am focused on the remaining $16,000 in debt. I already have the money to pay off the $16k Merrick Bank card debt in full right now. But I need to wait until the end of the year to juggle some funds around. At least 99% of all my debt will be paid off by the end of the year, if not completly paid off.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

ptatohed — Mon, 27 Oct 2025 16:28:29 GMT

@vantageman wrote:
Yeah I am focused on the remaining $16,000 in debt. I already have the money to pay off the $16k Merrick Bank card debt in full right now. But I need to wait until the end of the year to juggle some funds around. At least 99% of all my debt will be paid off by the end of the year, if not completly paid off.

You should be proud!!

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

vantageman — Mon, 27 Oct 2025 16:52:11 GMT

I am proud—thank you.

I am just not proud that I am being punished by Citi Bank for paying off my debts. Would Citi Bank prefer that I file for bankruptcy instead of responsibly paying down my debt? As far as I am concerned, I have never had a late or missed payment. I am upholding my end of the credit card agreement, yet I am being punished with a reduced credit limit.

The fact that I am paying off all my debts after having incurred so much should demonstrate that I am capable of handling higher credit limits responsibly. They should be raising my credit limit, not lowering it.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

FicoMike0 — Mon, 27 Oct 2025 19:10:32 GMT

I agree, you should be happy you have made great progress.

I don't think you should kid yourself that chiti cut your limit because you made a big payment. They had already decided to cut your limit based on previous utilization. It's called balance chasing.

You didn't say what your previous utilization was and for how long. That would be a good data point.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

MrsCHX — Tue, 28 Oct 2025 16:38:38 GMT

@FicoMike0 wrote:
I agree, you should be happy you have made great progress.
I don't think you should kid yourself that chiti cut your limit because you made a big payment. They had already decided to cut your limit based on previous utilization. It's called balance chasing.
You didn't say what your previous utilization was and for how long. That would be a good data point.

Congrats on becoming debt-free, OP! But, yeah, the bolded...

You are being "punished" for owing the debt, not for paying it off. They didn't like the way you were using debt so they've decided to mitigate their risk. Some banks are pickier than others.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

LiamDavis — Wed, 19 Nov 2025 23:20:39 GMT

Congrats on the payoff! Just focus on paying off the rest. The lower limit shouldn't hurt you as much as interest will.

Re: I just paid off a large amount of debt across all my cards, and when I did Citi dropped my CL.

Realist — Thu, 20 Nov 2025 10:17:11 GMT

Quite an accomplishment, well done.

In regards to Citi, I consider them one of the tightwads in this industry personally. My opinion, no one elses. When you do business with lots of different card lenders, you tend to learn who are the generous ones, which walk the middle of the road as fair, those who are a bit tough, and those who tend to wear a stick up their behind. Citi would likely have balanced chased you anyways, even if you would have paid down your loan responsibly in bits and pieces.

The best you can do is ask why, and ask for an increase again. Or walk away from them, put the card in the sock drawer - and let them earn a penny or two in interest in a few years. Cycle the card for $5 here and there. I've declined doing business with Citi for less than this. Their certain requests on an 800+ score, were just as asinine as someone paying down a significant debt, only to get balanced chased down to a fraction of their once credit limit. I gave them the finger and went with other lenders. The one card I carry with them, I spend maybe $5 every couple years with them. It ages, that's its sole purpose.

I refuse to take the chance of using a hard inquiry on them, to secure a new line, when so many others offer the same or better - willfully.