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Citi Bank keeps lowering credit limit

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MN3
Member

Citi Bank keeps lowering credit limit

I have the Citi Bank Double Cash and Citi Bank Costco cards. Both have now lowered my credit limit twice in the past 5 months (at the same time for both) with the reason being "high utilization". But if they'd stop lowering my CL, I wouldn't have high utilization..! I get the cards paid down to 50% and they then suddenly drop my CL to just over $100 of my unpaid balance, causing a waterfall to a drop in my credit score. I haven't even been using the cards because they keep dropping my limit. And I havent missed a payment, on any credit line, for more than 4 years now (these two cards never). Is this common, will they ever stop?! 

 

Maybe I'm just venting. But I'm getting so frustrated - especially since they are, in theory, causing the reason given 😒. 


FICO 8 as of 03/03/2020: EX - 571; TU 558; EQ 531
FICO 8 as of 02/02/2022: EQ 663; TU 675; EX 649

Mortgage Scores as of 05/12/2020: EX 603; TU 546; EQ 575
Mortgage as of 02/02/2022: EQ 646; TU 668; EX 627

Message 1 of 28
27 REPLIES 27
longtimelurker
Epic Contributor

Re: Citi Bank keeps lowering credit limit

This is called balance chasing and often, but not always, results in them eventually closing the card, or leaving you with a very low credit limit.

There is no great way to stop it, but getting util down on all other cards might help.

Message 2 of 28
CreditCuriosity
Moderator Emeritus

Re: Citi Bank keeps lowering credit limit

yep being balanced chased due to high utilization with them and likely other lenders.  Best way to stop it and possibly other cascading lenders is start paying down your balances and becoming less of a risk for the financial institutions.  My guess is either paying min payments and/or escalating debts over period of time.

08 Scores - TU: 839 - EXP:839 - EQ:838
Message 3 of 28
AzCreditGuy
Established Contributor

Re: Citi Bank keeps lowering credit limit

They sound like Barclays.....Glad I didnt bother getting a Citi card 

Message 4 of 28
FlaDude
Valued Contributor

Re: Citi Bank keeps lowering credit limit


@AzCreditGuy wrote:

They sound like Barclays.....Glad I didnt bother getting a Citi card 


Recent posts about Synch and Chase too.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, Amex Hilton Surpass, BoA Platinum Plus, Chase Freedom Unlimited, Chase Amazon, Chase CSP, Chase United Explorer, Citi AA Plat, Sync Lowes, Sync JC Penney - total CL 145k
Loans: Chase car loan (35k/6yrs 0.9%)
Message 5 of 28
Slabenstein
Valued Contributor

Re: Citi Bank keeps lowering credit limit


@FlaDude wrote:

@AzCreditGuy wrote:

They sound like Barclays.....Glad I didnt bother getting a Citi card 


Recent posts about Synch and Chase too.


Any issuer will balance chase an account that has triggered their risk mitigation.  In the current climate of rising balances and increasing defaults, we'll probably continue to see more posts about this across the board.


Message 6 of 28
SouthJamaica
Mega Contributor

Re: Citi Bank keeps lowering credit limit


@MN3 wrote:

I have the Citi Bank Double Cash and Citi Bank Costco cards. Both have now lowered my credit limit twice in the past 5 months (at the same time for both) with the reason being "high utilization". But if they'd stop lowering my CL, I wouldn't have high utilization..! I get the cards paid down to 50% and they then suddenly drop my CL to just over $100 of my unpaid balance, causing a waterfall to a drop in my credit score. I haven't even been using the cards because they keep dropping my limit. And I havent missed a payment, on any credit line, for more than 4 years now (these two cards never). Is this common, will they ever stop?! 

 

Maybe I'm just venting. But I'm getting so frustrated - especially since they are, in theory, causing the reason given 😒. 


If it's any comfort, the same thing has happened to my accounts recently at Chase and Discover. It's a tough climate.


Total revolving limits 586020 (520820 reporting) FICO 8: EQ 710 TU 707 EX 692




Message 7 of 28
longtimelurker
Epic Contributor

Re: Citi Bank keeps lowering credit limit


@Slabenstein wrote:

@FlaDude wrote:

@AzCreditGuy wrote:
  • They sound like Barclays.....Glad I didnt bother getting a Citi card 

Recent posts about Synch and Chase too.


Any issuer will balance chase an account that has triggered their risk mitigation.  In the current climate of rising balances and increasing defaults, we'll probably continue to see more posts about this across the board.


Right, so a more appropriate comment, albeit unlikely in this forum is: Glad I didn't bother getting a credit card

 

And as a gentle reminder from Statistics 456;  the fact that one or two people post a bad experience with issuer X (and usually, at least at first, omitting some key details) doesn't mean that you should assume this is typical of X and you should be glad you dodged the bullet, if you did. 

  •  Some behavior is considered risky by almost all issuers, so the AA described doesn't tell you anything about the merits of the issuer. 
  • You don't know all the people who have been perfectly fine with issuer X and like/love/tolerate the cards.

And even when there are LOTS of complaints, e.g. Sync, you still don't know if this is because the issuer is extremely risk adverse (and thus may be a bad choice) or is it simply that the population size is very large, because the cards are easier to get, or a mixture of the two (the cards are easy to get and given to people with weaker profiles, leading eventually to more AA).

Message 8 of 28
Gregory1776
Valued Contributor

Re: Citi Bank keeps lowering credit limit

Just got the simplicity with a too low a limit for me - but first time being with them, and with my high utilization on another card I'm sure led to them allowing me to just squeeze in. 

I have to pay insurance any day now and I contemplate putting it on the citi, which I just had a BT for. 
I'm hoping to arm wrestle them into increasing the limit so I can have a bit more time paying off a balance. 

otherwise it will be a blitz. 😁

AMEX 30k & EveryDay 11.5K
Discover 27K
Wells Fargo 23k
Chase Amazon 23.5k
US Bank Cash+ 20K
Cash+#2 14.4K
Citi Simplicity 9.1K
Loan 8K -> 3.5k
Auto Loan 5.9K -> Paid Off!



Message 9 of 28
FicoMike0
Valued Contributor

Re: Citi Bank keeps lowering credit limit

If it's of any comfort, chiti sucks pond scum and howls at the moon! They turned me down on preapproval.

Message 10 of 28
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