Citi Credit Limit Decrease - Any Chance of CLI in Time?

[SeagullsSayHi]

Hi, all! So in the last year I paid off all credit card debt and then watched as it built back up. I was a single parent living off of an $11/hr wage in a continual court battle about child support for my daughter that was ongoing for nearly two years. Some months I'd have to rely on debt to pay for diapers, food for my little one, etc. I always made sure my cards were paid on time and I tried to pay over the minimum when able. I am quite proud of my 100% on-time payments and want to keep it that way.

In August I left my job to pursue my 'side job' which can pay better some months, though it is contract work so some months are good and some aren't. (Though it has been a good move for me, overall.) In November I finally started getting child support after almost two years which meant I could finally use some of my own money to put toward the debts I had accumulated. Great! So I started paying more that minimum on all cards and haven't charged anything since. Except on my Citi Double Cash Card.

My DC Card is my favorite of them all; I love the 2% back on anything (1% for buying, 1% for paying). I have boasted about it to pretty much anyone that brings up the topic of credit cards. I'd often make multiple payments on it in a month so that I could charge more (I only had/have an $800 starting limit). In 2017 I put $12k on it. So for the last two months I have been paying on all my other cards, only charging things to my Citi DC for the 2% back.

I have a software payment coming up on the 28th for about $480 so I went ahead earlier this week and put in a payment for $500 to make sure I had enough available credit for the payment... like I do every month. This morning I'm going through my email and I see an email from Citi saying that my credit line was reduced for $800 down to $310 due to "a substantial number of debts owed to other creditors." I won't argue that; yeah, there's quite a bit but it is all being reduced and I have never missed a payment. Heck, I paid off a card last month and even go an auto credit limit increase on a store card.

Now I am in a pickle because the $500 that was for my software payment just got ate up by Citi's CLD. Great. (Good news is that this company is quite understanding and told me previously that they allow up to 2 skipped payments a year, if needed. It's 0% interest and doesn't report to the credit bureaus as any sort of debt. Their billing department was closed today so I will need to call Monday to get that sorted out, but no harm done.)

Here I am, being all proud of myself for paying down my debts, paying off a card, getting an auto credit limit increase... and Citi is scared and balance chasing me down. I know my other debts aren't looking good. I get that. But I also am lowering my debts and have 100% on-time payments; never missed one on ANY debts. Heck, my debts are probably 2k lower now than a few months ago.

So, with a sigh, I ask if there is any hope of ever being able to increase this card? I realize they may leave the credit limit at this small $310, they may balance chase me even lower, or they may even close my account if I pay in full. So what the heck should I do? I love this card more than any that I currently have. I've been in the garden since August so I don't know if I want to risk a hard pull to have them review my credit report once I pay off about $6k in debt next month or not.

Has anyone had this happen and is later able to get a CLI? Or should I just pay it off, close it, and wait a good year or two before applying again when my debts are low/nothing? Like I said, I do love this card. I had about $300 in rewards that I used for Christmas presents this past holiday season! 

Is ther any hope for this one rebounding? 

[pizza1]

First welcome to the boards!! Glad to have you here posting!
Secondly...wow, what a story, and I commend you for all the hard work you've done to rebuild, and build your life and credit, must have been very hard.

Lastly...How much is your overall utilization reporting on all your cards combined? If its high >35%, some lenders will be spooked. The CLD is only temporary. Get the rest of your overall utilization down to below10%, and then call to have your limit increased.

[AverageJoesCredit]

Lol, once again 100% agree with Pizza. Yours is an amazing story. Great job always making your payments through some very hard times. Not always easy. As you pay down he debt, Citi should feel better and hopefully restore and increase your limit You are doing great and eventually everything will balance out.

[joltdude]

CLDs suck...

As an aside... would you mind telling us what debts you do have... or at least the percentages?

Helps folks try to figure out in more detail what could be causing it and how to fix it efficiently.... 

Do you know your FICO scores? (Not FAKO, not Credit Karma, etc...)  (if you need at least one free one, can sign up for Discovers credit scorecard for one free fico a month and a simplified report) 

As some folks suggested sometimes utilization can cause these sort of issues.....

Yes theres a chance of CLI in time.... But it will take a little bit.. Something spooked them.... (im also guessing your self-employed which can be a con with a lot of these card companies).......

Might want to check out the rebuilding forums for hints on this....Know youve come a long way and this is likely just a minor blip in the grand scheme of things.... Congratulations on all the work youve done so far... Even though this feels like a kick in the pants.... your still better off then you were to begin with....

-J

[CreditInspired]

Welcome OP

Like Pizza and AJC said, what an amazing story and diligence on your part focusing on your credit.

I really think you should email Citi with the same story (cut and paste it) -- you have absolutely NOTHING to lose and everything to gain if they reconsider. Honesty is a great thing and you may get someone who understands how diligent you've been ensuring that all of your credit cards got paid.

Give it a try -- call them and GL2U

[Anonymous]

What happened here? I hate it when people ask for advice and then vanish. Some of these threads are like a good short story (or novel) and I want to known what happens!!! Lol. It’s like getting to the climax and then shutting the book. :/

[joltdude]

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@Anonymous wrote:
What happened here? I hate it when people ask for advice and then vanish. Some of these threads are like a good short story (or novel) and I want to known what happens!!! Lol. It’s like getting to the climax and then shutting the book. :/

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I call them Drive By MyFico Members... they sign up.. ask a question.. usually read the answer, and dont come back.. or disregard it entirely and do what they want ... thinking they "know best"...  not realizing theres a lot of experience on these forums dealing with similar situations. Usually folks on here try to steer them in the right direction... You can drag a horse to water but you cant make them drink.....   Kinda gets to me hearing the story without the ending.... we want to hear how it turns out, for better or worse.... so we can use the information ourselves to improve our advice...

-J

[Anonymous]

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@joltdude wrote:

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@Anonymous wrote:
What happened here? I hate it when people ask for advice and then vanish. Some of these threads are like a good short story (or novel) and I want to known what happens!!! Lol. It’s like getting to the climax and then shutting the book. :/

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I call them Drive By MyFico Members... they sign up.. ask a question.. usually read the answer, and dont come back.. or disregard it entirely and do what they want ... thinking they "know best"...  not realizing theres a lot of experience on these forums dealing with similar situations. Usually folks on here try to steer them in the right direction... You can drag a horse to water but you cant make them drink.....   Kinda gets to me hearing the story without the ending.... we want to hear how it turns out, for better or worse.... so we can use the information ourselves to improve our advice...

-J

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lol thats a good name for them

[Anonymous]

Ever hear the proverb, when one door closes? Maybe you weren't meant to buy the software. 

If you do return, it's only temorary. Always in motion Fico scores are. Once you pay down on some of that debt, you can likely see a CLI with them. Afterall, with a steady stream of income it will become easier to pay.

As for the Drive by MyFico memebers comment, some people might simply need a place to vent their dissmay over CC situation. Not really seeking an answer to anything?

[Anonymous]

The OP hasn’t logged back in since the initial post so unless  they return there’s no point in making new posts in the thread.  Thank you for your understanding and cooperation.