cancel
Showing results for 
Search instead for 
Did you mean: 

Citibank lowering limits?

KatT1
Established Member

Citibank lowering limits?

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.

Message 1 of 36
35 REPLIES 35
Janus
Senior Contributor

Re: Citibank lowering limits?

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.






Message 2 of 36
NRB525
Super Contributor

Re: Citibank lowering limits?

OP what are your FICO 8 scores?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 3 of 36
CardNut
Valued Contributor

Re: Citibank lowering limits?

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. 

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 4 of 36
blindambition
Community Leader
Senior Contributor

Re: Citibank lowering limits?

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.

Message 5 of 36
Remedios
Moderator

Re: Citibank lowering limits?


@CardNut 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. 

Message 6 of 36
seattletravels
Valued Contributor

Re: Citibank lowering limits?

Agreed.  It sounds like balance chasing. 



Last App: BECU 02-26-2020
Pronouns: He/Him/His
Message 7 of 36
Remedios
Moderator

Re: Citibank lowering limits?

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. 

Message 8 of 36
CardNut
Valued Contributor

Re: Citibank lowering limits?


@Remedios wrote:

@CardNut 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. 

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 9 of 36
CardNut
Valued Contributor

Re: Citibank lowering limits?


@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.

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 10 of 36
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.