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Credit Limit Lowered by Citibank with no reason

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Anonymous
Not applicable

Credit Limit Lowered by Citibank with no reason

I recently received a notice from Citibank that my credit card limit was being decreased from $25K to $17K.   I barely ever use the card, I've been a member since 2010, always paid on time so I am confused.   I had not used the card at all until they sent me a balance transfer offer with a 0% interest rate, and I transferred over 5K of debt from a store credit card that I owed.    They thought I was credit worthy of the transfer but not of the credit limit I had.    I have two other cards, one which has a zero balance and one which has about 10K on it.   I pulled my credit report and nothing new showed up.    I have never been late on any payment, paid off two car loans, and have student debt, but I've had that for years.  I called Citibank to try to find out why they reduced the rate and they kept saying "equifax required us to do it."    I said they mandated you to reduce my available credit, you have no discretion in the matter, and the response was yes, it was due to change on  your credit report, except there was no change on my credit report. I am tempted to close but I know that's not the right thing to do.  I will pay it off with my bonus in a few months and leave the account open.  But it concerns me that this can just be done with no recourse?   I earn 150K a year and my rent is around $1000K.     

Message 1 of 36
35 REPLIES 35
HeavenOhio
Senior Contributor

Re: Credit Limit Lowered by Citibank with no reason

Welcome, @Anonymous. Smiley Happy

 

This is the first time I've heard of AA (adverse action) because "Equifax required us to do it." Smiley Happy You should be getting a letter in the mail that'll hopefully cite a more plausible reason.

 

What's the status of the balance transfer on the card? Was it paid off well in the past, or are you still paying toward it?

Message 2 of 36
UpperNwGuy
Valued Contributor

Re: Credit Limit Lowered by Citibank with no reason

I suspect that the $10,000 balance on your other card is what triggered the adverse action.  That's a problem you need to fix.

 

Also, the "change" in your credit report means that it changed since the last time Citibank reviewed it, and that may have been a few years ago when you originally applied for their card.  When did the $10,000 and the $5,000 balances occur?

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Message 3 of 36
bourgogne
Valued Contributor

Re: Credit Limit Lowered by Citibank with no reason

hi, sorry this happened.  with no reason yes, but it did happen for a reason.   not a drop of coffee in me but how was your card use before the bt?  if it was light you went up to ~20% utilization on that card.  that could easily be the trigger.  I suppose I differ on most on this board, I am a 100% transactor.  I believe that balance transfers, cash advances and making payments even if its a sweet no interest offering carry risk.  if I went out of my `transactor' mode my results could vary.  last year cap1 did a $37K > $10K move on me overnight.  reason was I don't use the card therefore I dont need the limit.  makes sense, the problem is that when aa happens it leaves a bad taste in ones mouth or at least it did for me.  get some cards from some better lenders; amex, chase and move on would be my suggestion

 

edit, just re-read your post, you have $10K owning on another card that has a limit of what?  utilization is what triggered your situation, I am sure of it

 

Message 4 of 36
fuzzle
Regular Contributor

Re: Credit Limit Lowered by Citibank with no reason

Cards that are barely used are at risk of having their limits cut. Might have stumbled in a trap in this case if the balance transfer to an unused account raised a red flag

Message 5 of 36
Anonymous
Not applicable

Re: Credit Limit Lowered by Citibank with no reason

I got the citi card in 2010.  That 10K balance was more than that significantly when they approved me for the card, and it was there a few months ago (approximately slightly more) when they gave me the balance transfer. So it's not as if something has "changed" in fact I have less debt now than when they took me on.     That's why I don't get it. It's actually making me paranoid that something is in my credit history that happened recently that I cannot find, but I have ran all three of my reports and there have been zero changes, no delinquent payments, nothing new taken out as loans or cards, no balance increases? 

Message 6 of 36
Anonymous
Not applicable

Re: Credit Limit Lowered by Citibank with no reason

I know that response made zero sense and that's why I kept fighting with them about it.  I did get a letter it says "ulitization of credit on other accounts," but again as I stated I have not utilized any more credit on any of my accounts.  The debt that was there is less than when Citi approved me for the card, and certainly less than when they offered me the balance transfer.  The agent kept saying look at your credit report and I said Ms. I have all three up right now, nothing changed.  

 

I have about $2500 left to pay off on the balance transfer.    

Message 7 of 36
SouthJamaica
Mega Contributor

Re: Credit Limit Lowered by Citibank with no reason


@Anonymous wrote:

I recently received a notice from Citibank that my credit card limit was being decreased from $25K to $17K.   I barely ever use the card, I've been a member since 2010, always paid on time so I am confused.   I had not used the card at all until they sent me a balance transfer offer with a 0% interest rate, and I transferred over 5K of debt from a store credit card that I owed.    They thought I was credit worthy of the transfer but not of the credit limit I had.    I have two other cards, one which has a zero balance and one which has about 10K on it.   I pulled my credit report and nothing new showed up.    I have never been late on any payment, paid off two car loans, and have student debt, but I've had that for years.  I called Citibank to try to find out why they reduced the rate and they kept saying "equifax required us to do it."    I said they mandated you to reduce my available credit, you have no discretion in the matter, and the response was yes, it was due to change on  your credit report, except there was no change on my credit report. I am tempted to close but I know that's not the right thing to do.  I will pay it off with my bonus in a few months and leave the account open.  But it concerns me that this can just be done with no recourse?   I earn 150K a year and my rent is around $1000K.     


I'm sure the reason they did it is that you "barely ever use[d]" it. If you barely ever use it, you are not profitable to them. Banks are required to maintain reserves based in part on credit card limits, so customers who have high limits that they barely use are among the candidates for credit limit decrease. I'm sure your contract with Citibank gives them the right to reduce, or even eliminate entirely, any credit limit they have extended on a revolving account.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 8 of 36
Anonymous
Not applicable

Re: Credit Limit Lowered by Citibank with no reason

I barely ever used the card prior to making the balance transfer. I think maybe once or twice in a few years for purchases under $100.   I did not think of that, that the utilization of their credit that they offered me could trigger something because I had not used much of it before, that's not cool at all!   Thanks for the tip on that though I will no better next next.   The other card has a 40K limit on it, but here's the thing the 10K balance is lower than when they gave me the card, and much lower than when they offered me the balance transfer.  That's why it makes no sense to me. 

Message 9 of 36
Anonymous
Not applicable

Re: Credit Limit Lowered by Citibank with no reason

I think I did stumble into that trap.  Welp won't fall for that again and won't ever bank with them again. 

Message 10 of 36
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