Has anyone ever seen a CC company lower CL as you pay it down?

[Bogey1975]

I'm trying to get my Citibank Costco Visa under 28%. Every time I make a payment they lower the limit. The 1st time it was a mistake and they raised it back. I just made a payment again and they lowered it again. It would of been down to 27% but it sits at 32%

[blindambition]

Sounds like balance chasing. Have you been carrying high balances? That card and others, for long periods.

[Bogey1975]

This card normally hovers around 44%, other cards are in the 30s with the exception of two which are in the 80s, working on bringing those down.

[rostrow416]

It sounds like balance chasing, but your balance isn't at the limit.  Something about your profile has them on edge but I don't understand why they wouldn't just lower your limit to whatever point they have in mind>

[blindambition]

Three carrying moderately high balances, and two definite high balances, balance chasing sounds like the culprit.

[AverageJoesCredit]

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@rostrow416 wrote:

It sounds like balance chasing, but your balance isn't at the limit.  Something about your profile has them on edge but I don't understand why they wouldn't just lower your limit to whatever point they have in mind>

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They are making sure Op cant keep spending on their card

[Bogey1975]

So I guess I just need to bring this card to 0.

[Remedios]

Hi and welcome to the forums 

@Bogey1975  bringing that card to $0.00 may result in card remaining open or they still might decide to close it.

There really is no way to tell. 

I'd be more concerned about those cards that are at 80% utilization.

Citi is no stranger to CLDs (no lender is), but they typically aren't hyper reactive unless it goes on for a while. 

Those maxed out cards may cost you additional cards or CLDs, so I'd suggest you focus on brining those balances down to a more bearable level. 

[Anonymous]

Can we really call it balance chasing though if the result of the CLD is the OP ending with 27%-32% utilization? 

OP, can you describe what your limit was originally, where it stands now and how many steps down (CLDs) you received?

Did you have any negative information introduced to your CR from other accounts?

[FinStar]

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@Anonymous wrote:

Can we really call it balance chasing though if the result of the CLD is the OP ending with 27%-32% utilization? 

OP, can you describe what your limit was originally, where it stands now and how many steps down (CLDs) you received?

Did you have any negative information introduced to your CR from other accounts?

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Essentially yes, especially if the CL (or overall exposure of the account) is reduced to a certain level, time after time, whenever the overall balance is reduced.  Some lenders like BoA, Barclays, SYNCB, Comenity, etc., tend to reduce it to a certain percentage of the CL (closer to the balance amount) to allow for fees (if applicable) and finance charges to accrue during any given statement cycle.  

Conversely, Chase, FNBO, Citi, etc., reduce the CL in a variety of cases, but not that close to the existing balance.  This isn't a voluntary or random CLD due to inactivity.  It's a repeated [CLD] pattern over the course of active account monitoring to reduce a lender's exposure.  We can call it "bunny hopping down the ladder" 🤷‍♂️

The OP can certainly provide the respective CLs and balances for the affected accounts (for clarity and reference), but it still wouldn't change the methodology.