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Major Balance Chasing on Citi Card :(

FeedMeCredit
Member

Major Balance Chasing on Citi Card :(

I figured this would happen, but it's so sad to watch! I have four Citi cards that I've been working to pay down. Since January, my overall utilization has gone from 91.2% to 76% as of today, but one of those Citi cards is chasing my balance like crazy.

 

The limit was $4,000. I made a payment last month and the limit was dropped to $3,600 (just above my new balance). Made another payment today, lowering my balance to $1967 and my utlization on the card to 54.7%, and the Citi app still shows my limit is $3,600, but the "available credit" bar under my balance is almost full and shows $61.20 available, which means my new limit may be $2,029. That would push my overall utilization back up to about 81% Smiley Sad 

 

I know it happens, but it makes it so much harder to make any progress in my credit rebuild. I'm just very thankful they haven't done this with any of my other Citi cards. Card #2 is my daily user, low limit, paid in full now. Card #3 was my first-ever credit card, low limit, 69% utl right now. Card #4 is my biggest limit card, 79% utl now, just made my second major payment and no balance chasing. 

 

I thought I could get around the balance chasing by making a big payment and getting the utilization down to around 50% on this card, but apparently not. If my next payment brings the balance it $0, is there a chance they'll lower the limit again anyway? I know no one knows for sure, but it'd be nice to hear the experiences/tactics others have tried.

 

Thanks in advance! 

Message 1 of 15
14 REPLIES 14
Momagain
New Contributor

Re: Major Balance Chasing on Citi Card :(

I'd be very interested in the answers you get as well.  I have one citi card that has been right at the limit for over a year and I am about to start knocking it out.  I'm worried about the "game of chase" too!  Synch got me on all 3 accounts I had with them for a late payment (8 hours past due date).  Got it all back and then some over a years time, but I REALLY don't want to play again.



Message 2 of 15
CreditMagic7
Super Contributor

Re: Major Balance Chasing on Citi Card :(

Thank You for posting and sharing that disappointing result of what's happened. If anything perhaps many new to credit in this forum will take note and do what they can to steer clear of such possibility as balance chasing, due to i would assume high utilization.

 

In these times of the pandemic where some lenders are exhibiting adjustments from risk by pulling back (not all of them), it's useful for the forum members to also be vigilant and try not to let their balances overtake the attention of lenders.

 

Sorry you experienced it OP but hopefully your other Citicards remain at current levels and only the one card is affected as you contend with the adverse actions taken

Message 3 of 15
coldfusion
Community Leader
Super Contributor

Re: Major Balance Chasing on Citi Card :(


@FeedMeCredit wrote:

I figured this would happen, but it's so sad to watch! I have four Citi cards that I've been working to pay down. Since January, my overall utilization has gone from 91.2% to 76% as of today, but one of those Citi cards is chasing my balance like crazy.

 

The limit was $4,000. I made a payment last month and the limit was dropped to $3,600 (just above my new balance). Made another payment today, lowering my balance to $1967 and my utlization on the card to 54.7%, and the Citi app still shows my limit is $3,600, but the "available credit" bar under my balance is almost full and shows $61.20 available, which means my new limit may be $2,029. That would push my overall utilization back up to about 81% Smiley Sad 

 

I know it happens, but it makes it so much harder to make any progress in my credit rebuild. I'm just very thankful they haven't done this with any of my other Citi cards. Card #2 is my daily user, low limit, paid in full now. Card #3 was my first-ever credit card, low limit, 69% utl right now. Card #4 is my biggest limit card, 79% utl now, just made my second major payment and no balance chasing. 

 

I thought I could get around the balance chasing by making a big payment and getting the utilization down to around 50% on this card, but apparently not. If my next payment brings the balance it $0, is there a chance they'll lower the limit again anyway? I know no one knows for sure, but it'd be nice to hear the experiences/tactics others have tried.

 

Thanks in advance! 


It's impossible to predict exactly what they will do with the card until you have paid it off entirely.   They may leave you with a toy limit or they may close out the card. 

 

While having a card closed stinks a card reporting as being closed in good standing by the issuer is not considered a derogatory event.

 



(4/2021)
FICO 8 (EX) 815 (TU) 822 (EQ) 808
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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 4 of 15
dustin31g
Frequent Contributor

Re: Major Balance Chasing on Citi Card :(

I am sorry to hear this. 

I do not think it is something that all lenders do across the board in every case. That's the problem I have with algorithms. Our credit lives are run not be humans but by AI. Sometimes AI ( Artifical Intelligence) makes an error and the problem I have is almost in all cases a human is not able to fix the issue. I love American Express for this reason because in certain cases they are able to override the decisions that AI makes. 

all you can do is pay down to zero then over time apply for a SP CLI and see if they give it to you. If they close the card then move on and it might be a blessing in desguise. You might find a way better card that fits your spending. 

Best of luck! 

Message 5 of 15
JoeLuvsHisCredit
Valued Contributor

Re: Major Balance Chasing on Citi Card :(

I am so sorry HUGS Smiley Sad

funny grrr.gif

Message 6 of 15
FeedMeCredit
Member

Re: Major Balance Chasing on Citi Card :(


@coldfusion wrote:

 

It's impossible to predict exactly what they will do with the card until you have paid it off entirely.   They may leave you with a toy limit or they may close out the card. 

 

While having a card closed stinks a card reporting as being closed in good standing by the issuer is not considered a derogatory event.


 I honestly wouldn't mind if the card were closed. In fact, I plan on closing some of my cards when it's all said and done. It's just disheartening to see the utilization rate remain so high as I work to pay things off.

 

Question: If I close the card, will I lose the miles I've earned with it? It's attached to my airline account. Will closing the card remove those miles? I'm honestly new to rewards programs. The only reason I opened this card way back when was for the 50k bonus miles. TIA

Message 7 of 15
FinStar
Moderator

Re: Major Balance Chasing on Citi Card :(


@FeedMeCredit wrote:

@coldfusion wrote:

 

It's impossible to predict exactly what they will do with the card until you have paid it off entirely.   They may leave you with a toy limit or they may close out the card. 

 

While having a card closed stinks a card reporting as being closed in good standing by the issuer is not considered a derogatory event.


 I honestly wouldn't mind if the card were closed. In fact, I plan on closing some of my cards when it's all said and done. It's just disheartening to see the utilization rate remain so high as I work to pay things off.

 

Question: If I close the card, will I lose the miles I've earned with it? It's attached to my airline account. Will closing the card remove those miles? I'm honestly new to rewards programs. The only reason I opened this card way back when was for the 50k bonus miles. TIA


If you close your account, you won't lose the points/miles.  Those reside in your loyalty program account.  Just keep in mind that miles/points can expire after a certain period of non-activity (in some programs) so be sure to read the T&Cs so they don't go *poof*.

Message 8 of 15
W261w261
Regular Contributor

Re: Major Balance Chasing on Citi Card :(

I don't have any citi cards per se, but did have a Sears card run by citi.  I never was near my limit of 5k, but was on other cards.  They balance-chased me down from 1800 to 900, I paid it off, then after 4 or 5 months, they notified me that they would not renew it.  There were never any missed payments, and the account just says "closed."  No nasty comments.  I think citi looked at my file and decided that I wasn't worth it.  Since Sears has its own problems,  hard to tell.  And no big deal. So.

Message 9 of 15
NRB525
Super Contributor

Re: Major Balance Chasing on Citi Card :(

Sorry this is happening to you OP. Back in 2010 - 2013 my two Citi cards were in the group of several cards being balance chased. Those were from much higher limits, so there was more reason for them to keep ratcheting down the limits.  You never really know when the balance chasing ends, until it's been a long time since the last cut.  

For the limits you have, I would hope this won't go on very long.  What is your entire list of cards and utilization levels on each card? Balance Chasing usually goes along with a general lender concern about them getting their money back, and more cards in high utilization raises that risk.

 

The sooner you can get all cards down to reasonable utilization levels the better. 

 

I would not close the card if you value the AA miles earning. Closing a card with a balance won't really change your overall utilization landscape and at these limits, as said, I doubt it will go on much longer. Once you get a handle on your debt, the card will start growing limits again. 

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 10 of 15
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