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% 
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!
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.
@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%
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.
I am so sorry HUGS
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.
