Unfortunately there's nothing you can do to stop it. As mentioned above, that is known as balance chasing, and the only thing you can really do is hurry and try to pay it off completely. They'll stop lowering your limit once they get it down to something they're comfortable with. They could also close down the account altogether, unfortunately. Let's hope not, but it is a possibility.
@jnbowmar wrote:
And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit.
They are automatically reported and whether or not the account is open or closed has no bearing on monthly reporting as long as there is a balance being carried as the FCRA requires all creditors to report accurate information if they report anything at all. Monthly payments lowering the balance therefore would require an update on a closed account with a balance.
@jnbowmar wrote:Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.
The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there. So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full.
And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit.
I don't agree at all with only paying the minimum and taking years to pay it off. Prolonged high utilization can lead to a domino effect of other creditors following suit and begin balance chasing, leading to more maxed out accounts and possible account closures. Paying off the credit line to be able to use it again should be the last thing on OP's mind.
Not only that, but you're basically telling OP to pay as much interest as possible just because.
@BrownieNpadre wrote:So far is has just been Chase and Citi that has hit me. I guess I will see what happens if I start paying off capital one and Wells Fargo card first. That way I may be able to get my score up high enough to keep the other two from balance chasing me when I pay them down.
I wouldn't worry so much about score as much as balances. Pay down your high balances as quickly and comfortably as you can, without overextending yourself, and as balances go down, utilization ratio will follow suit, and the score increases will follow.