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Citibank lowered my 31,600 credit limit to 4800 !?

I have had this card for 25 years, NEVER paid late. I used to use it all the time, but now we use a miles card. How can they lower it SOOOO much at once? I have 10 cards with limits of 10000 to 27000 one I use & one my son uses. So overall I still have plenty of credit. But it makes me mad they do such a thing.How bad will this effect my 823 credit score?

4 Answers

  • 1 decade ago
    Favorite Answer

    I have just answered the same question from another user. Yahoo policy prohibits the posting of repeated postings but I must do so as the answer is a lengthy one.

    This fast becoming the new trend from major bank card issuers. It's is not bad enough that our government gave them our tax dollars to cover their losses, they are now cutting down on every bodies credit limits or even closing accounts. We got screwed again.

    You will have noticed a lot of postings regarding this issue lately. Not only does this reduce you available credit it will lower your score because when they dropped your limit your debt to credit limit ration skyrocketed for just one month.

    It's time we fight back, You should file a complaint with the FTC on line @ the following web site

    Draft a letter to the CEO of Citi Bank and advise them of your disatisfaction in this matter. This practice borders on the following: TITLE VII—EQUAL CREDIT OPPORTUNITY

    § 701. Prohibited discrimination; reasons for adverse action

    (6) For purposes of this subsection, the term "adverse action" means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit.

    This is where your credit rating has suffered due to the sudden change in your utalization ratio.

    Also send copies (certified mail/return receipt) to the below listed departments.

    Report the credit card issuer to the Comptroller of the Currency. Phone number is 202-874-4700.

    Customer Assistance Group

    1301 McKinney Street

    Suite 3450

    Houston, TX 77010

    FAX: 713-336-4301

    Or you can file an on line complaint form at this web site

    Report the company to your state's attorney general's office. You can find links to your state's AG website at

    Report the company to banking regulators. Their mailing address is Division of Credit Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580 or file a complaint online at

    NOTE: This communication is not intended as and should not be interpreted as legal advice but is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to constitute legal advice to any person reviewing such information.

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  • 4 years ago

    Over the years in the mortgage industry I coached many to improve their credit to purchase a home. In some cases over a year if the client did within their "means" as I instructed. The credit bureaus use a computer system to calculate credit scores and no one can or will tell you their scoring system or method. In a five year period I chartered various clients in improving their score, pulling their credit evey two months after following my instructions on paying a bill, disputing an item(s), etc. I developed a "pattern" chart on what makes scores go up or down. In your case, do not request a lower limit as you were told. What really effects credit scoring with credit is the percentage owed in relation to your "High Credit Limit" indicated on the credit report. No matter if your "High Credit Limit" is $100 or $20,000 if you are within 95% owing your score will drop 22 to 30 points, 90% 18 to 20 points, 80% 8 to 15 points. Just a note for your friends and family: I saw this a lot when doing mortgages and prevented people from getting the loan. Not your case but you can advise if you know of someone, Student Loans after graduating allow a "deferred" time to begin paying, usually 3 to 5 years. This is to allow time for someone to start making money and live a normal life. During this period interest accrues putting your amount owed substantially over your "High Credit Limit". A really big hit to credit scoring, as much as 40 to 50 points per loan depending on the percentage over. Think about it, you graduated, got a job making really good money, feeling good about life, you can conquer anything and you can now budget to buy a home. That great Student Loan you have not been making payments for years will come back to "haunt" because you are being told the big NO in purchasing a home, not good for a young, upcoming person. Start making those payments as soon as you can regardless of time you are allowed.

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  • Anonymous
    1 decade ago

    im so sorry to hear that . Unfortunately , that is gonna happen to a lot of people . Banks are closing down credit allowances of ppl with more than 30 % available for use

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  • MadMan
    Lv 7
    1 decade ago

    Their view is that you have too much credit. Also, since you do not use it that much now, they are not going to let it hang out there.

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