Citibank Credit
Good Afternoon Ms. Savage,
My questions is can or should a credit card company reduce your credit limit if you have on time payments for the time you have had the credit card. I have had a Citibank credit card for 3 years and have never been late, paid more than the minimum due on the card. I also have paid the full balance previous before. I was notified by email that they are lowing my credit limit. Now my limit is the balance of what I owe them, making it appear that I maxed out my credit limit when I didn’t. I had a $4000 limit, my balance was $2649 leaving me with over a $1300 available credit. Now I have $73 credit. During this pandemic I have not missed any payment or asked for any extensions. I need your help! What should I do?
Terry Says
Don’t take it personally. Many card issuers are lowering credit limits. They know that people must charge on their cards if unemployed or needing money to live on. And they are worried that they won’t get repaid. They have created algorithms that tell them “who is likely” to be in this situation — based on the balance carried, and zip codes, and all sorts of hidden features. Again, this isn’t personal. But now is the time to apply for another card, with a higher limit. You might even consider transferring the existing balance to another card with a lower rate. But if you do that, you should plan to pay off the balance transfer in full, before the rate on the new card jumps much higher.
For more info go to CreditCards.com and here is the link to that section which explains balance transfers, and lists cards that could work for you.
