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Question By
kayfabe2012

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When doing the right thing doesn't pay - Citi dropped my LOC
So in an effort to raise my utilization i paid off about 70% of my citi line of credit and they then reduced it to by 70% so that means virtually no score bump next cycle. They did not inform me and the rep agreed they should have. Do I have any recourse?

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i literally threw the money in a fire place essentially, out the 7k and no bump in fact maybe a drop since they lowered the line

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Reply by
mindjazz

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You've been a member of this site longer than I have. Take some time to read the articles, and other questions and answers on this community forum.  The knowledge will help you make informed decisions in the future.

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Your LOC, or line of credit, may have been reduced because:

1) of a sustained long term high balance.

2) using the credit card at hospitals, healthcare facilities, casinos, etc.

3) making minimum or small payments in relation to your credit line.

Reply by
kayfabe2012

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understood but none of those apply. a few years ago i paid off another card only to have it closed almost immediately after

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Reply by
mindjazz

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Credit card companies routinely utilize consumer report information to see how account holders are handling debt obligations with other lenders. The bank is looking for changes in customers’ risk profiles that might warrant a change in the borrowing limit.

Banks routinely request the consumer reporting bureaus to review their existing account holders in a batch process. This type of inquiry is initiated by the lender, and is often referred to as a soft inquiry. The purpose is to identify customers who may be paying as agreed with them, but falling behind with other lenders. Banks flag this type of activity. It is common for banks to reduce credit card limits without prior notice to prevent losses.

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