Citi Double Cash Dings Credit...Beware

Credit Cards
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I"m hoping Clark and his crew will see this.

I’ve been a Citi Double Cash and a Citi Costco user for many years. When I signed up for both, my credit was in the 570 range. Long story, self employed and carry high balances for several months. I pay them, and then charge them back up and may carry high balance for several more months.

But my payment history is impecible! No missed payments, no late payments, pay well above minimums; and usually pay off for a month or two till next job.

I initially used my Citi cards for these balances. I now have two citi cards, two capital one, and discover, and Chase Prime Visa.

Three years ago (2021) my credit was in the 640s (increasing from where I was). As stated, I carry a high balance on most cards because of business, Citi lowered my credit limit, and when they did that caused me to be over the limit. They then charged me overlimit fees. Then I was hit with high interest rates.

Citi first lowered my Costco, then they lowered my double cash a month later. Cut both in half. When my cards hit my credit report, I was dinged and my credit rating took a plunge.

I reached out to Citi and they gave me generic spiels. I reached out to Costco who was not happy about it and contacted Citi. Citi immediately called me (within 45 minutes) and said they’d look into it. They called back and I got the same ole script.

A year later (2022), Citi did the same exact thing with both cards, cutting limit in half. My credit was seriously dinged because of Citi. I reported Citi again to Costco, got a call from Citi in 45 mintues. But then two days later said they couldn’t do anything. And they continue to punish me to this day (2024).

Every year, Capt 1 increases my limit, every year disocover increases my limit, every year Chase increases my limit; Citi is punishing me and is keeping my Costco limit at only a few hundred dollars when all my other cards are thousands. I haven’t carried a balance on my Citi cards for 2 years. I use the other cards now for that.

Beware, Citi is shady, sneaky and vindictive. I have over $10k limits on my other cards but Citi only gives me a few hundred credit limit for my Costco and Double Cash.

I just learned there are other 2% cards out there and I’m applying today. Unfortunately, I have no other options for my Costco card.

I really want Clark Howard to know that Citi will punish people and sabotage their credit ratings.

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Here’s what I think Clark would say. You’re using way too much of your available credit. You can’t “Charge them up and keep them there” for a few months. The CC companies are scared to death you’ll stop paying. Clark says not to use more than about 30% of your available credit. That’s how you get to a credit score of the high 700’s to low 800’s. Rant over.

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I totally understad that. That’s a given! But, when you’re in an industry where you float debt for a few months, then you do what you have to do. I’m not complaining about that; I know I’m in that boat.

What I don’t like is the vindictiveness of Citi. Again, all of my other cards have increased my limit anually. Citi won’t. They dinged me out of spite. I don’t carry a balance on them, yet they continue punishing me.

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Maniwar, have you thought about possibly getting a fixed-rate credit card with a purchase APR of less than 12 percent? I currently have a fixed-rate credit card with a purchase APR of 8.99 percent. I got it from a credit union.

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Hi PropofolMask, yes, one of my cards is a fixed rate card that I use as revolving credit. I’m also looking at another solution soon.

But I go back to the issue is the crookedness of Citi. They keep dinging me which has lowered my credit three years in a row. I’m replacing my 2% card, I just can’t replace my Costco Visa since it’s a Citi issed card, which I still use (with only a few hundred $ limit). If I could, I would drop it like I’m dropping double cash. They’ve caused my credit rating to drop because they lowered their two cards roughly $9,000. That ding’s your credit pretty badly.

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Had this happen with American Express years ago. Basically, CC companies are a$$holes, and they are making decisions based on data mining. Same for a lot of other companies. With merchants getting happier and happier with tacking on fees (be it the 3% for using the card or other items), the CC system as we know it is dying.

American Express was special. We never had more than 1k on it, and it was paid off every month. I get a call from my wife who is trying to buy gas - card won’t work. Weird, okay, I’ll look into it, use your debit. I looked into it. Some VP at AmEx decided to pull a boner and pull a huge # of users credit back to the balance due. There were customers on business travel stranded. It was a debacle.

I won’t shed a tear if AmEx fails and goes bankrupt. Same goes for Delta, United, American…

Charging you over the limit fees because they reduced your credit limit is likely a federal violation. As for the comment about not using more than 30%, that’s ridiculous. Establish a relationship with a local bank. Get to know the people there.

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That’s the number Clark gives us to not go over if you’re trying to keep a high credit score. You certainly can go over that if you need to. The key is pay off the balance each month.

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sadly, I am going to agree here, but I am old school (meaning I’m old). I cared about my credit score because I wanted my interest rates low if I wanted to buy a house or a car. There days, just about every bozo - I’m looking at you insurance companies - tie their charges to the credit score more so than the claims history.

What I don’t understand is if I have a 20k CC limit and go on a long trip, have a GREAT time, then pay off the 15k bill, that hits my score? Stupid. The entire system is stupid. Get yourself in a place where you just don’t care about your score.

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