Your Costco Anywhere Visa® Card by Citi credit limit may have been lowered due to late payments, inactivity on your card, or a change in your credit history. Citibank will periodically review how you’re managing your current limit and may lower it if they don’t think you can afford the full thing.
You can call Citibank at 1-855-378-6467 to ask about the particular reasons why your credit limit was lowered. You can also learn more about the most likely causes and how to avoid future credit-limit decreases below.
Why Your Costco Credit Card Credit Limit Might Have Been Lowered
- Missed payments:If Citibank detects a number of missed or latepayments, they could assume that you might be experiencing financial difficulties, and reduce their risk by lowering the amount you can borrow from them.
- High credit utilization:Yourcredit utilization is the ratio of the amount you’re borrowing compared to your credit limit. If your balance is frequently close to your limit, Citibank may see you as risky, and they’re likely to limit how much you can spend – especially if other aspects of your credit profile seem shaky.
- Inactivity: If you aren’t using any of the limit that’s available to you, Citibank might eventually lower your credit limit accordingly.
- Changing market conditions: Citibank may have lowered your credit line to limit its risk in response to changes in the economic environment. Many people’s limits got lowered by credit card companies during the COVID-19 pandemic, for example.
While your card activity might not always be the reason for a credit limit decrease, you can reduce the chances that it will be lowered in the future by using your card regularly and responsibly.
How to Prevent Your Costco Credit Card Limit From Being Lowered
- Never miss a due date. Missed payments are one of the main reasons why your Costco Credit Card credit limit might be lowered. You should always pay at least the minimum amount required by your due date. Setting up automatic monthly payments from a bank account can help with this.
- Use your card once a month. Your Costco Credit Card credit limit may be reduced due to inactivity, so it helps to make at least one purchase with your card each month to keep it active.
- Keep your balance low. Another factor that could make you appear risky is if you have high credit utilization. Ideally, you should keep your balance below 30% of your credit limit.
In most cases, Citibank isn’t legally required to inform you before they change your credit limit. The exception is if your new limit would result in an over-the-limit fee, which you generally must opt-in for. In this case, they must notify you 45 days before the limit goes into effect, or they must waive the fee.
If your credit limit has already been lowered, you can try requesting a credit limit increase, especially if your account has been in good standing for several months.
This answer was last updated on 05/09/24 and it was first published on 05/01/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Your Costco Anywhere Visa® Card by Citi credit limit may have been lowered due to late payments, inactivity on your card, or a change in your credit history. Citibank will periodically review how you're managing your current limit and may lower it if they don't think you can afford the full thing.
Why would Citi decrease my credit limit? ›
If they see something they don't like — late or missed payments, for instance — they can lower your limit. You missed a payment with that creditor. This change can spark a creditor to drop your limit, thinking you must be going through a financial hardship and are an increased credit risk.
Why has my credit card limit been reduced? ›
A bank or credit card issuer can generally lower (or increase) your credit limit at any time as long as the credit card agreement allows. Low usage isn't the only reason a lender could decrease your credit card limit. You might find yourself in a similar situation to mine if … You have missing or late payments.
What is the average credit limit for Citi Costco credit card? ›
The average credit limit for members who have matched with this card or similar cards is $6,077, with $300 being the most common.
Why is my credit card available balance lower? ›
Your available credit decreases by the amount of any purchase you make and increases by the amount of any payment. So paying your credit card bill early (and often) can help you avoid maxing out your spending limit and having a purchase get declined.
Why does Synchrony Bank keep lowering my credit limit? ›
Christie Matherne, Credit Card Writer
Synchrony Bank may have lowered your credit limit due to late payments, inactivity on your card, or a change in your credit history. Synchrony Bank will periodically review how you're managing your current limit and may lower it if they don't think you can afford the full thing.
Does reducing credit card limit improve credit score? ›
Requesting a low limit may inhibit spending, and may require you to use a larger portion of the credit available to you. Using most, or all of the available credit may negatively impact your credit score as it can indicate that you are financially stretched, even if your limit is quite low.
What is the credit limit for a Costco card? ›
The Costco Credit Card credit limit is $500 or more. Everyone who gets approved for Costco Credit Card is guaranteed a credit limit of at least $500, and the most creditworthy applicants could get much higher limits.
How do I increase my Citi Costco card limit? ›
Can you get a credit limit increase with the Costco Anywhere Visa® Card by Citi? As a cardmember you may be eligible for a credit limit increase. You can request a credit limit increase online for the Costco Anywhere Visa Card at citi.com/creditcards or via phone at 866-641-4054 (TTY: Use 711 or Other Relay Service).
What FICO score do you need for a Costco Credit Card? ›
To get approved for the Costco Anywhere Visa® Card by Citi you'll typically need a FICO® score of 800 or higher.
When your credit line is slashed, you're a lot more likely to go over your maximum credit limit. Therefore, you should call your credit issuer and ask for them to reconsider, argues Tayne. “A good first move is to contact the creditor to see if the old limit can be restored,” she advises.
Can credit cards lower your limit without notice? ›
In most cases, a credit card issuer must provide an adverse action notice when your credit limit is reduced. However, they are not required to give you any notice before doing so.
What is a good credit limit for a 30 year old? ›
Good Credit Limits by Age Group
| Age Group | Good Credit Limit |
|---|
| Gen Z (18-24) | $13,000 |
| Millennials (24-39) | $28,000 |
| Gen X (40-55) | $39,000 |
| Baby Boomers (56-74) | $42,000 |
1 more rowAug 21, 2024
Your Credit Limit is reviewed on a monthly basis using information we hold about the way you manage your account, as well as information provided by the Credit Reference Agencies. We may increase or decrease your Credit Limit as a result of this review, or we may decide to place a temporary hold on your credit account.
What is the maximum credit limit for Citibank? ›
Some sources say that Citi has a maximum credit limit of $50,000. This is significantly lower than what many other card issuers offer, including American Express and Chase. If you want to get the highest possible credit limit, you may want to consider other card issuers besides Citi.
Why does my Citi Bank card keep declining? ›
Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.
Why is my credit score going down when I pay on time? ›
Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.
