My wife was shut down about 2 weeks ago from Citi. Then a reader sent me an email last night that he was shut down. He said he didn’t do anything out of the ordinary; no cycling or anonymous payments. Only thing he can think of was he had a card close with a balance that was half CL. Then I heard of another person get shut down too without cycling but they did hit Premier 3X. So it’s odd that 2 random folks get shut down in the past week for what looks like innoculous activity.
I don’t even know what the lesson learned here is – maybe try to keep your balances low across all banks because if one bank reports a high utilization on your CR, then that may freak out another bank. Stay safe out there folks.
Credit card delinquency is through the roof right now, and approaching 2007-2008 levels. Banks are lowering CLs and axeing accounts left-and-right to avoid being the ones holding the bag when the s**t hits the fan.
I had high utilization on my Citi cards recently, and when they reported to the credit bureaus, WF got scared and shut me down, yet I’m still at near 100% utilization with my Citi cards (0% APR), and no shutdown or lowered CLs from Citi. Hmm.
Saw a post on FM FB group (not sure if he cross-posted anywhere), he had 9 out of 13 accounts closed overnight w/ citi. He said something similar, only a card closing with a balance. Seems they’re shifting their risk management, a bit unnerving.
Citi closed my AA card around the same time for low activity. I think they’re just evaluating their credit portfolio and tightening their risk management, similar to what we saw in 08.