Until December 2008, our primary-use small-biz card carried a $20k limit. Overkill, to be sure, as we use only a few hundred of it during any given month ... and usually not even that much.
With December's statement, though, I notice that Citibank has reduced the credit line by 85 percent, from $20k down to $3k.
I also note that Citibank, unlike Chase, never notified us of the impending reduction. Doesn't much matter to me, since our use of the card is so small. But for others, this could make for an especially nasty experience at the checkout.
Let's be honest, though: Anyone could see this coming. Note my previous posts regarding Citibank's difficulties and also impending credit-limit reductions.
Small-business owners, take note! If you rely on hefty limits on your credit cards to fulfill short-term borrowing needs, you might be in for some serious unpleasantness in the coming months.
Labels: Credit Cards