So I'm thinking of consolidating all my CC debt onto one card (Citi, to be specific) for a low rate over the lifetime of the balance. I saw the Citi stock wasn't doing so well recently, and wondered what that might mean for my BT in the future. If Citi goes under or is restructured or whatever, can they change my BT rate even though I've been compliant with the terms udner which I initiated the BT?
(title only edited to remove derogatory slang expression)
Don't pay much attention to Citi stock's troubles. Here are few reasons why:
1) (edited to remove political reference) Despite all the issues with Citi, it will not be nationalized.
2) Stock drop actually stems from the fact that investors are engaged in capital structure arbitrage, where they are going long preferred shares and short common equity. This is a risky trade but would allow them to make a quick buck. If on the other hand, government decided to do something unexpected, such as suspend mark-to-market accounting, we could see a short covering rally and stock will jump.
If Citi offers you a good deal on BT, by all means take it.