I just signed onto this forum again as today. I got my letter from Citi stating I have until Aug. to figure out if I want to keep my card with an outrageous percentage rate, or keep low rate and cancel card at same time. Unreal!! I have never been late and we have a great credit score. This is a card we use a lot and it does have the highest balance, but when it's almost 30%, there is no way I will want to have them steal more money from us.
I am afraid if I opt to cancel card and keep rate low, they will increase rate again in a few months, even if I keep paying on time!!! What would you all do???
If we cancel card, it will effect our score. We have a good score now. Thanks
I got the same letter yesterday and posted my venting message last night. I was at 11 like you, then got a letter back in April or so saying they were going to jack it up to 17 (which I was mad about but kept it anyways), now this. Also, I think the rate (if it's the same as the one I got) will be anywhere from 29.99 to 32.99. 29.99 is the minimum. There's no way I was going to accept those terms. I opted out yesterday. I've been wondering if they can jack up the rate on the balance yet or do they have to keep it as is 'til it's paid off now? The account was closed as soon as I opted out. I was mad when I called and let the CSR have it. Of course they didn't budge. I'm sure they get that all the time though. I've had my card with them for 10 years, no late payments (I autopay through their system). Some loyalty, huh? I do realize that they can do whatever they want though. Just got married. Didn't use any cards for our wedding - paid cash or got on payment plans with the vendors, but because of that I had just been paying the minimums lately. I do have high util (6k with a 7k limit), so I'm sure that's what they're basing it on. There's nothing else it could be for me. The CSR said that they're raising their rates for all customers because of "current economic conditions in the financial markets". Whatever. I asked if everyone had their rate raised to 30%. I feel the same as you though. I got into trouble with my CCs a few years ago when I had a lower paying job and too many expenses and threw caution to the wind thinking I would just get caught up when I got a better job. Stupid move looking back at it now, but you live and learn. I've been working on paying them down ever since. I don't use them for anything now except for hotel authorizations and rental cars. My plan is to pay off a big chunk of debt early next year with my tax return and bonus. My wife is in school right now too so we've just been treading water 'til she gets out next year and starts working again in a much better paying job. It's a slow process, but I'm determined to get out from under this CC debt. Good luck to you as you do the same.
Wow, sorry to hear about this Is there any reason why you didnt get a Citi Student Loan? The rate would have been fixed. An unsub stafford is at 6.8% fixed. The rates are even better if you qualify for the sub stafford.
Maybe you could try to call them and explain you are using this card for your tuition and see if they can help you out.