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Established Member
Posts: 122
Registered: ‎04-27-2007
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Citi Card..cancel or keep?

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

Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
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Re: Citi Card..cancel or keep?

how much do you have on the card, what is the cl, and how long do you need to pay off the amount?
__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: Citi Card..cancel or keep?

We used this card to pay for college and so it's almost 7,000!!  I always pay more than due, so it will take awhile.  I do feel we do not need it any longer and plan to probably pay off and see what happens to rate once it's paid off.  Right now that is what I think I may do.  Not sure though.  I still have some time to figure it all out.  With a 30% rate, I'll figure out our min. payment and then how much more we can apply to get it paid down, but at that rate I may be 100  years old!  I hate cc cards and wish we never started to get them.  I would tell everyone who is starting out to get one and that's it!!  
Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
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Re: Citi Card..cancel or keep?

what's the credit limit and old rate?
__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: Citi Card..cancel or keep?

This credit limit was $10,000!  the rate now is 11.24..  It will go up to 29.99% is Aug.
Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
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Re: Citi Card..cancel or keep?

Yowser - personally, I would not accept the new terms. I would pay off the balance over the next few years with the old APR and then let it close on its own. Good luck and sorry to hear about this!
__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: Citi Card..cancel or keep?

Since we still have some credit on this card, we are now laughing about how we should use it at the 11.24 rate, and then cancel it in Aug and keep the supposedly 11.24% low rate.  Just not sure how long that rate will last!  thanks.
Established Member
bschmidt
Posts: 33
Registered: ‎07-17-2009
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Re: Citi Card..cancel or keep?

[ Edited ]

Hi Dee-

 

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.

Message Edited by bschmidt on 07-18-2009 06:43 PM
Frequent Contributor
ocheosa
Posts: 372
Registered: ‎06-15-2007
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Re: Citi Card..cancel or keep?

Wow, sorry to hear about this :smileysad: 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.

 

01/04/10 TU 778 EQ 731
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02/12/09 TU 722 EQ 704 EX 690
EQ sensitive to inqs & student loan.
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: Citi Card..cancel or keep?

[ Edited ]
I hear you!!  Sounds like many are going through this.  I did not yell or complain to the customer service person, as they have nothing to do with it.  Awhile ago I got a nice lady and she said  there is nothing she can do.  I called again just 10 mins ago and got a [foreign-sounding] person and hung up and called two more times.  None were Americans, so I will deal w/it on Monday and call during regular hours.  I will also send an email, but I agree w/you.  We will not pay the high rate..no way.  Opting out is better anyway.  Your rate hopefully will stay pretty low, but who knows, but it will also keep you from spending more.  Good luck. 
Message Edited by dee on 07-18-2009 06:51 PM
Post edited to remove ethnic reference.  Please refrain from such specific references on these boards. - Scamp, Mod.
Message Edited by Scamp on 07-18-2009 06:54 PM

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