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@bschmidt wrote:
Got a notice in the mail today that the rate on my Citi card will be going from 16 to a *minimum* of 29.99. This is about 2 months after it went from 11 to 17. I was angry about that one. I called CS that time and compained and they said I could opt out and stay with the remaining terms until my card expired (early next year) then it would be closed. I initially opted out, but once I cooled down I decided to stick it out since I was planning on paying it off around that time anyway. I have about 6K on it right now with a limit of 7K - had the card for 10 years. I haven't used it much at all in the last year or two. I had been focusing on paying off other stuff first, mostly a pesky line of credit, so I just let the autopay go every month without any additional payments. Have not been late on it at all. Now I get this. Had I known this was coming I would have opted out on the last one. The terms to opt out on this are that the card is closed immediately and the rate change would be effective August 5th if you didn't. I opted out feeling I had no other choice. The CSR I spoke to at Citi said it was due to current economic conditions. What a bunch of bull. They're just trying to raise rates before they can't anymore next year. I'm not going to accept 30+% interest. Funny thing is my other lender (US Bank) just raised my CL 2K to 18K and my rate on that account is 8%. My score is 680 only because of high utilization. I have no late payments on any accounts on my CR. Anyone else in the same boat?Message Edited by bschmidt on 07-17-2009 05:13 PM
Welcome!
This is why! High UTIL on a card now is an invite to AA particularly if it is issued by a money center bank. They are cleaning out their porfolio's and purging high balance revolvers. I would stick it out. It is still a reporting tradeline and will help you with your FICO score no matter what you decide to do with the balance.
Sorry for your trouble!
(Do some reading here. You have lots of company!)
I just got the same letter too. I am getting ratejacked by Citibank after my credit line was decreased and my interest rate was raised from 4% to 16% a few months ago. Now they want to raise my rate to 30% or I have to cancel the card.
This is so outrageous. Especially since the U.S. Government have bailed these guys out. And didn't they just announce a $2 billion profit? Remember, this crooked corporation was bailed out with our money as we are the taxpayers. So after getting our help now they are spitting on us. What a joke!
I am going to call them and cancel my account. I will never deal with Citibank again! I also plan to write the senators and representatives in my state. I urge everyone affected by this to do the same.
creditwherecreditisdue wrote:
Welcome!
This is why! High UTIL on a card now is an invite to AA particularly if it is issued by a money center bank. They are cleaning out their porfolio's and purging high balance revolvers. I would stick it out. It is still a reporting tradeline and will help you with your FICO score no matter what you decide to do with the balance.
Sorry for your trouble!
(Do some reading here. You have lots of company!
Message Edited by creditwherecreditisdue on 07-17-2009 08:28 PM
Thanks for the welcome! I've been lurking for a while. Lots of good information here! Yeah - I know that the util is what's killing me right now (it's actually the only thing). Just seems wrong to jack it to more than the default rate was a few months ago when I haven't done anything wrong with it besides carry the balance. I mean I know Citi is hurting right now (I guess $45B in taxpayer money isn't enough for them) but that's not my fault. I know they can do pretty much whatever they want and that they're getting rate hikes in before the new credit card rules take effect. It's obvious that they don't want me as a customer anymore, so I won't be. I refuse to be screwed over like that, even for a few months. Like I said, I was planning on paying it off early next year anyways. I recently got married and we paid for the wedding in cash (which is why I've been making only the min payments on it lately). Didn't use any of my two CCs at all, which was my goal. Fortunately the vendors I worked with were flexible and allowed payment plans with no interest, but now I'm paying them off instead of putting more towards my balances. Anyways, that's neither here nor there. Mostly, I'm just venting about Citi's business practices. I didn't want to close the account, but if I would have PIF I'm sure they would have closed it anyway.
@californiajeff wrote:I just got the same letter too. I am getting ratejacked by Citibank after my credit line was decreased and my interest rate was raised from 4% to 16% a few months ago. Now they want to raise my rate to 30% or I have to cancel the card.
This is so outrageous. Especially since the U.S. Government have bailed these guys out. And didn't they just announce a $2 billion profit? Remember, this crooked corporation was bailed out with our money as we are the taxpayers. So after getting our help now they are spitting on us. What a joke!
I am going to call them and cancel my account. I will never deal with Citibank again! I also plan to write the senators and representatives in my state. I urge everyone affected by this to do the same.
Message Edited by californiajeff on 07-17-2009 06:18 PMMessage Edited by californiajeff on 07-17-2009 06:20 PM
Yeah - I'm mad as hell too. I'm considering writing my Senators (Feingold and Kohl). Never done anything like that before but who knows. Maybe if enough people raise hell they'll be called on the carpet again. It is ridiculous that we bailed them out and this is how they treat long term customers. I was never particularly happy with them anyways, but thought they'd be better than Cap One or Chase, so I stuck with them. It's obvious they're trying to "clear the decks" and make some money now by having people close their accounts and pay off their balances. No other explanation for it really.
@californiajeff wrote:I just got the same letter too. I am getting ratejacked by Citibank after my credit line was decreased and my interest rate was raised from 4% to 16% a few months ago. Now they want to raise my rate to 30% or I have to cancel the card.
This is so outrageous. Especially since the U.S. Government have bailed these guys out. And didn't they just announce a $2 billion profit? Remember, this crooked corporation was bailed out with our money as we are the taxpayers. So after getting our help now they are spitting on us. What a joke!
I am going to call them and cancel my account. I will never deal with Citibank again! I also plan to write the senators and representatives in my state. I urge everyone affected by this to do the same.
Message Edited by californiajeff on 07-17-2009 06:18 PMMessage Edited by californiajeff on 07-17-2009 06:20 PM
jeff: Just out of curiousity, what type of utilization do you currently have on the card? From everything I have read here and other places it seems like this go-around of ratejackings are targeting high util accounts.
@mark925 wrote:
@californiajeff wrote:I just got the same letter too. I am getting ratejacked by Citibank after my credit line was decreased and my interest rate was raised from 4% to 16% a few months ago. Now they want to raise my rate to 30% or I have to cancel the card.
This is so outrageous. Especially since the U.S. Government have bailed these guys out. And didn't they just announce a $2 billion profit? Remember, this crooked corporation was bailed out with our money as we are the taxpayers. So after getting our help now they are spitting on us. What a joke!
I am going to call them and cancel my account. I will never deal with Citibank again! I also plan to write the senators and representatives in my state. I urge everyone affected by this to do the same.
Message Edited by californiajeff on 07-17-2009 06:18 PMMessage Edited by californiajeff on 07-17-2009 06:20 PMjeff: Just out of curiousity, what type of utilization do you currently have on the card? From everything I have read here and other places it seems like this go-around of ratejackings are targeting high util accounts.
Before I started getting credit line decreases like dominoes falling across the board my util was around 40%. Currently my util on this card is 94%.
As of this date, I have already cancelled my card. Citi was not willing to budge when I called them. I believe they mentioned that I could still use the card at the 16% rate until the card expired and then at that point they would not send me a new card.
Just got my notice New APR will be Prime +13.99 with a minimum APR of 19.99
Have a 1600 balance on a 15K Credit Line
Fico - 804 /798
So they are indeed just running up the rates as fast as possible before any congressional action takes place to cap it - it appears that Utilization is not the driver - they are doubling up on everyone. But where I will be at 19.99 (or so) others hit that 29.99% likely due to high utilization.
Bend over its going to be a long year
Dave