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@ArtistLike wrote:
Can I delete or close this thread? I regret having started this discussion and I'm not enjoying being flamed for criticizing a bank that obviously has a large fan base here. I apologize for having asked the question.
Well, you came for advice, and this forum has lots of advice. You can either follow some of it or ignore it, your choice.
I would suggest though that you consider re-opening the card, in spite of the 18% APR. The APR is meaningless unless you are carrying a balance, and it is likely this card does not have an annual fee. Keeping it mildly used will enable you to have better control over your credit going forward, since it is a long aged account.
Or, leave it closed. As noted, should not be much impact on your credit report.
Good luck!
@ArtistLike wrote:
Can I delete or close this thread? I regret having started this discussion and I'm not enjoying being flamed for criticizing a bank that obviously has a large fan base here. I apologize for having asked the question.
Don't worry. You are fine and don't let this thread get to you. No big deal and I think we gave good information about the impact this will cause on your score.
Sometimes you just need to roll with the punches. It's a forum, not life or death, just opinions.
@ArtistLike wrote:
Can I delete or close this thread? I regret having started this discussion and I'm not enjoying being flamed for criticizing a bank that obviously has a large fan base here. I apologize for having asked the question.
Don't worry, my friend. You don't need to apologize for anything.
@ArtistLike wrote:
Can I delete or close this thread? I regret having started this discussion and I'm not enjoying being flamed for criticizing a bank that obviously has a large fan base here. I apologize for having asked the question.
Just saw this thread -- sorry if you got a bad impression of the forums here. This really is a great forum but sometimes you will get opinions that you don't necessarily want to hear I think in this case, some people just thought it was obvious that Citi (or any bank really) would close your card if you didn't use it for an extended period of time. I'm sorry if you thought anyone was harsh but I honestly don't think anyone meant any harsh feelings.
Anyway, hope you stick around and if you want this thread locked, I'm sure if you asked the Mods, they would do it for you.
I agree with the others urging you to stay. I don't think posters often give much thought to how they come off "in type." "Intent" isn't readily apparent unless one has been reading here a long, long time.
For the record, the bit about Citi wanting you to charge $3000 in a three month period in order to simply forestall the inevitable APR hike is extortion (a better word isn't coming to me at the moment lol). So, someone here gets it.
Hello OP, I remember that time period very well. I remember that exact letter from Citi to my mother. She had the account since 1977, never a late payment, her credit scores are 840+ will all bureaus. I immediately called Citi, they didn't care, the rate was being raised, that was it. Even the 10 supervisors I spoke to, over different calls, didn't care. They claimed it was a "business practice" change due to "market conditions". It was also kind of interesting timing, since they had also offered her a BT offer at 1.9% UNTIL PAID OFF. Anyway, I had her write a BT check to payoff another account, we closed the Citi account, and still now paying the minimum payment at 1.9%. TAKE THAT CITI!! I now have accounts with Citi, but only because one is at 10.24% (Double Cash), and the other is 0% BT promo. I won't hesitate to immediately close those if they take the same action. Anyway, remember that the card agreements will all banks allow them to change terms if "market conditions" dictate, and there aren't any real requirements for their decisions, except the CARD ACT, which isn't overly protective.
Raising interest rates on new balances is normal and permissible. Banks raise interest rates fairly often. My CU CC had an APR of 5.99% prior to 2008. It went up to 7.25% and now is 8.99%. Other CCs of mine have also had their rates change. They cannot (at least to my knowledge) raise your APR for existing balances while your account is in good standing unless it is the expiration of an intro APR. However, they can raise your APR for new balances.
All CC issuers close inactive accounts. They are extending you credit. They cannot extend more than an amount determined by the assets they have to back the credit. The more credit they lend to you, the less they can lend to someone else. This is a little flexible since they do lend out a lot more than they actually can afford to pay if everyone defaulted. However, the basic premise is that every dollar they lend to you is 1 dollar less they can possibly lend to someone else (oversimplification). If they extend you credit for X dollars and you don't use it for years, it is reasonable for them to cancel the card. Some lenders will close accounts after merely 3-6 months of inactivity.
I think the negative reaction from some posters here is based on the fact that what you claim what Citi did is normal for most other CC issuers. Raising APR on new balances and closing inactive accounts is normal. Neither action is predatory.
Edit: One more quick point - Closed accounts help your credit for 10 years before they fall off your report for oldest account/AAoA purposes. However, a closed account will hurt utilization wise if you have balances on other CC accounts. It is even worse if you have a balance on the closed account since the closed account will report with a 100% utilization until paid off. This can really hurt your credit if you have a balance. I can understand the frustration when this happens, but the closure of inactive accounts without notice is standard in today's credit environment.
@Anonymous wrote:Raising interest rates on new balances is normal and permissible. Banks raise interest rates fairly often. My CU CC had an APR of 5.99% prior to 2008. It went up to 7.25% and now is 8.99%. Other CCs of mine have also had their rates change. They cannot (at least to my knowledge) raise your APR for existing balances while your account is in good standing unless it is the expiration of an intro APR. However, they can raise your APR for new balances.
All CC issuers close inactive accounts. They are extending you credit. They cannot extend more than an amount determined by the assets they have to back the credit. The more credit they lend to you, the less they can lend to someone else. This is a little flexible since they do lend out a lot more than they actually can afford to pay if everyone defaulted. However, the basic premise is that every dollar they lend to you is 1 dollar less they can possibly lend to someone else (oversimplification). If they extend you credit for X dollars and you don't use it for years, it is reasonable for them to cancel the card. Some lenders will close accounts after merely 3-6 months of inactivity.
I think the negative reaction from some posters here is based on the fact that what you claim what Citi did is normal for most other CC issuers. Raising APR on new balances and closing inactive accounts is normal. Neither action is predatory.
Edit: One more quick point - Closed accounts help your credit for 10 years before they fall off your report for oldest account/AAoA purposes. However, a closed account will hurt utilization wise if you have balances on other CC accounts. It is even worse if you have a balance on the closed account since the closed account will report with a 100% utilization until paid off. This can really hurt your credit if you have a balance. I can understand the frustration when this happens, but the closure of inactive accounts without notice is standard in today's credit environment.
It depends.
- If a closed CC account with a balance continues to report the original credit limit, then both the balance and the CL of the closed account will be used in the utilization calculations.
- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.
- If a closed CC account is reporting a non-zero CL but has a zero balance, the card will not be included in the calculations.
- If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculations. This is the worst-case scenario with regard to utilization