Citi rate hike...need help!

[Anonymous]

Hello,

I've more or less been a lurker on this site, but I now have questions.

I've read in the news that the Federal Reserve will require creditors to reevaluate rate hikes post January 2009.  Well, Citi increased my purchase APR in December 2009, from 13% to 17.99%.  I hadn't been late on a payment in more than 3 years, the utilization was bout 65% with a credit limit of $6,400. I was slowly, but diligently paying off my balance. The reason given in the letter; the economy and cost of business.  I called and pleaded that very same day I received the letter, but the CSR could only advised that I accept or opt out.  Opting out isn't something I considered because this is my first credit card, which I opened in 2003 while in college.  Closing it would decrease my average age of credit significantly.

So this morning I read that creditors will be required to re-evaluate rate increased that aren't based on missed payments, etc.  My case fits the bill.  I called this morning to find out what options might be available for me, but I received the same answer as I did back in December 2009.  I mentioned the new credit card law that will go into effect in August, and the CSR didn't know what I was talking about.  Citi has already recouped more than 1.5 the current balance in payments, and it sort of feels like they are taking advantage of the fact that I'm a slow balance reducer (if that makes sense).

Are there any strategies that I should employ?  Any advice would be much appreciated.  I plan on calling one of the back-door Citi numbers.  Anything I should know before doing so?

Thanks.

[Anonymous]

I think CIti is an EX puller.  You don't know your

score with them?

[Anonymous]

I haven't updated my sig in awhile.  Last I checked, my Experian score was 724 as of November 2009.

[score_building]

You actually got 'lucky', many who never missed a payment were RJ to 29.99 by Citi last year around that time.

Unfortunately, high util and slow pay can derail a request for APRD.  Not worth creating a contentious exchange by citing laws to csr, it is not really their job to thorougly understand new laws or how they impact. 

I would try to pay off as close to 6+% of balance monthly so you can create a stronger rolling 6 mos payment score with citi (this worked for me) otherwise, if you can somehow BT that would temporarily provide the relief you are seeking.  If carrying balances with the big banks you expose yourself to more risk for AA, instead if you carry balances (not recommending that you continue to do so) use a cu cc.

[Anonymous]

My Fico scores are quiet good all over 700 and my rates are in the mid teens APR..I have Citi AA Bronze with 13.24% and Citi Platinum Select at 15.24%..

Well I can't control the APR and I dont think they will ever lower it. I know it's a bit high but I can always control my balance which I always do. If you keep the balance low, the interest charge will be low and even better if you pay in FULL every month the high APR doesn't mean anything..

If you can control your balance and your spending, you can show them that they aren't making money off you..

Credit Cards are really bad and it's that piece of plastic that keeps you on spending and spending..I have to admitted that CC stinks and the

more rewards card you get, the deeper debt you get...Stay away from it as you can..

[Travis-84]

Its my understanding that they are allowed to increase their rate, but it must only apply to new balances.  So your existing balance will be at the old rate, and only new charges would be at the new rate.   When you are paying off balances at multiple interest rates, I would imagine that citi would apply the minimum payment to the lowest rate, since that is in their best interest, but any payments made above the minimum must be applied to the balance with the highest rate.

Somebody please correct me if this is wrong.

[Anonymous]

That isn't the case in my situation.  I just took a look at my most recent statement, and the Nominal APR of 17.99% applies to my entire balance.  I've made small purchases here and there after the change.  If what you're saying is true, there should be multiple APRs listed, correlating to different balances.

[score_building]

For those who didn't opt out of a pre card act RJ, it was permissible for a ccc to apply the rate increase to the entire balance.