Citi refuses to lower my interest rate. What am I doing wrong?

[Closingracer99]

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@Anonymous wrote:

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@galahad15 wrote:

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

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Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

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My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

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There's definitely certain areas of the CARD Act everyone should know. Obviously I don't expect everyone to read the entire million page report, but to know a few basics could save you stress and money. 

Yes the CARD Act requires Citi to return the OP's APR back to the original after six on-time monthly payments.

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Yes and since it is variable rate they could lower it and increase the normal rate higher.... They can make all Cards offer a 40% APR should they choose...

[longtimelurker]

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@Closingracer99 wrote:

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@Anonymous wrote:

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@galahad15 wrote:

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

---

Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

---

My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

---

There's definitely certain areas of the CARD Act everyone should know. Obviously I don't expect everyone to read the entire million page report, but to know a few basics could save you stress and money. 

Yes the CARD Act requires Citi to return the OP's APR back to the original after six on-time monthly payments.

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Yes and since it is variable rate they could lower it and increase the normal rate higher.... They can make all Cards offer a 40% APR should they choose...

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Well, they could, but unless the user has missed two consecutive payments, the new rate can only apply to new purchases, and they have to give 45 days notice.

And of course they can close the account at any time, but that doesn't mean that the OP may have a case worth at least asking the CFPB to look at.

[Anonymous]

This is a very good thread. I'm enjoying everyone's responses. Keep up the good work!

[Anonymous]

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@Anonymous wrote:

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@galahad15 wrote:

---

@Anonymous wrote:

---

@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

---

Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

---

My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

---

There's definitely certain areas of the CARD Act everyone should know. Obviously I don't expect everyone to read the entire million page report, but to know a few basics could save you stress and money. 

Yes the CARD Act requires Citi to return the OP's APR back to the original after six on-time monthly payments.

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Which sections do you suggest people read? This question is open to anyone that wants to respond?

[longtimelurker]

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@beautifulblaquepearl wrote:

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@Anonymous wrote:

---

@galahad15 wrote:

---

@Anonymous wrote:

---

@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

---

Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

---

My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

---

There's definitely certain areas of the CARD Act everyone should know. Obviously I don't expect everyone to read the entire million page report, but to know a few basics could save you stress and money. 

Yes the CARD Act requires Citi to return the OP's APR back to the original after six on-time monthly payments.

---

Which sections do you suggest people read? This question is open to anyone that wants to respond?

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One helpful summary is http://www.consumerfinance.gov/credit-cards/credit-card-act/feb2011-factsheet/ and a later one

https://www.stlouisfed.org/publications/inside-the-vault/spring-2014/the-card-act

[Anonymous]

I'll never have another Citi card. I've had nothing but negative interactions with them. Now that the financial crisis is over, they don't need cardholders any more and they're reducing perks and upping fees on their cards. Example: I'm the spouse of a CitiAAdvantage primary cardholder. I pay half of all bills BTW, but to Citi, I'm not the primary card holder, so when I fly alone the $25 bag check fee applies. The card costs a whopping $400 per year and they advertise free first bag check plus priority boarding. To Ciiti, priority boarding is group six. The card gets you into the Admiral's Club, but American Airlines schedules flights so close together, even when an airport has an Admiral's Club, you don't have time to use it. So basically you're paying $400 a year for nothing.

[Anonymous]

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@lhcole77 wrote:

FWIW not everyone PIF on cards, even 2% back cards. Shyt happens, some charges need to be made and it's nice to know that APRs are as low as possible just in case.

I would think that Citi would let you back in with the good kids, but they can definitely be fickle.

If I were you I'd hit up my other lenders for APR reductions. I do it from time to time and now I have multiple cards in 7-8% range for just in case.

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I don't think that makes sense. If you want a low interest rate card get a l low interest rate card.   Reward cards usually have high interest rates. If you don't pay in full what is benefit of 2 percent back?  That will be wiped away even with 7 percent interest. 

[Anonymous]

These latest replies are to an almost year old thread.  Please start a new thread if you want discuss Citi APR reductions.

Thread is now locked.