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Outrageous increase. What is Citi point? They must be compensating for the 0% offers.
The Citi account will still continue to report for the next 10 years. You shouldn't see any decreases in your FICO scores because of the account closure. Paying down the balance will increase your scores.
Good luck in getting your first apt in NY.
I agree with DI...since they are closing your account with a balance they should continue to report the original $20000 limit to credit bureaus, and you should see no decrease in credit scores.
They gave you no reason for this APR increase?
Try to pay it down and keep the card..Its your fault for carrying high balance at first, they are looking to make some profits especially on those who carry balance and keep adding more debt to it..
Once you pay it off, eventually you can ask for APR decrease..
There was a story about the Citi APR increases in the CB forum in late June. Selected accounts (2.2 million total) were increased to 14.99%, 19.99%, or 29.99%. Notices were to be sent out in July, the APR was to be effective August or September billing cycle, and the opt-out deadline was to be 9/30/09.
Approximately 500,000 accounts were targeted to be increased to 29.90%. Those accounts were targeted based on balance carried and "payment strength", which refers to the average payment as a percentage of balance. So if typical payments were close to the minimum (such as 1.5% or 2%), and the balance was significant, there was a very high chance of being targeted. It did not appear that credit score was included in the criteria.
For accounts where a balance is being carried, Citi is increasingly focused on "payment strength" and is most comfortable when customers make payments that are more than 5% of the balance ...
@Anonymous wrote:
Has anyone gotten a letter from Citibank about the rate increase effective September 30, 2009? A change in terms, I decided to opt out and now my credit card with a balance of 12000 with a credit limit of 20000 is being closed. I have a fico score of 767 as of September 25th and I have never missed a payment in my life with any of my credit cards. FIrst off, I don't understand why they're doing this... and secondly, I'm curious to how this will affect my credit score since they are closing my account with a balance. Since, I decided to opt out, I can still pay at the original rate of 7.49% until paid off, but with the credit card being closed my utilization ratio will be higher. Can I offset that by being put as an authorized user on my wife's credit card? I'm only 29... my wife are and I planning to buy our first apartment here in New York, so were trying our best to keep our score high for the best rate. Any advice of how to keep my score in tact with the account closure and how badly will it affect my score? Thanks in advance for any suggestions and information.
Welcome to the forums!
This is not correct. This TL will continue to be included in your UTIL calculation same as before until paid in full. Unless you are able to quickly liquidate the $12K balance you are probably going to want to close this card to preserve your old APR. Always check your mail for subsequent CIT notices - some of the money center card issuers have been changing terms a second time after the card is already closed! If that happems you have to opt out again!
@Anonymous wrote:There was a story about the Citi APR increases in the CB forum in late June. Selected accounts (2.2 million total) were increased to 14.99%, 19.99%, or 29.99%. Notices were to be sent out in July, the APR was to be effective August or September billing cycle, and the opt-out deadline was to be 9/30/09.
Approximately 500,000 accounts were targeted to be increased to 29.90%. Those accounts were targeted based on balance carried and "payment strength", which refers to the average payment as a percentage of balance. So if typical payments were close to the minimum (such as 1.5% or 2%), and the balance was significant, there was a very high chance of being targeted. It did not appear that credit score was included in the criteria.
For accounts where a balance is being carried, Citi is increasingly focused on "payment strength" and is most comfortable when customers make payments that are more than 5% of the balance ...
If I remember correctly 6% average payment over a six month period is considered golden!