CitiCards rate jack--WTF?

mgs2010 · ‎10-22-2009

OK so I need some opinions...CitiCards rate jacked me from 7.24%V to 29.99%!!!!!!!! I am in complete shock considering I have never paid late once, its one of my older cards but not the oldest, had a 34k (just raised it a few months ago!) I owe the card 14,300.00 and I have no option but to opt-out and have them close the card so I can continue to pay down the balance under my current terms. How badly will this affect my fico score?

I have the following other cards

HSBC Rewards Mastercard 0 bal 4,500 limit

Discover 0 bal 4,100 limit

Kohls 0 bal 2,000 limit

ChaseFreedom 0 bal 14,500 limit

Chase+1 (facebook cc) 0 bal 10,000 limit

b of a amex 0 bal 7,200 limit

toyota rewards visa 600 bal 1,850 limit

Capital One 1,500 bal 7,500 limit

I don't really have the option of transferring the balance anywhere, nor do I really want to because the interest is really low at 7.24v

soo.....what kinda hit should I expect on my fico? my current fico is 704 as of yesterday ....i just opted out of the citi rate hike today and i'm worried about what effect this will have on my score.....good thing I just leased a new car last weekend so I won't need to worry about any big ticket purchases for awhile...

Thanks

smallfry · ‎10-22-2009

The available credit still will be figured into your utilization so your scores should not go down at all. Sorry OP.

mgs2010 · ‎10-22-2009

even though when I opted out they closed the card to further purchases? They stated to me that the card will be reported closed per consumer request on my credit report. I've heard that nothing can look worse for your fico then a large balance on a closed account....anyone have the facts on that?

Anonymous · ‎10-22-2009

I believe that ,as long as you owe a balance on the card, the original credit limit will also be reported. Check out this thread:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=189004&view=by_date_as...

Message Edited by VEEnVEGAS on 10-22-2009 08:10 PM

creditwherecreditisdue · ‎10-22-2009

@mgs2010 wrote:
even though when I opted out they closed the card to further purchases? They stated to me that the card will be reported closed per consumer request on my credit report. I've heard that nothing can look worse for your fico then a large balance on a closed account....anyone have the facts on that?

You have to do what you have to do to treat yourself right financially, "Closed by consumer" is not an issue and the CL will still be included in your UTIL. It is terrible to lose a huge CL like that, but I'm sure that was part of Citi's strategy. In the long run you'll be fine.

haulingthescoreup · ‎10-23-2009

mgs2010 wrote:
even though when I opted out they closed the card to further purchases? They stated to me that the card will be reported closed per consumer request on my credit report. I've heard that nothing can look worse for your fico then a large balance on a closed account....anyone have the facts on that?

You're good. Just hope that they keep reporting your current CL, and then it will be exactly as if the card were still open.

I was wrong earlier when I posted about other possibilities. If a lender reports the CL as $0 on a closed card with a balance, you're also OK, because the card (and balance) will be ignored for util calculations, since the CL is $0. It will look ugly to other lenders, of course, but it won't hurt your score.

So you're OK if they keep the original CL, and you're OK if they change it to $0. Where you won't be OK is if they start "chasing the balance" --reducing your CL every time you make a payment. This will make the card report as high util throughout the payoff process.

We don't have any idea what Citi's going to do about balances during this 29.99% frenzy, so just cross your fingers.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

creditwherecreditisdue · ‎10-23-2009

If Citi does anything other than continue to report the then current balance and the CL at the time of closing I would consider it punative. If they were punishing me on top of the AA I would file an official complaint with the Office of the Comptroller of the Currency:

http://www.helpwithmybank.gov/

If they inflicted the 29.99% AA on me I would probably file a complaint with the OCC over that, too, but that's just in my nature...

Anonymous · ‎10-23-2009

@creditwherecreditisdue wrote:
If Citi does anything other than continue to report the then current balance and the CL at the time of closing I would consider it punative. If they were punishing me on top of the AA I would file an official complaint with the Office of the Comptroller of the Currency:

http://www.helpwithmybank.gov/

If they inflicted the 29.99% AA on me I would probably file a complaint with the OCC over that, too, but that's just in my nature...

To follow up on your suggestion, I would take the complaint one step further. The Office of the Comptroller is the regulatory arm for the government. However, the government is the majority and controlling shareholder of CITI. The same government that yesterday slashed the officers' pay from the largest 7 financial institutions taking bail-out money. Their rationale was that such exorbitant salaries were unconscionable. How can the government call exorbitant salaries unconscionable while allowing CITI, which it controls, charge unconscionable interest rates to customers who are not in default.

Send your letter to Secretary of Treasury, the controlling shareholder of CITI.

creditwherecreditisdue · ‎10-23-2009

If you want to have any hope of lodging a complaint that might actually benefit you personally complain to the OCC. You can send a copy of what you submit to the Secretary. He'll take the pile he receives and use it for a doorstop.