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Posts: 6
Registered: ‎08-31-2008
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Credit card rate increasing

[ Edited ]
So I recieved a letter from Citi saying that my APR for purchases is about to increase from 5.9% to 14.9%. Currently I have a balance of $19000, $14000 of which is locked in at a 5.9% balance transfer rate until paid off. The other $5000 is @ 5.9% but about to increase. I just spoke with a customer service rep at citi regarding the letter I recieved and they said that my options are as follows. First of all the $14K at 5.9% will not increase. The $5000 will increase to 14.9% or I can opt out of the increase and my rate will stay the same until my card expires in October 2011. At which time they will CLOSE my account regardless if I have a balance or not. If I still have a balance in 2011 the balance APR will stay at the 5.9% until paid off.

So my question is the following. Do I opt out of the increase and let them close my account in 2011, or do I let them increase my rate and hope to have them lower it with a phone call. I have had this card for almost 10 years and I know that people say to keep your oldest credit lines open. Please give me some advice. I have 2 days to figure out what I am going to do.
Message Edited by sofocused978 on 12-01-2008 09:36 AM
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Credit card rate increasing

This will be happening a lot.  See here for some general comments, which might be boiled down to "you have to do the math"



The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

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