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Credit card rate increasing

New Member

Credit card rate increasing

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
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Super Contributor

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"

 

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=131371&jump=true

 

 

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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