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Regular Contributor
Posts: 153
Registered: ‎07-01-2008
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Did NOT expect 29.99% ratejack from Citi

I received a letter in the mail that my current 9.24% APR will be increased to 29.99% in order to "provide customers with access to credit" which I personally think is a joke. I currently owe 8k on my Citi card and I do not have the money offhand to PIF, but never paid late. Always on time and more than the minimum.

 

Should I close the account now before I fully accept the changes? I have until November 30. I have a feeling that even if I do accept these changes, they will close my account anyway like what Chase did and will be stuck paying 29.99% interest.

Senior Contributor
Posts: 3,685
Registered: ‎01-10-2008
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Re: Did NOT expect 29.99% ratejack from Citi

if you can't 1. get them to give you back better terms via backdoor, etc., 2. pif or 3. bt to lower rate

then, you must opt out.  you cannot accept such an egregious rate hike, it is not worth it for ANY cc imo.

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
New Member
Posts: 4
Registered: ‎06-08-2009
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Re: Did NOT expect 29.99% ratejack from Citi

I got the same letter, I would tell them to f off as well but I need to keep activity to maintain my American miles and I have a long history with them as well and I don't keep a lot of credit cards so I hesitate to have that disappear for credit reasons.   I just don't carry any balance anymore.  Is Citi the only AA credit card miles company, cause they suck..this is how they treat their "good" customers....60k credit, no lates, and previously carried some balance.
Regular Contributor
Posts: 153
Registered: ‎07-01-2008
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Re: Did NOT expect 29.99% ratejack from Citi

I am just worried that if I don't close it, THEY will ultimately close it for me and I will be stuck with 29.99% APR which is not good at all. I have already called and the CSR was very cold with me. I will think this over...
Established Contributor
Posts: 512
Registered: ‎06-08-2007
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Re: Did NOT expect 29.99% ratejack from Citi


thatdoodjohn wrote:

I received a letter in the mail that my current 9.24% APR will be increased to 29.99% in order to "provide customers with access to credit" which I personally think is a joke. I currently owe 8k on my Citi card and I do not have the money offhand to PIF, but never paid late. Always on time and more than the minimum.

 

Should I close the account now before I fully accept the changes? I have until November 30. I have a feeling that even if I do accept these changes, they will close my account anyway like what Chase did and will be stuck paying 29.99% interest.


 

Best thing to do is OPT- OUT. If you don't then that APR will kick in. If your scores are not bad, you can alsways apply for another CC, to cover the CITI card.
Established Contributor
Posts: 536
Registered: ‎08-26-2008
0

Re: Did NOT expect 29.99% ratejack from Citi

In the past, another way to sidestep the Citi ratejack was to change your card to another Citi card. I don't know if that still works.
Regular Contributor
Posts: 153
Registered: ‎07-01-2008
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Re: Did NOT expect 29.99% ratejack from Citi

I also have  Discover and an AMEX. I also had a Chase that was once a Providian.... but I was among the millions that Chase burned. 

 

It just doesn't look good that I have a closed account (Chase) and another one (Citi) that I will close with an 8k balance. Yikes!!! Thank you for all of your help! I will never do business with Chase or Citi again. I don't think I can pay off $8k in 3 months and I will not be paying $250 worth of interest per month on that huge balance. This is beyond ridiculous. Are there still any decent banks out there???

 

Senior Contributor
Posts: 3,685
Registered: ‎01-10-2008
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Re: Did NOT expect 29.99% ratejack from Citi

[ Edited ]

thatdoodjohn wrote:
I am just worried that if I don't close it, THEY will ultimately close it for me and I will be stuck with 29.99% APR which is not good at all. I have already called and the CSR was very cold with me. I will think this over...


if you don't close it, you will be stuck with the new rate.   

won't pay to leave it open and accept the new rate just to worry whether or not they'll ultimately close it anyway. 

Message Edited by score_building on 10-19-2009 12:29 PM
FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
0

Re: Did NOT expect 29.99% ratejack from Citi

For every new card Citi approves with a 0% APR for 6-9 a current cardholder has to cover the cost.  To cover the cost some of the current cardholders rate increases.
Regular Contributor
Posts: 153
Registered: ‎07-01-2008
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Re: Did NOT expect 29.99% ratejack from Citi

I just spoke to another CSR he seemed really apologetic about the letter but I was calm and assured him that it's not his fault! I asked about switching to another Citi card, as I have done in the past to avoid a RJ,  and he basically said that in the past that was an option, but this time around, there is no other way around it -- either accept or reject.

 

And of course, I will not be doing any further business with Citi again.

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