10-19-2009 05:48 PM
those with balances feel the sting but there have been a number of reports of PIF accounts being subjected to various forms AA incl. RJ.
10-19-2009 06:00 PM - edited 10-19-2009 06:12 PM
10-19-2009 06:20 PM - edited 10-19-2009 06:21 PM
I can tell you this when one bank starts to make money doing those RJ's all will follow right behind. Oh and when those card holders that keep a balance at 29.99% will become their best customer and those pif's will be tossed to the side with AA CLD's to shore up more money for those 29.99 balance carriers wait n see. They will give them lower credit lines like orchard and make double the money with the balances they carry with that rate.
10-19-2009 07:19 PM
10-19-2009 07:25 PM
0.2999 (=29.99%) x $0 balance = $0 in interest payments to the CCC.
Don't let yourself be owned by lenders. Do whatever it takes to unload your CC debt. Keep using your cards for their benefits (rewards programs, consumer protections, simplicity of payment) if you are disciplined enough to stay on top of them, but don't ever owe anything that you can't pay off within a month. Put your energy into paying off your cards, and then building up your savings.
Banks have discovered that we are the great cash cows. This sort of thing is the credit version of date rape. Don't let yourself be vulnerable to this sort of crap.
I really do hope that there is a special place in hell for lenders who are doing this. This is so morally wrong.
Regarding this entire post: Absolutely, positively +1!
10-19-2009 08:30 PM
Depending on your credit history, opt out and close, if at all possible. You don't want to pay this type of rate on a balance of 8k. I would also call and call everyday. You have nothing to lose.
My personal strategy for these rate hikes is to carry a $0 balance on all accounts. I've started this and I will only use credit very sparingly from now on. I really think the worst is yet to come with these banks. By far, this isn't over.
Borrow from family, work more hours but do whatever it takes not to pay these exorbitant fees to these legalized loansharks.
10-20-2009 12:59 AM - edited 10-20-2009 01:03 AM
I really don't get this. What is the common denominator linking the accounts that are getting slammed with the 29.99% APR. There has to be something and I can't contribute. My APR is untouched (6.99%) and they just gave me a fresh 0% APR BT offer good until 21DEC. I don't get it.
I can tell you that I got my DP card last December, I have made very few charges on the card - just enough to show usage, I never reported a balance on the card until I used my 0% BT offer in September and I have gotten two CLI's via the luv button taking me: $4,800 -> $6,050 -> $7.650.
I have no clue as to what makes one good and another bad. Is it a UTIL thing (card/overall)? What I do know is that I have two Providian -> WaMu -> Chase accounts, one closed with a balance at 24.99% and one open at 31.99% (which they will not budge on). These RJ's were an incredibly predatory thing that Providian did to their cardholders and I am very sorry to see Citi going this way. It would seem they are daring the government to act. They had to get their exposure down, but this is one h of way to go about doing it. Very not right!
Between here and one or two other sites I've noticed one thing about many of those that are being affected now is that they are people who tend to PIF or carry a very, very, very small balance on the card.
Your situation sounds about like mine. My APR is untouched (12.24%) and they've been sending me 0% and 1.99% BT offers like crazy (I accepted one and paid it off almost right away) and just had another CLI (the 3rd so far this year) with them a couple of weeks ago taking me to $9,200. I am carrying a balance but am also paying 5x the minimum every single month consistently. I wonder if payment patterns might have something to do with it as well? They might view someone who pays the minimum for a couple of months then a bit more for one month then back to the mimimum more of a risk compared to someone who's consistent in what they're paying or the percentage they're paying in related to the balance owed?
EDIT: One other thought is they might be doing soft pulls and maybe taking action based off of what they find on credit reports? I noticed they did a soft pull on me on 9/7.
Whatever it is, I sure hope I don't get a notice. I've survived this long.....
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO