Why didn't my request to lower interest work?

Anonymous · ‎06-28-2016

I've had a Citi Diamond Preferred card for about 8 years now. It started out at 10.99% interest. In the fall of 2012, I was laid off from my job and I missed ONE payment. I got back on my feet pretty quickly and made all the other payments on time. Because of the single missed payment, my interest jacked up to 27.99%. So, ever since then I have been paying that card... at the high interest rate, never ever missed a payment since. So, here we are almost 4 years later and I finally get that card paid to $0.00. (Yayyyy, me!!!). I called Citi and said "I have been a customer for 8 years. I know I missed a payment back in 2012, but I have payed on time ever since. Is there anything you can do as far as lowering my interest?". After being placed on hold for a while, the lady came back and asked "Why did you miss a payment?" I again responded "I was laid off from my job... but I have made payments for the past 3.5 years, on time." After another hold.... I was told that there was NOTHING that they could do for me.

Should I just give up and close this account? I'd really hate to lose an 8 year old account. Plan B would be just to keep it open and ONLY use it to pay my Netflix bill.

takeshi74 · ‎06-28-2016

Your call to make. Consider the info in the Closing Credit Cards thread linked in the Helpful Threads sticky as well as your requirements.

You'd have to ask Citi why they won't lower the APR. It's their requirements that you have to meet. Generally, APR reductions aren't just a matter of the account itself but your entire credit profile. However, your story makes it sound like the late is the issue. If you pay every statement balance in full the APR won't matter anyway.

Anonymous · ‎06-28-2016

OK. I'll go check those out. Thank you.

Anonymous · ‎06-28-2016

@Anonymous wrote:
I've had a Citi Diamond Preferred card for about 8 years now. It started out at 10.99% interest. In the fall of 2012, I was laid off from my job and I missed ONE payment. I got back on my feet pretty quickly and made all the other payments on time. Because of the single missed payment, my interest jacked up to 27.99%. So, ever since then I have been paying that card... at the high interest rate, never ever missed a payment since. So, here we are almost 4 years later and I finally get that card paid to $0.00. (Yayyyy, me!!!). I called Citi and said "I have been a customer for 8 years. I know I missed a payment back in 2012, but I have payed on time ever since. Is there anything you can do as far as lowering my interest?". After being placed on hold for a while, the lady came back and asked "Why did you miss a payment?" I again responded "I was laid off from my job... but I have made payments for the past 3.5 years, on time." After another hold.... I was told that there was NOTHING that they could do for me.

Should I just give up and close this account? I'd really hate to lose an 8 year old account. Plan B would be just to keep it open and ONLY use it to pay my Netflix bill.

Keep this card. You have a solid history of ontime payments with this card...8yrs is a long time. I'd keep it and put Netflix on it or just SD the card for now. There's no AF so forgetaboutit for a while. The fact it's ZERO balance, the % should not be a concerned but I know it's the principal that you are upset about. Let some time pass and when their system realized you are not swiping the card, you'll get offers to use it and that's when you hit them up for lower % or PC to another card.

Anonymous · ‎06-28-2016

Sounds like a plan. I'll just SD it and call them again in 6 months.

Ghoshida · ‎06-28-2016

OP, great job in turning your finances around! And now that you have bounced back from difficult times, do the following :

(1) ask Citi to change the product to Double Cash
(2) make full balance payment every statement

That way, you will earn rewards on your spend and get back some of the interest you paid.

gdale6 · ‎06-28-2016

The interest rate that is set is a function of risk, they dont like something that they see currently on your CR. I would work on getting whatever these issues are taken care of and then try again. You didnt post what your FIco scores are and if they are low this too is most likely a reason.

Anonymous · ‎06-28-2016

ask Citi to change the product to Double Cash

I actually did convert it to double cash. I just didn't mention it because I didn't think it was relevant.

Anonymous · ‎06-28-2016

The interest rate that is set is a function of risk, they dont like something that they see currently on your CR. I would work on getting whatever these issues are taken care of and then try again. You didnt post what your FIco scores are and if they are low this too is most likely a reason.

I think you just figured it out for me. I just paid the one and only collection I had and it hasn't hit all of the agencies yet. It just hit Equifax as of a few days ago. I'll SD the card for a while and try again later. Thanks.