Credit Card Center Advertiser Disclosure†
10-30-2009 09:00 AM
I'm concerned about my credit score, so concerned about how to move forward right now. I just got one of those APR hikes to 29.9% (or opt out and close acct) letters. I have a high ($12000) balance and paying barely above the minimum--I must have been flagged).
I can opt out and close acct (but I will still have a fairly high APR until paid in full). Then I will lose a card with decent credit limit and my longest credit history! My oldest card.
I can transfer my balance but fear that Citi will just close my card as a result, ending up in a similar result. This way, however, I will have a lower APR for sure for at least a while.
Any advice or experience with this? TIA!
10-30-2009 11:57 AM
10-30-2009 12:19 PM
i got the RJ letter too, several of us have... so i pif the1k balance, and so far no CLD or closure by grantor.
it is not really possible to know with any degree of certainty how they will respond but so long as you don't owe a balance then you have done what you can to minimize any damage they can do going forward.
when carrying a significant balance with the imminent threat of a 29.99 RJ, can't worry too much about what citi will do in response --just have to pif or BT asap and go from there.
10-30-2009 04:29 PM
10-30-2009 06:15 PM
They really want the exposure off their books, so BT'ing the balance fulfills their goal. Assuming BT's an option, here's what I would do:
BT to another card. Use the Citi card normally for a few months and PIF. It would be fine to PIF before or after the statement drops, all you're trying to do is show some activity. Then at some point in time when the balance is zeroed out I would call and ask for a APR reduction. Normailly Citi loves use (not necessarily balances and they hate minimum payments). I would be very surprised if this approach did not yield results.
BTW - One of the things Citi evaluates account preformance on is strength of payment. Averaging 6% of balance payments over a six month period is considered excellent and you can scale down from there. Minimum payments get you bad marks in this area. Citi are the wrong fellas to make consistent min payments to over an extended period of time.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.