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New Member
hellokitty
Posts: 5
Registered: ‎07-07-2007
0

im scared

:smileysad:i got a letter today from my citicard that my rate was going up from 7.99 to 29.99 percent im so scared dont know what to do.
Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
0

Re: im scared

Join the club, a lot of us got that letter! I'm BTing my balance to Chase at 0%, then leaving my Citi card alone.
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
New Member
hellokitty
Posts: 5
Registered: ‎07-07-2007
0

Re: im scared

omg so i should try to do the same im so scared my balance is 16000.00 
Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
0

Re: im scared

Try the backdoor number stickied at the top of this page for the Citi retention specialists, and tell them you really want to keep this account but won't have a choice but to BT the balance and keep the account idle if your rate goes that high.

It's worth a shot - otherwise, opt out at your current rate (it will close out your Citi card, though) and apply for another card down the road when you pay this one off.

Welcome to the forums, by the way!

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
New Member
hellokitty
Posts: 5
Registered: ‎07-07-2007
0

Re: im scared

well ill do that , im just mad that if i opt out and it close my credt card my fico will drop but oh well we work so hard to get where we are.
AJ
New Member
AJ
Posts: 12
Registered: ‎04-06-2007
0

Re: im scared

Actually - if you have a balance it should NOT affect your FICO score.  It will not affect your score until you pay it down to zero and then the available credit you had will no longer be there for your utilization calculation.  while you are paying it down my understanding is it will not affect your utilization even though you opted out. 

 

http://credit.about.com/od/creditreportscoring/qt/closecardscore.htm

 

I would be happy to hear from anyone if this is NOT the case - there is a lot of misinformation out there.  I accepted a rate increase on a card I really should have opted out of because I thought It would show as a negative utilization. 

Valued Contributor
Lady_Scarlet
Posts: 2,385
Registered: ‎09-10-2007
0

Re: im scared

[ Edited ]

My BT is processing and shoud post in another 2-4 days at Citi. I 'accepted the new terms' before I BT'd... and I am keeping the card ( a $5 charge every other month to keep it active) and if they choose to close it then that's their perogitive however I wil be VERY VOCAL about bailout, exec compensation and re-payment to me the taxpayer.  Actually, I feel we should call due their bailout money and force them into bankruptcy and let them be broken up.  The only bad business decison made by their current/never late, pays more than min or PIF customers was to do business with them.

 

If you can't BT then opt-out (giving them way less interest) but before doing that (you should have until the east Nov 30th if not into December - check your notice) - try to get a replacement card (it does not need to be a HUGE CL only one useful to you).

 

Many people will probably miss the notices or think they are more 'bank junk' and never open them and get stuck with the new rate - I think this is what they are counting on.

 

Out of 6 cards with Citi - I have gotten notices on 4 so far: the MC (12.24 to 29.99), Exxon(23 to 24.99, Sunoco (18.24 TO 24.99) and HomeDepot (19.99 to 26.99). Ony the HD and the MC had balances (HD at 0% promo).

Message Edited by Lady_Scarlet on 10-22-2009 05:37 PM
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747
New Member
hellokitty
Posts: 5
Registered: ‎07-07-2007
0

Re: im scared

thank yop very much ill do that.
Regular Contributor
johnson_long
Posts: 163
Registered: ‎08-27-2008
0

Re: im scared


 

Actually - if you have a balance it should NOT affect your FICO score.  It will not affect your score until you pay it down to zero and then the available credit you had will no longer be there for your utilization calculation.  while you are paying it down my understanding is it will not affect your utilization even though you opted out.


 

 You are mis-reading that, The balance on a closed card will count toward total utilization,, However the credit limit of the closed card wont count toward your available revolving credit,  That means a closed card with a high balance, could end up leaving you with a utilization of more than 100% or 1,000%,, which FICO scoring will hammer you hard on, 

 

The statement that as the balance is paid down and as the utilization improves, so will your FICO score is accurate,,

 

 

 

AJ
New Member
AJ
Posts: 12
Registered: ‎04-06-2007
0

Re: im scared

[ Edited ]

johnson_long wrote:

 

 

 You are mis-reading that, The balance on a closed card will count toward total utilization,, However the credit limit of the closed card wont count toward your available revolving credit,  That means a closed card with a high balance, could end up leaving you with a utilization of more than 100% or 1,000%,, which FICO scoring will hammer you hard on, 

 

The statement that as the balance is paid down and as the utilization improves, so will your FICO score is accurate,,

 

 

 


No, I opted out of a Chase card and they still report my balance as well as my credit limit as if the card was still open.  As I pay the card down my utilization on the card appears to be lowering so it improves my credit score temporarily.  When the card is paid down to zero, THEN the credit limit will no longer be reported and my overall utilization will shoot up  based on my other cards.

 

So if I have:

Card 1  CL = 1000  Bal = 500

Card 2  CL = 1000  Bal = 1000

 

I am 75% utilized - I opt out of card 2, since it has a balance it is still reported the same and my utilization is still 75 %

 

9 months later

Card 1  CL = 1000 Bal = 500

Card 2                  Bal = 200

 

Utilization would be (500+200)/(1000+1000) = 700/2000 =  35% so my utilization has dropped

 

2 month later I pay off card 2:

Card 1 CL = 1000 Bal = 500 - I jump back to 50% utilization because I no longer have the credit line of the zero balance closed card factored into my calculation. 

 

 

Now, I agree closing a credit card with a zero balance and a 1000 credit line would have an immediate impact on utilization, but while there is a balance it does not get reported at over 100% - That being said I guess the issuer can keep lowering your reported credit line to equal your balance in which case the card would always show 100% utilized but that would still not drastically affect the overall utilization unless it was the highest balance you had.  But as i said, The card i have with Chase is not behaving that way and one I opted out of with BOA a few years ago did not either. 

Message Edited by AJ on 10-22-2009 03:04 PM
Message Edited by AJ on 10-22-2009 03:10 PM

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