topic Re: Citi Thank You Preferred APR Increase in Credit Cards

Citi Thank You Preferred APR Increase

bookedirl — Mon, 26 Oct 2015 16:18:27 GMT

Hello,

I recently got a letter from Citi stating my interest rate would increase to 15.99%. My current APR is 8.24% and I've had this interest rate for about 8 years. I've been a member since 05. This was my first credit card and I've always paid on time and occasionally pay interest if I can't pay in full at the end of the month (though pay at least minimum. I called the number on the letter but I think I just spoke with a regular CS Rep who said that it was the decision of the bank and there's nothing I can do.

The letter also lists my 'Fico' score as 773 pulled from Equifax. My credit limit for this card is 17K I also have the double cash card (used to be the cash rewards card - member since 08 on that) with 23K limit and I'm an authorized user on my wifes citi diamonand preferred card that has a 10K limit.

The letter says that the reason for increase is because people with my credit score who are approved today will get 15.99% interest rate and as a result they are increasing it for new purchases.

Anyways... Has this happened to anyone else? What can I do about this? Any help would be appreciated.

Thanks.

Re: Citi Thank You Preferred APR Increase

Anonymous — Mon, 26 Oct 2015 16:26:35 GMT

That really bites. Same thing happened to me with Capital One where I had 7.9% and they raised it to 23.9% and told me to take it or leave it. Well I left it and closed everything. A solution (if there is one) contact the Citi Executive Response Team (unit). With your scores and time in service with Citi why are you being lumped in with everyone else?!

Re: Citi Thank You Preferred APR Increase

kdm31091 — Mon, 26 Oct 2015 16:29:15 GMT

Even the lowest advertised APR for the product now is 12.99. I know you had an old grandfathered rate, but theres no rule that says they have to let you keep it forever.

You can try the EO, but unless you routinely carry a balance it may not matter much. Its just one of those things that can and does happen. Just like we can get APR reductions, they can increase the APR even without you ever being late. It is what it is. Sorry to hear it though.

Re: Citi Thank You Preferred APR Increase

galahad15 — Mon, 26 Oct 2015 16:34:51 GMT

I am very sorry to hear the unfortunate news there OP That is not right at all, of them to do to you! I have experienced RJ/APR increases myself with Citi in the past -- used to have Citi TY cards at 5.99% F and 5.74% V, and they too sent me letters saying I would either have to accept APR increases to the mid-double digits or close out the cards and repay on the existing rates. Needless to say, I closed the cards out at existing rates right away and never looked back. Of course, this was also during the time of CARD Act, and so I had hoped that Citi had since put such RJ practices behind them, post-CARD Act.

Also, hope they are not going to be doing this same APR jackage across the board to other Citi TY cardholders as well? I have a Citi TYP at 9.24% V, and so hope that aren't going to be doing this en masse, to other cardholders...

Re: Citi Thank You Preferred APR Increase

bookedirl — Mon, 26 Oct 2015 16:45:56 GMT

This card I normally use for balance transfers and I actively have a balance with. I understand that they have the right to raise APRs but it seems so sudden and the fact that they just lump me in with any new memeber seems completely wrong and basically double my rate. I would think that being with them for 10 years would carry some weight in their decision. Those "thank you for being a loyal customer" seem to mean nothing to them. What is EO? Are there direct numbers to someone who would actually make this decision or do I have to funnel through to them by contacting CS from the back of the card?

I mean it's not all lost It just means I won't be using this card for future purchases. Whats more bizarre is the day I got this letter my bank (Digital Federal Credit Union) raised my credit limit to 10K and lowered my APR to 8.5%. Although there are no rewards their balance transfers are free and I could just use my citi double cash card for points and transfer balances if I needed to.

Re: Citi Thank You Preferred APR Increase

Anonymous — Mon, 26 Oct 2015 16:47:15 GMT

galahad15 - You are ripe for reaping! Too many low Aprs. Your not doing your share to fund our American Banking System

Re: Citi Thank You Preferred APR Increase

lhcole77 — Mon, 26 Oct 2015 16:49:39 GMT

@kdm31091 wrote:
Even the lowest advertised APR for the product now is 12.99. I know you had an old grandfathered rate, but theres no rule that says they have to let you keep it forever.

You can try the EO, but unless you routinely carry a balance it may not matter much. Its just one of those things that can and does happen. Just like we can get APR reductions, they can increase the APR even without you ever being late. It is what it is. Sorry to hear it though.

Most of my cards are way below lowest advertised APR. Having low APRs is a wonderul thing!

One does not need to routinely carry a balance in order for a low APR to matter much.

OP--I would definitely contact EO. I have some direct numbers and names of employees if you'd like me to PM you. Good luck!

Re: Citi Thank You Preferred APR Increase

Anonymous — Mon, 26 Oct 2015 16:51:16 GMT

There is a post on this site with back door credit numbers that go around the CSR's and other persons with no power. Citi Bank has set up and Executive Response Team (Unit) that deals with the frustrations. Front line CSR's are usually lock out of most decision making so you need to go where things may happen. Can't remember the number. Last year I used the back door and they can only do so much but they worked a second alternative for me on my question.

Re: Citi Thank You Preferred APR Increase

galahad15 — Mon, 26 Oct 2015 16:52:41 GMT

@Spider15 wrote:
galahad15 - You are ripe for reaping! Too many low Aprs. Your not doing your share to fund our American Banking System

Lol, thanks Spider15! You're 100% right, I suppose it was pretty low-hanging fruit there for Citi, at the time...It's all good though now lol, I'm currently happy for the most part atm, with my existing Citi cards

Re: Citi Thank You Preferred APR Increase

galahad15 — Mon, 26 Oct 2015 16:57:49 GMT

@bookedirl wrote:
This card I normally use for balance transfers and I actively have a balance with. I understand that they have the right to raise APRs but it seems so sudden and the fact that they just lump me in with any new memeber seems completely wrong and basically double my rate. I would think that being with them for 10 years would carry some weight in their decision. Those "thank you for being a loyal customer" seem to mean nothing to them. What is EO? Are there direct numbers to someone who would actually make this decision or do I have to funnel through to them by contacting CS from the back of the card?

I mean it's not all lost It just means I won't be using this card for future purchases. Whats more bizarre is the day I got this letter my bank (Digital Federal Credit Union) raised my credit limit to 10K and lowered my APR to 8.5%. Although there are no rewards their balance transfers are free and I could just use my citi double cash card for points and transfer balances if I needed to.

Congrats on the DCU APR reduction and CLI increase OP! Hopefully the much-nicer new APR of the DCU card can take the place of the TY card that Citi RJ'd, for you?

Re: Citi Thank You Preferred APR Increase

bookedirl — Mon, 26 Oct 2015 16:58:13 GMT

@lhcole77 wrote:
OP--I would definitely contact EO. I have some direct numbers and names of employees if you'd like me to PM you. Good luck!

Sure that would be great. Thank you

I always found Citi to be a great credit card company and they always were very generous with their credit line increases. In fact they even let you know that you are eligible for credit line increase on their site. I know I wouldn't close this account being it is my longest active card but It really will leave a salty taste in my mouth knowing they would do this to a long time (at least in my eyes) customer.

Re: Citi Thank You Preferred APR Increase

galahad15 — Mon, 26 Oct 2015 17:09:57 GMT

Also OP: have you thought about applying for the Barclay Ring MC? 8% V go-to APR...

ETA: plus the Ring has no BT fees, in case that could also be helpful for you.

Re: Citi Thank You Preferred APR Increase

bookedirl — Mon, 26 Oct 2015 17:05:12 GMT

@galahad15 wrote:
Congrats on the DCU APR reduction and CLI increase OP! Hopefully the much-nicer new APR of the DCU card can take the place of the TY card that Citi RJ'd, for you?

Yea, that is hopefully the back up plan if I can't figure something out with Citi. Maybe they could offer a compramised rate, though I'm hoping they just leave my APR alone. DCU has bailed me out a few times and they usually offer a nice balance transfer in January for 6months no transfer fee and 0% APR.

Re: Citi Thank You Preferred APR Increase

ddemari — Mon, 26 Oct 2015 17:13:49 GMT

OP- I am sorry! That is absolutely miserable of Citi, they really make me want to shoot off my mouth lol.

I know the banks can do whatever they want on matters like this regarding cards that are over a year old to 20, 30 years old. But, you know Citi, thanks for loyalty and thanks for letting me know that because I have kept my credit excellent for all this time, I should be penalized with a higher rate. My dad's BOA major leagure WMC has a 5.9% apr since he has had the card from 2004, he never revolves a penny or has ever payed interest and probably wouldnt care if they raised the apr because it doesnt matter to him when u dont pay interest. But I on the other hand take these matters a different way, mainly due to lender rage lol.

forget Citi.

Re: Citi Thank You Preferred APR Increase

lhcole77 — Mon, 26 Oct 2015 17:39:00 GMT

@bookedirl wrote:

Sure that would be great. Thank you

Sent

Re: Citi Thank You Preferred APR Increase

CH-7-Mission-Accomplished — Mon, 26 Oct 2015 17:53:43 GMT

There is really nothing you can do except call in periodically and request an interest rate reduction.

The takeaway for readers here is you should never carry a balance on a big-bank card. They may tempt you with an 8% interest rate, but if you acually use it, they will jack you.

Use the big banks for rewards. Use credit unions if you must carry a balance. And use the no fee balance transfers that credit unions offer should you run up a balance you can't pay on a major bank card.

Re: Citi Thank You Preferred APR Increase

kdm31091 — Mon, 26 Oct 2015 20:54:30 GMT

@lhcole77 wrote:
@kdm31091 wrote:
Even the lowest advertised APR for the product now is 12.99. I know you had an old grandfathered rate, but theres no rule that says they have to let you keep it forever.

You can try the EO, but unless you routinely carry a balance it may not matter much. Its just one of those things that can and does happen. Just like we can get APR reductions, they can increase the APR even without you ever being late. It is what it is. Sorry to hear it though.
Most of my cards are way below lowest advertised APR. Having low APRs is a wonderul thing!

One does not need to routinely carry a balance in order for a low APR to matter much.

OP--I would definitely contact EO. I have some direct numbers and names of employees if you'd like me to PM you. Good luck!

Yes, low APRs are nice, just if you dont typically pay interest it doesnt really matter in a financial way. Psychologically maybe.

As far as advertised rate I merely said that because citi may have decided no one can have lower than that rate anymore. Yes, we know your Amexes got lowered but if you actually floated a balance on them repeatedly, theyd probably raise the APR.

Re: Citi Thank You Preferred APR Increase

lhcole77 — Mon, 26 Oct 2015 20:59:08 GMT

@kdm31091 wrote:

Yes, low APRs are nice, just if you dont typically pay interest it doesnt really matter in a financial way. Psychologically maybe.

As far as advertised rate I merely said that because citi may have decided no one can have lower than that rate anymore. Yes, we know your Amexes got lowered but if you actually floated a balance on them repeatedly, theyd probably raise the APR.

It's not just Amex, my Citi rates are lower too, as are Barclays and BofA.

Do you have some sources to site on this? Or is this speculation?

Re: Citi Thank You Preferred APR Increase

kdm31091 — Mon, 26 Oct 2015 21:02:10 GMT

Not gonna turn this into a back and forth but the above poster is right. Generally speaking credit unions are more amenable to balance carrying. Yes, citi, amex or whoever may lower our APRs but if we constantly pay interest, they may use that as an incentive to raise the APR and make more money. It has happened to people if you do some searches. Its not speculation any more than any other anecdote on here. If you want an extended balance carrying tool credit unions are the better choice.

Re: Citi Thank You Preferred APR Increase

bookedirl — Thu, 29 Oct 2015 21:19:21 GMT

Alright so I got a hold of someone in EO and they were investigating the matter for me. They gave me a call back today and said basically I'm out of luck and that there's nothing they can do. They said something about a new firm or something not sure what that means. Basically being a member for many years doesn't entitle you to any benifits and you're just like any other customer who applies. I think they should remove the "Member since xx" from the cards since it means nothing. I'm a bit salty but it's expected here since I don't think this is right. Luckily I have a backup plan with a card that has just as low APR in the event I need to do a balance transfer. I really have no choice but to keep the card open since it's my oldest card and closing it would only have a negative factor on my credit score. I'll just keep it barely a float with a small balance and pay it off.. and just forget it exists now. I may try to call back once they raise it and see if they can lower it. It Feels like I just broke up with my girlfriend (please don't tell my wife! )

Thanks for the help guys and pray Citi doesn't start sending everyone these letters in a mass APR increase.