topic Re: Citi Card..cancel or keep? in Credit Cards

Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 00:07:21 GMT

I just signed onto this forum again as today. I got my letter from Citi stating I have until Aug. to figure out if I want to keep my card with an outrageous percentage rate, or keep low rate and cancel card at same time. Unreal!! I have never been late and we have a great credit score. This is a card we use a lot and it does have the highest balance, but when it's almost 30%, there is no way I will want to have them steal more money from us.

I am afraid if I opt to cancel card and keep rate low, they will increase rate again in a few months, even if I keep paying on time!!! What would you all do???

If we cancel card, it will effect our score. We have a good score now. Thanks

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 00:15:40 GMT

how much do you have on the card, what is the cl, and how long do you need to pay off the amount?

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 00:23:40 GMT

We used this card to pay for college and so it's almost 7,000!! I always pay more than due, so it will take awhile. I do feel we do not need it any longer and plan to probably pay off and see what happens to rate once it's paid off. Right now that is what I think I may do. Not sure though. I still have some time to figure it all out. With a 30% rate, I'll figure out our min. payment and then how much more we can apply to get it paid down, but at that rate I may be 100 years old! I hate cc cards and wish we never started to get them. I would tell everyone who is starting out to get one and that's it!!

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 00:35:20 GMT

what's the credit limit and old rate?

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 00:39:11 GMT

This credit limit was $10,000! the rate now is 11.24.. It will go up to 29.99% is Aug.

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 01:01:09 GMT

Yowser - personally, I would not accept the new terms. I would pay off the balance over the next few years with the old APR and then let it close on its own. Good luck and sorry to hear about this!

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 01:04:32 GMT

Since we still have some credit on this card, we are now laughing about how we should use it at the 11.24 rate, and then cancel it in Aug and keep the supposedly 11.24% low rate. Just not sure how long that rate will last! thanks.

Re: Citi Card..cancel or keep?

bschmidt — Sun, 19 Jul 2009 01:43:09 GMT

Hi Dee-

I got the same letter yesterday and posted my venting message last night. I was at 11 like you, then got a letter back in April or so saying they were going to jack it up to 17 (which I was mad about but kept it anyways), now this. Also, I think the rate (if it's the same as the one I got) will be anywhere from 29.99 to 32.99. 29.99 is the minimum. There's no way I was going to accept those terms. I opted out yesterday. I've been wondering if they can jack up the rate on the balance yet or do they have to keep it as is 'til it's paid off now? The account was closed as soon as I opted out. I was mad when I called and let the CSR have it. Of course they didn't budge. I'm sure they get that all the time though. I've had my card with them for 10 years, no late payments (I autopay through their system). Some loyalty, huh? I do realize that they can do whatever they want though. Just got married. Didn't use any cards for our wedding - paid cash or got on payment plans with the vendors, but because of that I had just been paying the minimums lately. I do have high util (6k with a 7k limit), so I'm sure that's what they're basing it on. There's nothing else it could be for me. The CSR said that they're raising their rates for all customers because of "current economic conditions in the financial markets". Whatever. I asked if everyone had their rate raised to 30%. I feel the same as you though. I got into trouble with my CCs a few years ago when I had a lower paying job and too many expenses and threw caution to the wind thinking I would just get caught up when I got a better job. Stupid move looking back at it now, but you live and learn. I've been working on paying them down ever since. I don't use them for anything now except for hotel authorizations and rental cars. My plan is to pay off a big chunk of debt early next year with my tax return and bonus. My wife is in school right now too so we've just been treading water 'til she gets out next year and starts working again in a much better paying job. It's a slow process, but I'm determined to get out from under this CC debt. Good luck to you as you do the same.

Message Edited by bschmidt on 07-18-2009 06:43 PM

Re: Citi Card..cancel or keep?

ocheosa — Sun, 19 Jul 2009 01:41:18 GMT

Wow, sorry to hear about this Is there any reason why you didnt get a Citi Student Loan? The rate would have been fixed. An unsub stafford is at 6.8% fixed. The rates are even better if you qualify for the sub stafford.

Maybe you could try to call them and explain you are using this card for your tuition and see if they can help you out.

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 01:54:56 GMT

I hear you!! Sounds like many are going through this. I did not yell or complain to the customer service person, as they have nothing to do with it. Awhile ago I got a nice lady and she said there is nothing she can do. I called again just 10 mins ago and got a [foreign-sounding] person and hung up and called two more times. None were Americans, so I will deal w/it on Monday and call during regular hours. I will also send an email, but I agree w/you. We will not pay the high rate..no way. Opting out is better anyway. Your rate hopefully will stay pretty low, but who knows, but it will also keep you from spending more. Good luck.

Message Edited by dee on 07-18-2009 06:51 PM

Post edited to remove ethnic reference. Please refrain from such specific references on these boards. - Scamp, Mod.

Message Edited by Scamp on 07-18-2009 06:54 PM

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 01:49:48 GMT

When I first got the card, my rate was 3.99%. Stupid me kept it. And used it! grrrr!!!

Re: Citi Card..cancel or keep?

ocheosa — Sun, 19 Jul 2009 01:58:00 GMT

@Anonymous wrote:
When I first got the card, my rate was 3.99%. Stupid me kept it. And used it! grrrr!!!

Hi Dee,

Was that a intro rate (variable) or a life of loan balance transfer?

Again, it wouldmt hurt to give them a call to explain your situation. If you could pay off this balance prior to the rate jack great (that's what they want anyway).

Good luck!

Re: Citi Card..cancel or keep?

bschmidt — Sun, 19 Jul 2009 02:05:37 GMT

@Anonymous wrote:
When I first got the card, my rate was 3.99%. Stupid me kept it. And used it! grrrr!!!

Pretty sure I had the same terms when I opened my account way back when. I also have a card with US Bank. They have been alot easier to deal with than Citi. Citi has raised my rate arbitrarily many times over the years and I always had to fight with them to get it back down. US Bank raised my rate a few months ago, but it only went from 9.99 to 11.99. I can understand that more because of the current environment than 20 points in less than 4 months. They also increased my limit 2K without me asking last month and in the past have adjusted my rate down as long as I paid more than the minimum and didn't have any late payments of course. Long story short, I won't be doing anymore business with Citi. Also staying away from Chase and Cap One. Heard nightmares about them too. If I get another card once my balances are paid off, it'll be from my Credit Union.

Message Edited by bschmidt on 07-18-2009 07:01 PM

Message Edited by bschmidt on 07-18-2009 07:05 PM

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 02:07:41 GMT

Oh no, that was not fixed, for sure. I just never wanted to get another loan and stayed with what I thought then was a good company!! ha! what a joke that was!!

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 02:10:40 GMT

You are going through what I have been going through. Low rate, and then they kept upping my credit line. Of course w/school, etc., I took it! Just shows how stupid we can all be. I will be opting out tomorrow for sure. We do have a chase and one other citi in my husband's name, but different number. It's a Simplicity Citi, whatever that means. We are just waiting for those rates to hit 30%. who knows, by next year they could go to 50% if we keep them all!! wow, and they could legally do that to all of us!!!

Re: Citi Card..cancel or keep?

bschmidt — Sun, 19 Jul 2009 02:15:25 GMT

@Anonymous wrote:
You are going through what I have been going through. Low rate, and then they kept upping my credit line. Of course w/school, etc., I took it! Just shows how stupid we can all be. I will be opting out tomorrow for sure. We do have a chase and one other citi in my husband's name, but different number. It's a Simplicity Citi, whatever that means. We are just waiting for those rates to hit 30%. who knows, by next year they could go to 50% if we keep them all!! wow, and they could legally do that to all of us!!!

Yup - it's scary for sure right now. The CCCs are getting all their rate increases in before the reform bill goes into effect next year and this activity becomes illegal. It's crazy that they can charge a baseline rate of 30% or more. Most cards default rate isn't even that high. Scary to think of what that'll be now.

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 02:18:31 GMT

Oh that is why..?.Obama tried to help things, but instead it is back firing on all of us NOW! geezzz

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 02:19:22 GMT

Only thing making me happy tonight is that the Rays are winning the baseball game right now!! ha!!

Re: Citi Card..cancel or keep?

bschmidt — Sun, 19 Jul 2009 02:40:34 GMT

The new law prevents them from increasing the rate on existing balances, makes them give 45 days notice instead of 15, and prevents them from raising rates arbitrarily if the bill is paid on time. They cannot, for example, jack it up to the default rate for being one day late anymore. Basically, it prevents the type of actions that Citi is doing right now. I just wonder what the base rates will be once the law takes effect.

Like you, I was pretty upset yesterday, but I'm fine with it now. It's just another reason to put every effort to getting rid of this debt and to never go down this path again. Again, good luck and enjoy the game

Re: Citi Card..cancel or keep?

Anonymous — Sun, 19 Jul 2009 02:44:58 GMT

Yes, I agree. I think this will make ALL of us realize they have us and do not care what happens any more. They got their billions from us and are now crying about all about it. I will no longer take out more cards and I will no longer charge. I will change my life by paying off what I owe and like you, hope I do not go down this road again. The Rays won, so it was the only good thing that happened today! Ha!! Nice chatting. good luck..