topic Re: Close cc can't afford monthly payment! in Credit Cards

Close cc can't afford monthly payment!

JoeWash82 — Tue, 08 Aug 2023 18:32:15 GMT

I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.

Re: Close cc can't afford monthly payment!

AndySoCal — Tue, 08 Aug 2023 18:38:00 GMT

@JoeWash82 If it will help you keep the acount current take it. It will be closed account with a balance

Re: Close cc can't afford monthly payment!

RSX — Tue, 08 Aug 2023 19:11:10 GMT

they will be dropping your payment amount in half - but you will still need to fully pay it off

they will not allow more purchases on the card, as it will be closed fully once you pay it all the way down

your choice on this - you will take a big hit if you let it go to collections

so hopefully you can make the smaller payments and just take the time to pay it down

Re: Close cc can't afford monthly payment!

Brian_Earl_Spilner — Tue, 08 Aug 2023 19:40:28 GMT

The account will be closed and show as closed on your reports, but the limit will still factor into your utilization. As long as you don't miss a payment, it continues to report like normal. You also will not be able to apply for another Citi card while on the program.

Re: Close cc can't afford monthly payment!

ptatohed — Tue, 08 Aug 2023 20:08:35 GMT

If you need the payment to be cut in half, then you may consider their offer. If you have not yet, do request a rate reduction. Don't be afraid to negotiate. Here are some links to citi's Hardship program.

https://www1.citibank.com.au/help-and-support/financial-hardship

https://www.needhelppayingbills.com/html/citi_credit_card_hardship_prog.html

Re: Close cc can't afford monthly payment!

stonedog23 — Wed, 09 Aug 2023 11:53:14 GMT

@RSX wrote:
they will be dropping your payment amount in half - but you will still need to fully pay it off

they will not allow more purchases on the card, as it will be closed fully once you pay it all the way down

your choice on this - you will take a big hit if you let it go to collections

so hopefully you can make the smaller payments and just take the time to pay it down

No offense, but you stated everything the OP already knew/knows. No new information.

Re: Close cc can't afford monthly payment!

SouthJamaica — Thu, 10 Aug 2023 15:32:06 GMT

@JoeWash82 wrote:

I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.

I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Re: Close cc can't afford monthly payment!

willmsbrg — Wed, 09 Aug 2023 18:25:11 GMT

@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

Re: Close cc can't afford monthly payment!

ptatohed — Wed, 09 Aug 2023 20:19:23 GMT

@willmsbrg wrote:
@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

Good catch. That's probably my fault. But hopefully the general advice stays the same.

Re: Close cc can't afford monthly payment!

SouthJamaica — Thu, 10 Aug 2023 14:12:04 GMT

@willmsbrg wrote:
@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

Thanks for pointing that out. I'm going to delete that section from my original response. Sorry @JoeWash82

Re: Close cc can't afford monthly payment!

SouthJamaica — Thu, 10 Aug 2023 14:16:56 GMT

@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

@JoeWash82 please disregard the URL I cited in my original response, it was from Citi's Australian website... I would edit my original post but the forum is not providing me with the "Edit Reply" option