topic Re: Citi diamond preferred card APR 21.99% , Why ?????? in Credit Cards

Cit diamond preferred card APR 21.99% , Why ??????

ShiningDown — Thu, 01 Dec 2011 16:16:54 GMT

I just applied for citi card and I was told after 21 months of 0% my APR will be 21.99%. My credit report is clean and I applied with 61% utilization. Is this normal 21.99% for someone with 61% utilization. Also I was denied an increase for my balance transfer.

Re: Citi diamond preferred card APR 21.99% , Why ??????

Anonymous — Thu, 01 Dec 2011 15:59:46 GMT

cats63, I hate to be a broken record here, but I don't fully understand your question, again.

You are looking to lower the rate on the Citi card you have not yet received, that same card that you will pay 0% on for 21 months? You want a CL increase on that card? You are upset that they will not allow a balance transfer to that new card in the amount that you feel you need now, to lower the 11.99 interest on the Chase account? Is this correct?

In a previous post, you asked about Citi balance transfers. If your son has Citi BT capabilities on his new card, he can write a check off of his account to pay some of that debt he incurred on your Chase card.

In the meantime, with a 61% utilization, IMO don't rock the boat. Not trying to be mean here, it's not meant that way. But the way Citi lenders may look at it, it's like "she can't pay down what she's got now, and she wants us to bail her out? No way!"

Do what you can, with your son's help, too, to lower that Chase amount at the 11.99%. Keep on top of it, and in 21 months when the Citi 0% promo rate expires, you won't have to worry at all about the interest rate, because you'll have not only cleared all debt (Chase and Citi), but you'll be PIF, every month!

Keep a good thought. It takes time and patience. I have confidence in you, you'll do it, for sure!

Uborrow-Upay

Edit to answer the questions (stupid me). The APR is high, but so is your reported utilization. And yes, your utilization may be a big factor in that rate. They may (may) lower that rate in the future, but I wouldn't bank on it.

Re: Citi diamond preferred card APR 21.99% , Why ??????

CreditAble — Thu, 01 Dec 2011 15:55:59 GMT

@Anonymous wrote:
cats63, I hate to be a broken record here, but I don't fully understand your question, again.

You are looking to lower the rate on the Citi card you have not yet received, that same card that you will pay 0% on for 21 months? You are upset that they will not allow a balance transfer to that new card in the amount that you feel you need now, to lower the 11.99 interest on the Chase account? Is this correct?

In a previous post, you asked about Citi balance transfers. If your son has Citi BT capabilities on his new card, he can write a check off of his account to pay some of that debt he incurred on your Chase card.

In the meantime, with a 61% utilization, IMO don't rock the boat. Not trying to be mean here, it's not meant that way. But the way Citi lenders may look at it, it's like "she can't pay down what she's got now, and she wants us to bail her out? No way!"

Do what you can, with your son's help, too, to lower that Chase amount at the 11.99%. Keep on top of it, and in 21 months when the Citi 0% promo rate expires, you won't have to worry at all about the interest rate, because you'll have not only cleared all debt (Chase and Citi), but you'll be PIF, every month!

Keep a good thought. It takes time and patience. I have confidence in you, you'll do it, for sure!

Uborrow-Upay

Excellent Advice !

Re: Citi diamond preferred card APR 21.99% , Why ??????

ShiningDown — Thu, 01 Dec 2011 15:58:44 GMT

Citi gave me 1500 limit. I wanted them to give me a limit increase and they said no. I was wondering if this apr rate was fair for me compared to other people? Whats funny is I cant understand what I write either , but thanks for trying anyway!

Re: Citi diamond preferred card APR 21.99% , Why ??????

Anonymous — Thu, 01 Dec 2011 16:01:17 GMT

See my edited post, above...

Sometimes, I don't write everything I mean to say either...

Love ya, cats63!

Re: Citi diamond preferred card APR 21.99% , Why ??????

CreditAble — Thu, 01 Dec 2011 17:35:03 GMT

@Anonymous wrote:
Edit to answer the questions.

The APR is high, but so is your reported utilization.
And yes, your utilization may be a big factor in that rate.
They may (may) lower that rate in the future, but I wouldn't bank on it.

I further agree with your update (edit). I would like to add my 2 cents.

Because of the new consumer "protections" enacted by congress, the "go to" rates have to be somewhat higher since the banks can't raise "permanent" rates on existing balances. Once a card is paid in full, I believe that it might be possible to have the "permanent" rate lowered. Of course as you have said, "I wouldn't bank on it."

Re: Cit diamond preferred card APR 21.99% , Why ??????

birjest — Fri, 09 Dec 2011 16:05:59 GMT

I just apped for this card and my apr will be at 21.99. However, i have no intents of carrying a balance past 4 -6 months. If I can't pay it in that time frame, I won't charge it. Unless it is fr an emergency in the family, I won't put any big ticket item on it.

Re: Cit diamond preferred card APR 21.99% , Why ??????

Anonymous — Fri, 09 Dec 2011 17:27:22 GMT

Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.

Re: Cit diamond preferred card APR 21.99% , Why ??????

Anonymous — Fri, 09 Dec 2011 22:12:00 GMT

I had gotten one of these cards at 12.99 also got a dividen at 12.99 the diamond has s cl of 1k and the divided has 3.8k

Re: Cit diamond preferred card APR 21.99% , Why ??????

GB44 — Fri, 09 Dec 2011 22:22:28 GMT

@Anonymous wrote:
Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.

I heard that most people don't payoff BT's within the required time and that is when the banks make their money with the higher interest rate.

Has anyone every confirmed this to be true?

Re: Cit diamond preferred card APR 21.99% , Why ??????

clocktick — Fri, 09 Dec 2011 23:41:00 GMT

@GB44 wrote:
@Anonymous wrote:
Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.
I heard that most people don't payoff BT's within the required time and that is when the banks make their money with the higher interest rate.

Has anyone every confirmed this to be true?

I don't know if it's "most people" but I'm sure the banks are hoping it is! I see it as people believe they will pay it off in that time. Some succeed and with others, life happens. The time comes faster than they thought and, perhaps, they lessened their payments over the months thinking they will "catch up" by the time the offer expires. Then it's too late and all of the large fees come back. I'm sure it happens often to people who really intended to have it all paid back. It's bound to happen to some and I'm sure that's what the banks are counting on!

Are they still allowed to charge the full interest on the entire initial balance even if one paid it down significantly? I don't know if the new laws now prevent this.

Re: Cit diamond preferred card APR 21.99% , Why ??????

birjest — Sat, 10 Dec 2011 05:48:58 GMT

@GB44 wrote:
@Anonymous wrote:
Usually cards with really good intro APR offers don't have amazing interest rates because they need to make money somehow. The best APR cards are non-reward, non-intro APR cards.
I heard that most people don't payoff BT's within the required time and that is when the banks make their money with the higher interest rate.

Has anyone every confirmed this to be true?

I bet it does happen. Again, some people may not have the intent, but it goes like HELOC. People would take the HELOC out to pay off all the bills, wipe then clean, but soon afterward, they take vacations, splurge, and now they ran their cards back up. OH, by the way, they now have a HELOC that have to be paid back. BT can be you best friend....or it can be like a student loan, it just keep hanging around