Hello,
I cant seem to get my APR reduced on my Citi DC. Currently my APR is 15.74%. It was the lowest advertised APR when I applied in Sept 2018.
I have asked via live chat once a month for the past 4-5 months. They usually counter and say something along the lines of "your apr is the prime rate + 10.24, which is the lowest APR we offer," or "your APR is on the low end already, currently we only offer the card with a higher APR." In my last encounter, I told the rep I enjoy using my citi card and want to consider carrying a balance in the future, but the APR is higher than my CU. Still no dice.
I did have a spree from sept to jan. Citi being my first app in a few years, quickly followed by uber, fort knox, and a car loan. So I do have 4 accounts <1 year and a bunch of inqs. My scores have mostly rebounded: 746 TU, 714 EQ Bankcard, 726 EX. Am I playing the APR reduction game wrong, or is the newer credit just preventing me from that? Do they soft pull when reviewing APR? I just assumed they wouldn't be looking at my report for a few % on a good standing account.
Thanks 
I can't speak to Citi but rate reduction in general is a dicey game sometimes. It depends on the bank and the credit card agreement. The bottom line is, there is nothing that says they EVER have to reduce your rates (or raise them) after they run your credit to open an account and there is nothing that says they have to EVER lower the rates once they raise them per the agreement.
Cases in point: I have USAA and after many years on more than one card and with my credit scores and report improving dramatically, they won't adjust an APR down on an account after opening - even with a hard pull. Or at least I've never been successful with that. Also, almost 20 years ago, I had Chase raise my APR on one card to the penalty APR for some reason, although I don't recall why. It may have been some slightly late payments or high utilization but I never defaulted or failed to pay with them. Still, even though my scores have all been exceptional (800+) for years, they have approved me for multiple more cards, and I have a total credit line with them of over $138,000, they still refuse to lower that penalty APR!!! (Whenever I ask, they state that they do regular "reviews" every six months on all accounts.) I keep the credit line open due to it's age and I use it and pay it in full, so the APR doesn't really matter. But it kinda bugs me; it's just the principle of the thing.
Oh, and they couldn't care less what your credit union is giving you for a rate. They know they aren't competive with credit unions and they don't try to be. They don't care. It's like going to Macy's and trying to leverage what Wal-Mart or Amazon is charging for something. Lol
I've had other issuers raise or lower the APR on my credit lines as my scores and/or utilization has varied, which seems the reasonable and appropriate thing to do. But really, it's all up to them as to what they do about APRs. All you can do is ask and see what is given. Sometimes, persistance pays off.
No, for the majority of us, what you are being told is true. Only a select few somehow get lower than advertised apr and im going to go out on a limb and say they either use their Citi cards heavy or have a really thick profile or both. Mho of course
@mumbogray wrote:Hello,
I cant seem to get my APR reduced on my Citi DC. Currently my APR is 15.74%. It was the lowest advertised APR when I applied in Sept 2018.
I have asked via live chat once a month for the past 4-5 months. They usually counter and say something along the lines of "your apr is the prime rate + 10.24, which is the lowest APR we offer," or "your APR is on the low end already, currently we only offer the card with a higher APR." In my last encounter, I told the rep I enjoy using my citi card and want to consider carrying a balance in the future, but the APR is higher than my CU. Still no dice.
I did have a spree from sept to jan. Citi being my first app in a few years, quickly followed by uber, fort knox, and a car loan. So I do have 4 accounts <1 year and a bunch of inqs. My scores have mostly rebounded: 746 TU, 714 EQ Bankcard, 726 EX. Am I playing the APR reduction game wrong, or is the newer credit just preventing me from that? Do they soft pull when reviewing APR? I just assumed they wouldn't be looking at my report for a few % on a good standing account.
Thanks
IMHO, 15.74 is actually not a bad rate for CCs in this economy and especially considering yours is less than 12 months of age.
Thanks for the advice everyone! I guess I wont worry about it too much in the near future. Not planning to carry a balance anytime soon, just trying to get a better rate in case that ever changes. I'll start trying again when its >1 year.
Cheers!
@CreditInspired wrote:
@mumbogray wrote:I cant seem to get my APR reduced on my Citi DC. Currently my APR is 15.74%. It was the lowest advertised APR when I applied in Sept 2018.
IMHO, 15.74 is actually not a bad rate for CCs in this economy
@mumbogray, on my previous reply, I focused on the question of lowering APR's and neglected to discuss the APR you were trying to reduce. In the past, I have often used the current advertised APR as a barometer of how "good" my rate was on a card. The current rate on a new Citi DC application is 16.24% to 26.24%! So if you have 15.74%, which was the lowest advertised rate when you applied, then that is the absolute lowest you can expect that account to ever go. The CSRs are probably telling you correctly that they will never be able to lower it further.
Keep in mind that "cash-back" or rewards accounts nearly always charge a higher interest rate than basic non-cash-back credit cards from the same issuer. It's part of how they make up for paying out their rewards. So to compare apples-to-apples, I'll bet that credit union card you are quoting also does not pay cash-back or rewards, or at least not at a 2% rate??
Also, if you want to EVER carry a balance, a cash-back card is the worst possible place to do it because their rates are always going to be higher. Many consumers are misguided when they apply for "cash-back" cards enticed by the "savings" but then they plan to carry a balance. If you EVER plan to carry a balance on a cash-back card, you're wasting your time bothering to carry it. Rolling a balance over even periodically will probably quickly wipe out your savings and then start costing you quite a bit higher in interest than you'd pay on a basic card. Banks are actually counting on people to fall into that trap. Don't do it.
Instead, if you don't always PIF, pick a low-rate APR card with no rewards to get the lowest possible rates. (Nothing wrong with having a cash-back card also, as long as you don't charge anything on it that you don't plan to pay off immediately.) There are plenty of low-apr cards out there for good-to-excellent credit with APR's *UNDER* 10%, sometimes as low as 7%. You won't find any of these with the big banks. They push their low-intro apr cards that default to much higher rates over time. The lowest rates are usually with smaller regional banks and local credit unions, so start there. Here are a few choices, for example. Watch out for lenders who don't have a reputation for long-term low rates; they may advertise a 'teaser' rate and then ratchet your variable APR up artificially (when the prime rate is not changing.)
Garden Savings Credit Union (NJ-affiliation but anyone can join through American Consumer Council) has rates as low as 8.00% on their Visa cards. (*depending on credit score; 8.00% for scores 680+)
Navy Federal Credit Union - if you qualify for membership through military service or even as a family member of a veteran - has a Platinum Visa card with rate as low as 8.24%. Also has current 12-month 0% BT offer.
UFCU - University of Texas Federal Credit Union (University of Texas-related but anyone can apply) "Great Rate" card has rates as low as 8.49%.
PenFed Credit Union (No military affiliation required) has rates as low as 9.24% on their GOLD Visa. Includes $100 SUB (for $1500 spend in 3 months) plus 0% BT for 12 months.
Simmons Bank is long-known for having one of lowest APRs on their Visa card, currently as low as 10.25%. Also has current 12-month 0% BT offer. NAMED BEST LOW INTEREST CREDIT CARD OF 2019 BY CARDRATINGS.COM.
There are plenty of others out there. This is just a sampling from some I have learned about over the years.
Another suggestion for you. If you have cards that often offer temporary 0% BT offers, you'll just pay a 3% to 5% fee for rolling a balance over, effectively a 3% interest rate for 12 months. So use the lowest-apr card you have for the initial charge (to minimize your first month's interest payment) and then immediately do a BT offer to your 0% card to give you time to pay it off. Discover, for example, is one lender that often does this. I've also gotten them from First National Bank of Omaha, Bank or America, and Chase among others.
