Citi APR increase

[tianapb725]

Citi just raised my interest again for no reason.  About a year ago it went from 12.99 up to 19.99%.  I called and they reduced it to 13.49%.  Now it's back up to 17.49%.  I've always paid on time and have a good credit history.  They're my oldest card (6 years) and highest limit (13,500), so I'd rather not close the card (I'm 26).

Do you think they'll lower it again?  Why do they keep doing this?

Message Edited by tianapb725 on 02-03-2010 09:52 PM

[Anonymous]

You should have received a letter back in December notifying you that you have the option to decline the new terms. I believe you had until Jan. 5th to opt out. If you elected to opt out, your account would be closed at the end of your membership year or the expiration of your card. Some people recived an increase to 28 or 29 percent. They are doing this because of the new laws.

[MarineVietVet]

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@tianapb725 wrote:

Citi just raised my interest again for no reason.  About a year ago it went from 12.99 up to 19.99%.  I called and they reduced it to 13.49%.  Now it's back up to 17.49%.  I've always paid on time and have a good credit history.  They're my oldest card (5 years) and highest limit (13,500), so I'd rather not close the card (I'm 26).

Do you think they'll lower it again?  Why do they keep doing this?

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Do you think they'll lower it again? Maybe. They did it once for you.

Why do they keep doing this? No one can answer that. At least I can't. My rates were jacked over a year ago from 8% to 25%. So I decided I could play that game. I haven't paid a penny in interest since then so they can raise the rates to whatever they want.

Don't close the card. Do what I did. Get it paid off as fast as possible, use it for a small purchase every few months to keep it active and always pay in full. The interest on $0 will always be 0.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.