Citi increased APR

[alkaline]

My December Citi Double Cash statement showed a new purchase APR... 14.24%, a 1% increase! 

Live chat told me that "due to federal guidelines the government raised the prime interest from 3.25 to 3.50... This would be the cause of this."

And so it begins 

[Anonymous]

They raised you a whole 1%?  Not just .25%?  Darn Citi!

[alkaline]

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@Anonymous wrote:

They raised you a whole 1%?  Not just .25%?  Darn Citi!

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Actually, you're right.. I was at 13.99%.. For some reason I thought I was at 13.24% with them 

[Anonymous]

Citi raised my APR 1% from 13.99 to 14.99. Although I'm at 99% utilization on this card lol.  The funny thing is that I don't remember seeing a notice, I just checked online and it wasn't that high last statement. 

My Chase hasn't changed, though, remaining at 13.49%, but I'm not maxed. 

That's why I went ahead and applied for that lending club loan because if they're bumping it that much per quarter percent Fed hike, what will it be like in a year if the Fed continues bumping rates?

[Anonymous]

I think Fed is expected to bump at least 1% for the next year. Oh well.. I hope these 1% BT offers will still be around.

[Imperfectfuture]

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@Anonymous wrote:
I think Fed is expected to bump at least 1% for the next year. Oh well.. I hope these 1% BT offers will still be around.

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Um, according to financial news, probably not.

[NRB525]

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@Imperfectfuture wrote:

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@Anonymous wrote:
I think Fed is expected to bump at least 1% for the next year. Oh well.. I hope these 1% BT offers will still be around.

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Um, according to financial news, probably not.

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if they want to bring the global economy to it's knees, they will raise by 1% over the next year. There is a gajillion U.S. dollar denominated new debt out there around the world expecting to stay at low rates. Particularly in emerging markets.

[Anonymous]

Who knows what the Fed is going to do.  We're kind of in uncharted territory in regards to the length and breadth of the extremely low rates. 

I think one of the main reasons they want to raise rates now is to regain same quantitative tools that "helped" us out of the last Great Recession.  In other words, if rates are effectively zero, the Fed doesn't have much in its Arsenal should another recession come and come it will. 

By moving rates up, this allows them to reload that capability, a tool they have used with great effect ever since it was created. Not raising rates kind of negates that ability as there's nothing to lower. 

Although ironically, by them raising rates might force that very recession.  But that recession will happen, it's just a matter of how big and how long. However, hopefully it won't be enough to force those rates back and they can slowly reload should a big one hit. 

[UncleB]

My Amex BCP statement dropped yesterday, and I just checked it out online a few minutes ago. 

I'm currently on a new account promo, but my 'non-promo' rate has increased 0.25% as well, so like Citi, Amex also didn't waste any time making the adjustment.

[Anonymous]

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@UncleB wrote:

My Amex BCP statement dropped yesterday, and I just checked it out online a few minutes ago. 

I'm currently on a new account promo, but my 'non-promo' rate has increased 0.25% as well, so like Citi, Amex also didn't waste any time making the adjustment.

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I suspect that on all variable rate cards the new interest rate will appear on statement cut.   The T&Cs usually reference something like the prime rate as published in the WS&J at a certain day (e.g. Amex "Variable APRs for each billing period are based on the Prime Rate published in The Wall Street Journal2 days before the Closing Date of the billing period.")   So depending when your statement closed relative to the rate increase, you will see it either in the first or second statement after the rate hike.