Citi refuses to lower my interest rate. What am I doing wrong?

[Anonymous]

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@Closingracer99 wrote:

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

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Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

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Actually they really aren't getting around it.... All cards state they can enforce the penalty APR on you if you have A) one late payment or B) a return payment . They also don't state IF or when they will lower it...

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So have you read the CARD Act or are you just throwing stuff out there? 

[Kenny]

Enough. I will say this: to effectively always have a 0% APR is to pay in full. To worry about cashback on credit cards is to make sure you pay in full as the APR negates any rewards if you don't PIF.

I don't know one person who has actually read the card act. Good luck if you have.

No need to go back and forth. AR the post and keep moving. If you argue back, you're just as wrong - believe that. Thanks!

[Anonymous]

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@lhcole77 wrote:

FWIW not everyone PIF on cards, even 2% back cards. Shyt happens, some charges need to be made and it's nice to know that APRs are as low as possible just in case.

I would think that Citi would let you back in with the good kids, but they can definitely be fickle.

If I were you I'd hit up my other lenders for APR reductions. I do it from time to time and now I have multiple cards in 7-8% range for just in case.

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I agree with you lhcole life does happen and sometimes we have to pay interest. In this situation a low APR would be perfect. This is why I think it's important to have a basic credit card that has a low APR and allows balance transfers.

[Anonymous]

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@Anonymous wrote:

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There isn't one card in Citi's portfolio with a 28% APR. Their maximum is 23.24% when you apply. 

When you PC a card, the terms change from what the old card had to what the new card has... When I PC'd from a TYPref to a Double Cash, I received a late fee waiver.

I do agree that a balance shouldn't be carried on a rewards card, but cows don't fly either. 

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They sure didn't do anything in my case as far as changing the terms. 

[sarge12]

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@Anonymous wrote:

I just talked to Citi a few minutes ago. They absolutely will not lower my 28% APR on my Double Cash card. The card is basically useless to me.... other than SD'ing it for AAoA purposes.

History:

Card aquired as a Diamond Preferred card in 2008 with a 7500 limit and 9.5% interest.

Limit eventually raised to 12,000ish.

2008 - mid 2012, Always paid on time.

June 2012 - Major reduction in pay and hours worked at my job. Missed one and only one payment.

July 2012 - interest rate jacked up to 28%, limit lowered to 7500.

Aug 2012 - June 2016 Paid paid paid on the card.... like clock work. Chipped away at it a little at a time.

2013 - Back to normal at work again. Everything fine, financially.

June 2016 -  card converted to Double Cash

July 2016 - Account paid to almost zero, balance just $10.59 (for my Amazon Prime membership.)

Aug 2016 - limit raised back up to 9500.

Credit score as of today..... 731, 741 and 732 (Actual Fico 8). No derogitory remarks, no collections, no missed payments, 16% total CC utilization, 4 hard inqs, nothing else bad on the report.

Wouldn't you think that after 4 years of being a "good boy" that they would let me come out of the corner and play with the other kids?

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The DC card is one of the few I even know the interest rate on because it is new...13.24%. I PIF every card every month...so they are all 0% to me. I have never even asked for an interest rate decrease. PIF is the only way to go IMO on credit cards.

[galahad15]

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

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Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

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My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

[kdm31091]

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@lhcole77 wrote:

FWIW not everyone PIF on cards, even 2% back cards. Shyt happens, some charges need to be made and it's nice to know that APRs are as low as possible just in case.

I would think that Citi would let you back in with the good kids, but they can definitely be fickle.

If I were you I'd hit up my other lenders for APR reductions. I do it from time to time and now I have multiple cards in 7-8% range for just in case.

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Yes but the point is more that every card you have does not have to be ideal for balance carrying. One or two low APR cards for emergencies? Sure, makes sense.

Trying to get a 28% interest rate down to anything even slightly useful for balance carrying is going to be the most uphill of uphill battles. Even if Citi reduces it, it's unlikely it will be a useful balance carrying APR.

I understand things happen and people need to carry balances, but as long as you have other cards, you don't have to worry about getting an APR reduction on all of them, especially the ones that are sky high. It's going to take forever or be impossible to get a reasonable rate on it so don't waste your time.

I love APR reductions as much as anyone else, but if the rate is ridiculous/unlikely to be appreciably lowered, just PIF and forget about it.

[SunriseEarth]

I was able to get my APR lowered today by 2%.   I've been asking for about a year on this card.   I asked every time I had a chance.   So persistence might be key.

And yes, definitely don't revolve anything on this card.   It's better to have another card with a lower APR if you have an emergency.   At that point, rewards probably won't matter.  

[Anonymous]

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@galahad15 wrote:

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

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Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

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My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

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There's definitely certain areas of the CARD Act everyone should know. Obviously I don't expect everyone to read the entire million page report, but to know a few basics could save you stress and money. 

Yes the CARD Act requires Citi to return the OP's APR back to the original after six on-time monthly payments.

[Closingracer99]

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@galahad15 wrote:

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@Anonymous wrote:

---

@kdm31091 wrote:

Unfortunately sometimes when your penalty APR gets applied, the account gets "stuck" and despite the passage of time the APR will not be lowered.

Since the point of the card is the 2% rewards and not financing purchases, just use it for the rewards and resign yourself to not pay interest. I know the 28% APR feels like an insult, but you can beat Citi at their game by just never paying them the interest. Even if the rate were 9.5% it would not make sense to regularly revolve a balance because it wipes out any gains you get.

If it really bothers you, you can close it -- you mentioned SD'ing for AAOA purposes -- keep in mind the account remains on your report for 10 years after closure so your AAOA won't be impacted either way for quite a long time.

---

Not sure why Citi thinks they can get around the CARD Act. 

Penalty APR's should only be applied for a maximum six months if you're 60 days or more late. 

---

My thoughts exactly as well, doesn't CARD Act require Citi to return the original poster to his earlier lower rate, after a certain amount of time has elapsed with him paying as agreed?

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Yes but they could very well just "lower" it back to its "normal" rate and increase it to X.XX%. It is a variable rate and could just decide to increase it.