Close cc can't afford monthly payment!

JoeWash82 · ‎08-08-2023

I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.

AndySoCal · ‎08-08-2023

@JoeWash82 If it will help you keep the acount current take it. It will be closed account with a balance

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RSX · ‎08-08-2023

they will be dropping your payment amount in half - but you will still need to fully pay it off

they will not allow more purchases on the card, as it will be closed fully once you pay it all the way down

your choice on this - you will take a big hit if you let it go to collections

so hopefully you can make the smaller payments and just take the time to pay it down

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Brian_Earl_Spilner · ‎08-08-2023

The account will be closed and show as closed on your reports, but the limit will still factor into your utilization. As long as you don't miss a payment, it continues to report like normal. You also will not be able to apply for another Citi card while on the program.

ptatohed · ‎08-08-2023

If you need the payment to be cut in half, then you may consider their offer. If you have not yet, do request a rate reduction. Don't be afraid to negotiate. Here are some links to citi's Hardship program.

https://www1.citibank.com.au/help-and-support/financial-hardship

https://www.needhelppayingbills.com/html/citi_credit_card_hardship_prog.html

[Until I can make a pretty signature, here’s an updated draft]

Everyday 5% CB:
Chase prime Visa // citi CUSTOM CASH “A” // citi CUSTOM CASH “B” // citi SHOP YOUR WAY (5% gas (in points), lucrative spending offers) // mylowe’s Rewards // Target circle card // primis Perks debit Visa (50c CB per transaction (5% CB or more up to $10 spend))

5% CB rotating:
Chase “OG” freedom Visa // DISCOVER it Cash Back // nusenda CU Platinum Cash Rewards

Everyday 4% CB:
US Bank Smartly (v1.0)

Everyday 3% / 2.2% CB:
AOD FCU Visa Signature (3%, sockdrawered) // upgrade Cash Rewards Elite (2.2%, sockdrawered)

Welcome Offer / credits only:
Chase SAPPHIRE PREFFERED (grabbed my $1,000, sockdrawered, will cancel) // NFCU FLAGSHIP REWARDS (elevated Welcome Offer, annual prime credit, sockdrawered)

Hotel card:
Chase IHG ONE REWARDS PREMIER (elevated Welcome Offer, 1 free night/yr)

On my radar:
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stonedog23 · ‎08-09-2023

@RSX wrote:
they will be dropping your payment amount in half - but you will still need to fully pay it off

they will not allow more purchases on the card, as it will be closed fully once you pay it all the way down

your choice on this - you will take a big hit if you let it go to collections

so hopefully you can make the smaller payments and just take the time to pay it down

No offense, but you stated everything the OP already knew/knows. No new information.

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SouthJamaica · ‎08-09-2023

@JoeWash82 wrote:

I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.

I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

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willmsbrg · ‎08-09-2023

@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

ptatohed · ‎08-09-2023

@willmsbrg wrote:
@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

Good catch. That's probably my fault. But hopefully the general advice stays the same.

[Until I can make a pretty signature, here’s an updated draft]

Everyday 5% CB:
Chase prime Visa // citi CUSTOM CASH “A” // citi CUSTOM CASH “B” // citi SHOP YOUR WAY (5% gas (in points), lucrative spending offers) // mylowe’s Rewards // Target circle card // primis Perks debit Visa (50c CB per transaction (5% CB or more up to $10 spend))

5% CB rotating:
Chase “OG” freedom Visa // DISCOVER it Cash Back // nusenda CU Platinum Cash Rewards

Everyday 4% CB:
US Bank Smartly (v1.0)

Everyday 3% / 2.2% CB:
AOD FCU Visa Signature (3%, sockdrawered) // upgrade Cash Rewards Elite (2.2%, sockdrawered)

Welcome Offer / credits only:
Chase SAPPHIRE PREFFERED (grabbed my $1,000, sockdrawered, will cancel) // NFCU FLAGSHIP REWARDS (elevated Welcome Offer, annual prime credit, sockdrawered)

Hotel card:
Chase IHG ONE REWARDS PREMIER (elevated Welcome Offer, 1 free night/yr)

On my radar:
Langely FCU Signature Cash Back (5% CB monthly selectable cat) // Safe CU Cash Back+ (Quarterly rotating 5% CB cats plus bonus cats) // upgrade MyFive Cash Rewards (5% CB monthly selectable cat) // US Bank Kroger (and family) World Elite Master Card(s) (5% CB Mobile Wallet)

SouthJamaica · ‎08-10-2023

@willmsbrg wrote:
@SouthJamaica wrote:
@JoeWash82 wrote:
I have a citicard been going through a rough patch, can't afford monthly payment. Citi offered to cut payment in half but close the card. How does the affect my credit? Do you all have any other suggestions.
I don't pretend to know the answer to your question, but I have a hunch it will reflect negatively... i.e. that Citi will put something in your report about it that's derogatory.

Read the section "Whilst I receive financial assistance, how will my repayment history be reported to the credit bureaus?"
https://www1.citibank.com.au/help-and-support/financial-hardship

Not sure where the original poster is from but, that weblink is for Citi customers based in Australia... it has a .au attached to the webpage...

Thanks for pointing that out. I'm going to delete that section from my original response. Sorry @JoeWash82

Total revolving limits 568220 (504020 reporting) FICO 8: EQ 689 TU 691 EX 682