The answer to Citi's rate jack.

[y0rascal]

I have seen multiple threads about Citi's rate jacking process and just been busy and haven't been able to reply to most threads.

I don't have the overall answer but this is what worked for me.

I received a letter from Citi that due to the economy they were raising my interest rate from 11.24% to 18.99%. I had then contacted Citi multiple times and even used back door numbers, even threaten to close my account and got the "there is nothing we can do either accept it or opt out". I accepted the increase and I had a balance of over 6k with a 9.6k limit.

I went ahead and opened another account with another bank and balance transferred my full balance from Citi, sure it cost me a balance transfer fee but I did get 0% and not getting hit with the 18%.

Once the balance transfer was completed and had a zero dollar balance, I contacted Citi and requested my interest rate to go back down, and what do you know, they lowered it to 12.24%. Yes its not the old 11.24 but it was lowered.

So for those out there getting hit, don't opt out, just move your money somewhere else. Once it reports on the account ask to lower the rates, just don't be too upset when they do.  

It worked for me and I am sure it will work for others, but can't gaurntee it will work for everyone. And now my Citi sits with a 0 dollar balance and barely  any usuage.

Good luck

[DI]

So Citi is increasing rates on those with big balances which makes sense.  They can make more money off members with a high balance.  Another reason to PIF. 

[QueenBean]

Good to know - they jacked mine from 14% to 29.99%!   No lates or issues, so I'll be excercising my "opt out"...... but I've decided to start my own personal blacklist, because they economy will get better, but Citi will be forever pond scum.

[Too_much_debt]

I just did something similar...decided to consolidate existing CC debt with a fixed loan.  If they or any other CC decides to RJ me, they won't be playing with a balance that will earn them any money.

[y0rascal]

i should also include this happened back in early 2009 it was not recent. but excercise this and be amazaed how fast they lower yoour interest rate.

[DI]

I'm still sitting at 0% for the next 6 months.  PIF every month.  Now waiting on CLI's rather than RJ. 

[Anonymous]

That's good to know, and I am very happy for you! But as someone has mentioned, once the economy gets better, Citi will be stuck in their filthy hole because I refuse to do business with scumbags who treat good, loyal, honest person with excellent history like DIRT. Citi and Chase will forever be on my blacklist...

[Anonymous]

I have had problems with Citibank also. I have two cards. One had a credit limit of $8,660. I was close to the limit but paid it off last month. The next statement they had dropped my limit to $500 and are increasing my interest rate to 29.99%. I lost it (as in I was outraged). I closed the account. Unfortunately, I have another card with them and they are raising the APR to 29.99% on that one too. I have had a good payment history with all of my cards. I usually pay more than the minimum. Recently, I paid off the two highest interest cards. My FICO score does not reflect those changes yet.

The thing I find most frustrating is that they criticize you for having too much debt to credit limit. Then when you pay off the card they drop your credit limit so much you lost what you thought you had gained by paying the bill!

How much will it hurt my FICO score if I apply for a new card with lower interest and transfer as much as I can of the balance on the one I have to another bank?