6% APR increasing on Citibank credit card

alpac · #1 02-07-2009, 03:46 PM

I received a letter from Citibank letting me know of a 6% APR increase on my MasterCard. 6% that is a big increase! I have had a credit card with them for 7 years, never been late with payment. The reason they gave me was because of the current financial situation. I have 3 other credit cards with 3 other banks and I have not received similar notice from them, at least not yet. Is this the tendency?

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Thunder22 · #2 02-07-2009, 04:18 PM

Just another reason to pay off credit cards in their entirety every month.

If people don't have the money, don't put it on a CC.

I ditched my Citibank AA card 2 years ago in favor of a Capital One no hassle rewards card.

brian5 · #3 02-07-2009, 04:32 PM

Unfortunately, Gresch is right. Need to pay off credit cards every month. The interest rates are really high at the current levels (even without 6% increases).

And Gresch, my primary credit card is still Citibank AA card. I've been to Europe twice with my family on rewards points. There have also been other trips...

realchef · #4 02-07-2009, 04:35 PM

Quote:

Originally Posted by gresch

Just another reason to pay off credit cards in their entirety every month.

If people don't have the money, don't put it on a CC.

I ditched my Citibank AA card 2 years ago in favor of a Capital One no hassle rewards card.

here here!

owe nothing, then it doesn't matter!
1 card only, usbank.

Thunder22 · #5 02-07-2009, 05:19 PM

Quote:

Originally Posted by brian5

Unfortunately, Gresch is right. Need to pay off credit cards every month. The interest rates are really high at the current levels (even without 6% increases).

And Gresch, my primary credit card is still Citibank AA card. I've been to Europe twice with my family on rewards points. There have also been other trips...

take a look at Capitalone, you can use the points on any airline with no restrictions.

Eric5273 · #6 02-07-2009, 06:12 PM

Quote:

Originally Posted by gresch

If people don't have the money, don't put it on a CC.

Easier said than done. Ever been hungry and not had the money to buy food?

Eric5273 · #7 02-07-2009, 06:14 PM

Quote:

Originally Posted by alpac

I received a letter from Citibank letting me know of a 6% APR increase on my MasterCard. 6% that is a big increase! I have had a credit card with them for 7 years, never been late with payment. The reason they gave me was because of the current financial situation. I have 3 other credit cards with 3 other banks and I have not received similar notice from them, at least not yet. Is this the tendency?

I got the same letter. If you call them up, they will give you the option to decline the change in terms. If you decline the change in terms, then you can continue to use your card under the old terms until it expires, at which point they will close your account. If you have a balance on your account when they close it, you can continue to pay off that balance under the old terms/lower interest rate.

realchef · #8 02-07-2009, 06:37 PM

Quote:

Originally Posted by Eric5273

Easier said than done. Ever been hungry and not had the money to buy food?

yup, worked up to three jobs, struggled and have an much improved balance sheet. Got in deep, set a 5 year plan and finished it in 3.

I don't know you Eric. You may be speaking personally or in general. Here's what has come my way, the hard way.

Cleaning finances up is not an easy or overnight thing.

a. define your situation, accurately. Get down to parking meter fees. NO B.S.

b. careful planning, budgeting and adhering to them is the only way. List your monthly obligations and their due dates. Do not miss or pay late. Missing payments currently echoes into your entire financial situation. They will raise your rates even if you are late paying a completely different Co. Even your insurance rate reflects your credit score.

c. sell everything you can stand, even the car. The rates on CC debt just murders the secured loans. You are better off unloading high dollar items, paying the revolving debt off, then repurchasing. Don't let your ego skew reality.

d. look at your income. Maximize your skills in the workplace. Read 'The Pathfinder' and ensure you are both happy at work and getting paid appropriately.

e. it feels so good just to start catching up. Starting to get ahead is energizing. Your(one's) liberation will be the most fantastic feeling!!

It's been years for me since a CC balance has carried over to the next month. It's worth the sacrifice to break the cycle. Learn new habits. Life is beautiful not being under Citibank's thumb.

blondboinsd · #9 02-07-2009, 07:37 PM

Quote:

Originally Posted by alpac

I received a letter from Citibank letting me know of a 6% APR increase on my MasterCard. 6% that is a big increase! I have had a credit card with them for 7 years, never been late with payment. The reason they gave me was because of the current financial situation. I have 3 other credit cards with 3 other banks and I have not received similar notice from them, at least not yet. Is this the tendency?

That is odd. I have a Citi (Premier Pass Elite Level World Card, How is that for a name?) Perhaps it's just certain cards? I agree on the above CC's should be paid off in full each month and contrary to popular belief from the last decade they don't count as extra income.

alpac · #10 02-07-2009, 08:11 PM

Quote:

Originally Posted by gresch

Just another reason to pay off credit cards in their entirety every month.

If people don't have the money, don't put it on a CC.

I ditched my Citibank AA card 2 years ago in favor of a Capital One no hassle rewards card.

Right and I agree, I have a $200 or so balance on it so that is not the issue. I just cannot believe they tried that now. I would have expected something like that at the expiration date not 2 month after renewal!! I told them no way of course and sent a check in the mail to clear my balance and will call them next week to terminate my account with them. It is a card that works with American Airline that I only use from time to time so no big deal.

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