Citibank Confusing Me

[T. Lynn]

Apparently their rates are going up and you have to opt out if you don't want the new change to take affect. I've had them since high school and I only have 2 credit cards currently open.

I was trying to find out what my new payment would be based on an $8,000 balance. I've gotten two different stories/numbers and I'm so confused.

I'd hate to accept the terms because that is an outrageous percentage (24.99 - lowest they have available), but closing it will also affect my credit score (debt to income tremendously). I was hoping to maybe keep it open and pay it down with my new part-time job.

Does anyone know what my new payment should roughly be?

 

[james'mommy]

It depends on how citi figures their payments. A cc company must have a min payment that is 1% of your balances plus the interest and any fees that you were charged during the statement cycle. Som banks choose to have the % of balance amount higher than 1%.

 

[T. Lynn]

Ok, just got off the phone with them. My current rate is 9.99 but new rates are going to be 24.99 and that is the lowest APR they have right now.

Holy cow...I opted out and unfortunately will have to close my account. I'm sure this is really going to affect my FICO score and I'm sitting here so upset & crying.

 

[JoyG]

When does the new rate take effect?

 

[erin.w]

Can you just transfer the balance to another card and just keep the account open with no balance?

 

[lilrooster]

Where did you guys see, hear, or read this? I have them as well and would be interested in finding out whats going on

 

[T. Lynn]

They said a letter went out but I don't remember seeing it in the mail. Here is a thing to calculate payments. I've been on the phone with them for over an hour just making sure I heard right, new rate would be 24.99. That's more than double for me!!!

http://www.citibank.com/uae/gcb/ccards/mpd_calc.htm

Unfortunately I can't transfer the balance over. I have only one other card open that I keep for emergencies. Guess I'll just bite the bullet and say "oh well". I'm sure I won't be the only one going thru this. It will probably only be getting worse.

 

[lilrooster]

OK I just called them because you guys had me freaking out...they told me that I have no changes showing and that my rate was staying at 10.99%

 

[T. Lynn]

That's weird because I was told it was on all accounts...and I spoke with 3 different people.

 

[firsttimer2007]

http://credit.about.com/od/consumercreditlaws/a/creditbillright.htm

I think laws were past and the credit card companies are trying to slide in some fees before they take effect.

http://www.homebuyinginstitute.com/help/2008/12/credit-card-laws-and-consumer.html

 

[pixie921]

Everything I've read says it's happening to all Citi account holders. I got a notice saying that mine was going up, too, but it's actually gone down on my last two statements. I'm still waiting for the new rate to go into effect.

On a side note, I got an interest rate increase from Chase today, too, on my Disney Visa.

Neither card has a balance to be affected, but it's irritating that the credit cards are all raising their rates.

 

[colonialtinker]

OK I just called them because you guys had me freaking out...they told me that I have no changes showing and that my rate was staying at 10.99%

I was told this too when I first heard about the increase, then I got the dreaded letter I opted out and then had DH close his account with them. My cc had an interest rate of 7.99% and DH's was 8.99%. Thankfully DH's card was paid off and mine will be paid off in the next few months.

 

[umaangel00]

Have you been late or overlimit at all? I work for a bank(not citi) that that interest is our deliquency rate. Try applying for another credit card with another company and transfer the balance. I wouldn't put up with that either! I have gotten rid of all of my credit card and now I am just paying them off. DH had 2 cards but we were just notified that one of his cards is being cancelled due to poor credit. Not sure what they are thinking because he doesn't have poor credit. Not even close but oh well. Our plan is to be rid of all credit card debt by the end of the year anyways.

 

[LanaJae]

First, I'm very sorry about your situation!

I looked at our account online and it's 9.24%, but I only use this card about twice a year. We didn't get a letter about a rate increase.

I think they lie to people about "all" accounts and such. I'm not sure how they go about this rotten business, but I imagine it has a lot to do with how close you are to your limit (or how close you stay to your limit each month) and whether you stay pretty close to your minimum payment. They know when they've "got" you and they know if you're eligible for a balance transfer with another credit card company.

Maybe you can go talk to your actual bank and see if there is anything they can do. If you've had your #1 job for awhile and now they see that you have a second job, maybe they can do a loan to pay off the balance and do automatic payment withdrawl with a lower interest rate.

 

[mamalle]

I havent received anything either and mine is 9.99% with my upromise card..

 

[quentina]

I closed mine and got zero% for 1 year to give me time to pay off.

I am at a point in life that I want zero credit cards...so, I can live with it being closed.

As far as credit score, I think it goes down initially then cruises back up.

Since we have a home and new cars, I am just not concerned right now.

 

[colonialtinker]

I havent received anything either and mine is 9.99% with my upromise card..

DH received a letter from Upromise stating that they were changing his card to Bank of America. He received that letter last week and it said the changes would take effect in March. The rate with the new card is also increasing to 10.99%.

DH and I have very good credit. When I received the notice from Citi they gave me all kinds of excuses. I opened that account in 1996 when our son went off to college, once he finished college I took him off the account and added DD while she was attending college. My card has always been paid on time and I always pay more then the minimum. I keep low balances and hardly use Citi, there was no reason to up my rate. I think Citi is trying to get some of the money they lost in the housing market from their loyal card holders.

 

[SpaceGirl]

If you only have two Credit Cards apply for a new card today (now) before any changes show up on your credit report. Try for a new card that you can transfer the $8,000.00, with luck the new card may have a 0% offer that would help.

 

[middleofamerica]

I also got this letter from Citi, but they put ours up to 17.9. I just had to chime in on how much I can't stand Citi card and I can't wait to pay it off and be done with them! This is the second time they have jumped my rate sky high, last time was higher. You would have thought we would have learned our lesson last time, but we had a good offer and went back to them. They're the worst credit card we've ever dealt with. I can't wait to pay them off and never look back! I second the idea to try to just transfer your balance to another card if you can't pay it off right away. Good luck!

 

[T. Lynn]

I would love to do that but I only work PT. I was in Real Estate and that speaks for itself.

I've had a really tough 6 months (due to things increasing, no sales & high real estate fees to pay). In my 13 years of owning a home, it was the first time I was late but I got back on track this month. I was also late on auto payment within those 6 months...credit cards were on time due to fees they tack on. I'm sure that will hinder me getting another card.

Guess I will not bother with it. Since I decided to opt out, my rate will be 9.24 until paid off. This new part-time job has helped me get things caught back up and will allow me to put my checks towards my other card so I can still have it for emergencies and then paying down the one with Citibank.

I'm just so frustrated because since I was 18, I maintained EXCELLENT credit and had a good score. Within the past 6 months, I'm sure seeing my FICO score will make me cry. My marriage being on the rocks didn't help either. I put things on the back burner as well, due to depression. One day I finally came to my senses and said that I can't let a man (or the one hurting me) affect other things in my life. I went out and got a "paying" job to help correct the things I let get destroyed...along with my self esteem. 2008 was the worse year of my life, even lost my dog after the holidays so I was just an emotional wreck and want to be whole again. I just feel like everything I worked so hard for was ruined in 6 months. It was my fault because I let things get in the way but it still hurts. 15 years of good/excellent credit to be ruined by a 6 month mistake.

Thanks for listening! Sorry to vent...