i dont know what to do about my credit card...

[theceo13]

i got a letter today from Citibank telling me my APR will be increasing in january from 19.9% to 23.9%. In the letter it says i have the option to opt out of this increase, but if i do i can use my card under the current terms until the end of my current membership year or my card expiration, whichever is later. Well my card doesn't expire until 12/31/2011 so ive still got about 2 yrs. This is my only card and i have about 1700 charged on it, which is about half my limit. Should i opt of the APR increase and just pay it off and let it close in 2011 or just agree to the new terms?

 

[clh2]

I think it depends...I think if you opt out of an increase - you can not continue to use the card - only pay it off.

 

[comicguy]

That's a tough question. A couple of things to consider?

1) how long have you had the card?

2) Can you payoff the amount and then only charge what you can afford to payoff each month afterward?

3) Do you have other CC's with better terms?

4) Do you care about this card/company at all? (loyalty?)

citibank did that with my card as well. But it is my oldest so I am going to keep it and accept the new terms and also has the greatest account limit.

 

[PinkJade]

I would pay it off and close the card. In fact I just did that, they are raising mine to 29.99%. I hardly even use the thing!

 

[eliza61]

i got a letter today from Citibank telling me my APR will be increasing in january from 19.9% to 23.9%. In the letter it says i have the option to opt out of this increase, but if i do i can use my card under the current terms until the end of my current membership year or my card expiration, whichever is later. Well my card doesn't expire until 12/31/2011 so ive still got about 2 yrs. This is my only card and i have about 1700 charged on it, which is about half my limit. Should i opt of the APR increase and just pay it off and let it close in 2011 or just agree to the new terms?

Can you search around for another card with better rates? Try a credit union. I think nowadays most people need a credit card to make reservations and such.
How's your will power? Can you try to really pay down the balance as much as possible, then leave the card open for emergencies and travel?

 

[theceo13]

well im pretty young, 21 to be exact, so ive had the card since i was about 19, and right now my credit is in great shape so i dont want to do anything that will affect it in a bad way. Im ok with not being able to use the card any more, seeing as how ive started to just leave my card at home until i could get it to a zero balance again, infact i had a plan to pay the balance off within 6 months. I haven't really searched around for a card with a lower APR because i was going to wait until the new credit card law goes into affect. Should i maybe just accept the new terms and just try to pay the balance off asap, and then close the card when i find a new one with a lower apr? oh, and thanks to everyone who is giving me their input

 

[eliza61]

well im pretty young, 21 to be exact, so ive had the card since i was about 19, and right now my credit is in great shape so i dont want to do anything that will affect it in a bad way. Im ok with not being able to use the card any more, seeing as how ive started to just leave my card at home until i could get it to a zero balance again, infact i had a plan to pay the balance off within 6 months. I haven't really searched around for a card with a lower APR because i was going to wait until the new credit card law goes into affect. Should i maybe just accept the new terms and just try to pay the balance off asap, and then close the card when i find a new one with a lower apr? oh, and thanks to everyone who is giving me their input

That sounds like a game plan. Congratulations on thinking about your finances!! Say do you have a boyfriend, I have a 20 yo son who needs some serious help understanding good credit card habits. I need to introduce him to smart gal.

 

[theceo13]

lol, im flattered but im a guy myself

 

[Minniemama350]

Opt out, close the card, but know that getting a better rate will be hard. I am much older than you and I have excellent credit,but I can't get a good rate right now. A year ago I had 4.9% fixed rate. The only thing that happened to change this was the economy. I can't find a fixed rate card now and I refuse to have an APR above 15%. We simply aren't using our cards now. If you really need the card for emergencies, then pay it off and put it where it is not so easy to use it. Credit is not a good financial decision right now unless you have absolutely no choice. Just my opinion, I know a great deal of things in life can happen that make it not so easy.

 

[jessica29]

They just raised citbank mine from 9% t 14% I did not see anything to opt out. How did you know you could do that? I don't care about loyalty the way I see it I am a good customer and there are plenty others that would be happy to take our business.

Don't close your card it drops your credit score! I know it sounds stupid. reasearch it. Just keep it with 0 bal

 

[theceo13]

i got a letter from them and it said in the letter i had till 1/4/10 to opt out

 

[dreamin_disney]

lol, im flattered but im a guy myself

LOL! Imagine that blind date-lol! surprise!