Discussion in 'Credit Talk' started by tom65432, Sep 29, 2001.

  1. tom65432

    tom65432 Well-Known Member

    A while back Citi raised my interest rate to 23.99% because my balance got high and they assumed I was in trouble. I had a perfect payment history and wa always on time. Yesterday I got my bill and it said effective next month, they are lowering my APR to their standard rate based on my excellent payment history. Why did they raise in in the first place? I had an excellent payment history then also.

    Does anyone know what their standard rate is?
  2. sam

    sam Well-Known Member

    You need to call up and see if you can get customer service or Retention to lower the rate. Citibank has no real "standard rate". They will give a little on their posted rates.

    My platinum select citi card is currently prime+0.9%, i've had it for 10 months now. I called several times to negotiate that rate.

    What they probably mean is that (prime+factor) that you had agreed to originally, is coming back. However , take action, call them up, and get a better deal. The most they can say is no.

    GEORGE Well-Known Member

    If you don't need the card, DUMP the card if they won't give you PRIME +0.9% or 9.99%...EVEN 13.99% IS BETTER THAN WHAT YOU HAVE!!!
  4. breeze

    breeze Well-Known Member

    OH, well I always thought they wanted us to use the card. Guess not. Hmmmmm. Wierd - I think I'll move some of my Citi balance.
  5. Bill B

    Bill B Well-Known Member

    Can't we close these accounts ank keep the intrest were it was before they raised it? Mine is at 8.40 % with a 13k balance..If they got me at 20%+ i would be dead in they water..
  6. sam

    sam Well-Known Member

    A while back Citi raised my interest rate to 23.99% because my balance got high and they assumed I was in trouble.

    ^^ There's more to this i'm guessing.. I've had my balance to 99.9999% (like $2 under the limit), once.

    Are you sure other factors, perhaps from your credit reports when they pulled the quarterly inquiry did not affect your APR? Like a massive drop in fico or new derog may have popped up to affect your score?
  7. creditwork

    creditwork Well-Known Member

    I have to agree. There has to be more to this than just getting close to the limit. I always borrow close to the limit, is part of my strategy of showing I can handle a higher limit. It has worked for me. My current limit is $10,000, my latest bal. is $9,200, my int. is 7.9% APR.
  8. brad

    brad Well-Known Member

    I think that part of the factor in looking at your balance is how the debt was incurred? I carry a large balance with Citi,but it's almost all from BT'S?
  9. rubyjean

    rubyjean Well-Known Member

    Sam is correct.. Even though you have a great payment history with Citi Bank, There are certain factors of risk that Financial institutions look at when they look at a recent credit report review ext.. Factors could be how many new accounts, and how high are the balances on them since you opened your account with Citi- Bank.. ...Are you making more than the minimum payments..?... How much of your available Revolving debt are you using?? How much disposable income do you have left each month?? recent Delinquency?? These are only some of the factors.. Credit Card Copanies will sometimes call to find our what is going on.. Or they will just increase your Interest rate.. They are required by Federal Law to send you a letter stating so.... and giving you the opportunity to accept the new terms and keep your account open.. or if you do not want to abide by them , you can close your account.. But you will still have to pay the balance with the new interest rate.. Best option is to find a Company with a lower interest rate..
  10. Mist

    Mist Well-Known Member

    The best strategy is to ALWAYS have room to maneuver. I now have 5 accounts, two with zero balances but with 16,000 unused cl. If any of my other 3 accounts tries to screw with me I would immediately transfer it off. I'd keep the line of credit open and start writing letters immediately to have the rate relowered.

    If you have no leverage with unused credit elsewhere you would be in a pickle and have to pay the interest. Don't give up, though. Write letters and protest. Look at your credit reports to see if the company raising your rates has ever reported erroneously. If they have, you've got them - worked for me once. Also, dig up your original agreement with that company (I always keep these). Sometimes they do this when in fact it was not disclosed and that is against the law. You have to be notified of changes and sometimes they do that with an insert in your monthly bill. Most people think it's junk mail and never see it so always check all the inserts included with your statements.

    I would NOT close the credit line, however, because you would then worsen your ratios and be setting yourself up for any of your other creditors to do the same thing to you.
  11. Katco

    Katco Well-Known Member

    GM Household Bank CC did the same to me. They can raise your APR. if there is any negative items on your report. We've agreed to let them do this by accepting the card.

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