Comments on: Citibank Raises Interest Rates A Lot

By: Balance Transfers Helper

Balance Transfers Helper — Wed, 20 Jul 2011 14:55:38 +0000

Jeff,

It sounds like Citi was actually pretty cool about this. Most companies wouldn’t let you switch cards and move balances to a lower rate. It is unfortunate you didn’t pursue balance transfer options when the rates were first raised, as I imagine the 29% rate was put on your card in late 2009 before the Card Act went into effect.

But at least you worked out a better deal and I much appreciate that you shared this effective strategy with others here on the site.

By: Jeff

Jeff — Wed, 20 Jul 2011 02:13:03 +0000

If you’re just not getting those balance transfer offers anymore, listen up.
I was in the same 29% credit cards hand cuffs until an hour ago.
I just spent time with a “supervisor” at Citibank. Make sure you cut through the front line customer service reps and ask for a supervisor first. I’ve called numerous times over the past year or more explaining how I want and NEED a lower interest rate. I’ve been a perfect customer, paying my payments on time – but I just cannot keep up with the minimum payment. They raised my rate to 29.99 percent a while ago on 3 different cards, and every time I talked to them, they explain “there just aren’t any OTHER rates available for those cards.” It’s sooooooo frustrating. I was told once that I could switch my Gold airlines card to Bronze. I would accrue less miles, but my annual fee would go away. Did you know you could change card types, and NOT lose credit history? I then ask what my options are for changing my current airline card (29.99%) to another card. The bottom line -
I converted one CitiAAdvantage card 29.99% to a Thank you Preferred card at 16% and converted one Thank you (29.99) to a Thank you Preferred card at 16%. I would have done my third card but I’m like 50 bucks over the limit, so I’ll call back after I pay it down!
Hope this info helps some people. It’s going to lower the interest portion of my minimum payments by a couple hundred bucks.

By: Balance Transfers Helper

Balance Transfers Helper — Tue, 07 Jun 2011 14:38:45 +0000

JDS,

I definitely sympathize. These credit limit cuts have been happening to people who are actively paying off credit card debts for over a year now. It is totally absurd.

One thing to consider, however, is that is does take a few weeks for a limit decrease to hit a person’s credit report, so if you act quickly, you may be able to qualify for a balance transfer before your score is impacted.

It is also possible, though not easy, to get limits increased. If you call up your credit card company and they see that you have less debt and less credit on other cards, they may be willing to re-evaluate your limit.

By: JDS

JDS — Mon, 06 Jun 2011 16:02:35 +0000

Balance transfers are great if u can do that but I can’t. Banks are cutting back credit limits on me so that my 1,000 dollar debt against a 10,000 credit is now 1,000 against a 1,500 credit limit, as an example. I owed CITI 5000 against a 20,000 credit limit and they all but took that away! And this has had a dominoe effect since all the others are doing the same thing and consequently your credit score goes to hell. Now it looks like most of my cc accounts are maxed out. And yet nothing has changed from my point of view since I continue to pay on time and more than the minimum. I have never been late on any account either. The only thing that has changed is the banks attitudes.

By: Balance Transfers Helper

Balance Transfers Helper — Thu, 02 Jun 2011 20:11:18 +0000

JDS,

I agree the banks have been really hard on people. If you read some of the emails I got in 2009, you’d be appalled. The key thing to do is take action. If a bank treats you poorly, move your business elsewhere. I would definitely do so with your Chase card, as 29.99% works out to over $300 a year in interest for every $1000 you have on the card. A 0% balance transfer will not only save you the money, but give you the satisfaction of cutting off the flow of your money to Chase.

By: JDS

JDS — Thu, 02 Jun 2011 20:05:05 +0000

To L Lovell – we as consumers have to wake up and smell the coffee “L”. We need to dump these banks. Same thing has happened to many of us since the “economic downturn” and the “bank bailouts”. They have taken advantage of us who continue to pay on time in order to make up for the “bad accounts” that didn’t pay up. Chase has been doing the same thing. 29% interest rates. The only decent bank in my opinion has been AMEX. They have cut some of my available credit but they have not raised my interest rates and have been easy to talk to.

By: Balance Transfers Helper

Balance Transfers Helper — Tue, 31 May 2011 22:01:02 +0000

Is this a business card or a personal card? If this is a business card, they can raise the rate as they please for any reason, such as a single missed payment. If this is a personal card, they can only raise the rate on future purchases. Thus, if they raised your rate in November, only purchases 60 days after you were given notice are being charged 29.99%.

If you have a significant balance or you are being charged 29.99% on everything, I would recommend doing a balance transfer to a new card from a different company. Discover is likely your best bet. You can learn more on the 0% APR Balance Transfer page.

By: L Lovell

L Lovell — Tue, 31 May 2011 12:21:32 +0000

I have had this citicard for years.. It was an AT&T Universal Card. I guess it still is. I had a 9% interest rate. I had never been late and had paid balances off in full several times. I was late a few days (like 5) this past March. When I called to inquire about my interest rate hiking to 29.99%. They said, “Oh that was raised back in November.” I can’t believe I didn’t even notice that. My bad. My husband pays the bill so this is my stupid bad for not looking. But still this seems wrong. The girl on the phone said she’d transfer me to talk to someone else but the guy said, “Oh but you were late on your payment and when I tried to tell him this had nothing to do with November and the fact it wasn’t that late and I had a great history it was nowhere conversation. I really don’t know what to do and with the new laws is this even legal?

By: Balance Transfers Helper

Balance Transfers Helper — Wed, 20 Apr 2011 18:30:00 +0000

D Stone, In all likelihood, your rate was increased back in late 2009, right before the CARD Act went into effect. If you have a balance on the card, I would suggest doing a 0 balance transfer to a new card. At 29.99%, you could save a lot of money by switching cards.

By: D Stone

D Stone — Wed, 20 Apr 2011 17:12:40 +0000

I started researching the interest rate increase by Citicard when I heard Susie Orman on HLN talk about Citi raising the rates. My rate was also raised from 9.9% to 29.9%. When I called about this, I was told I had been late with my payments, I have never been late with a payment. They also tried to charge me late fees, I had to contact my EBill payment company associated with my bank to get on the band wagon. They took the late charge fees off but I am still stuck with the high interest rate. I have written numerous letters, because when I call I get NO WHERE with whom ever I speak with on the phone. My rate is still 29.9%, does anyone have any suggestions?

By: Balance Transfers Helper

Balance Transfers Helper — Wed, 10 Nov 2010 21:40:02 +0000

If you have good credit, then you should absolutely look into balance transfer offers with 0% rates. A 25.99% could cost you over $200 a year for every $1000 you owe. There really is no reason to stick with this card unless you can't get credit elsewhere.