What the heck?
I opened my mail today, and in it was a letter from Citibank raising our credit card interest from 8.9 to 29.99%!
We’ve never been late. We usually pay off the card monthly. And we have a 22K credit line on that card. (Don’t ask me why or how, they just kept increasing it!) And did I mention we just got this card to rack up airline miles?
What on earth are they thinking? We bail them out, and they stick it to us? Yeah, baby...your tax dollars at work.
We’ve been given two options:
Take it and like it.
Opt out and the card will be cancelled.
I want to cancel the card, but am wary of the effect it will have on my credit rating. I definitely want to be wise about it!
I decided to search the web, knowing full well I wasn’t the only gunzel to experience this most glorious event, and sure enough, plenty people have been hit with this since the first of the year.
I found some really good information on LaToya’s Credit / Debt Blog. And be sure to read comment #13 on her blog...it hands out good advice from Scott.
Go read it while I stomp around the house, fuming and saying bad words. Even the dogs are cowering. (Not really, they’re eating rawhide ears and having the time of their lives - don't you EVEN call SPCA.)
25 comments:
WHere are the good guys in the white hats?
WHERE???
I read last week that some were trying to get in before the new law- Evidently Citi did .. Nice
Credit cards are the devil.
Good info from LaToya's blog, whew, glad I don't have to use it. Will pass it on.
They are thieves. There is NO way they can justify that. I hear it has been happening a lot.
If you keep it, use it, and pay it off each month then you'll stick it to them because they shouldn't be able to charge interested if you pay it off each month. We never carry a balance and only use ours to rack up the miles but we're hearing the Southwest is changing their reward system and it will take much longer and much more use of the card to get points. grrrr......
Cancel the card. I'd cut that baby up and send it to the president of Citibank.
Be interesting to see if we get the same letter.
All the banks are doing this, or at least most of them. Gotta pay those million + $ bonuses to their CEO's. It's time for a revolution. Like midlife slices said, pay it off and screw them out of the interest. If all America started switching to whomever they find that doesn't do this the rest of the banks will figure it out when they lose their customers. Take your money to where your treated right.
Thanks for the info. I got the same letter and had the same questions. So far my solution has been to not use it and leave no balance on it that could be subject to their greedy 30%.
Did you get it on one of those offers where they give you low interest for a set period of time? Seriously, they're like drug dealers. "First hit's free."
I say cancel it, there are plenty of other card carriers.
While having the card canceled could negatively impact your credit score, you'd also be turning loose of $22K in potential debt -- because that's how that credit limit shows up on your credit report.
you are not a good customer to them because you pay your bills......they like the ones who don't pay......that's how they make all their money!!!!!
i would be stomping around too!!!!
good luck!!!!
Find a different Credit Card..possibly at your local bank..then cancel that one and tell Citibank that you cut it into a million little pieces:)
Oh no! Wow, isn't it great what they can do. I'm off to read that blog... and I'm interested in what you decide to do!
Hey Janie, Just found this news article http://blogs.moneycentral.msn.com/topstocks/archive/2009/10/20/citibank-yanks-mastercards.aspx
It seems that Citibank is canceling accounts without notice, especially cards connected to oil companies.
There is some common sense to this...you stated we usually pay it off every month. We are never late. So they really don't make an optimum amount of money per dollar loaned. You are too good of a payer for a credit card.
The only way to fix it is to call them and ask them to reduce it. If they won't, then cancel ON THE PHONE. That always shakes them up.
Been there, done that and have won the battle.
I thought I would be immune. No such luck. I feel your wrath!!
I'm with captain dumbass on this. They're like drug dealers. I say cancel the card. Just read the fine print
Oh I'd be givin' it BACK.
Er....did Vodka Mom mean the guys in the white coats? Cos...er....hehe....yeah :)
I got the same letter. I assumed they did it because I never leave a balance (hence it really doesn't matter cuz I pay no interest), but maybe there's more to the story. Good to know we're not alone.
Just calling them up to ask them to return to the lower rate always works for us. If they don't budge tell them immediately you want to cancel the card. They'll give you the lower rate.
How awful. Crooks. They're all crooks, I tell you. Credit cards are like crack. You get a taste and think you need it. I say leave the account alone, paid off in full, and open up another account with a reasonable credit limit. Then close the Citibank account once you've established credit with the other one. I'm no expert, but it should lessen the blow to your credit score.
Got the letter today. Jacked it up to 25.99%.
Yet another argument against the ongoing bailout of corporate America.
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