Citibank just raised my wife's APR from 12.9% to 36%. 36%!!!!!!!

[smoogatz]

We have no balance, and haven't carried one for almost five years. Her credit rating is flawless: never a late mortgage, credit-card or car payment, never a utility shutoff, not so much as an unpaid parking ticket. We have no debt except our mortgage--which is small by the current standard--and the lease on our mini van: no student loans, no other car payments, no revolving debt of any kind. We both work full-time, are not in any great danger of being laid off, and earn well above the median for a family of four, especially in our geographic region. We are, in the parlance of the credit-card industry, "deadbeats": people who carry the card for convenience, but who never pay interest for the privilege of doing so. This is a rewards card with a small annual fee, no less. If you want to look for the root cause of our current steep slide into recession, this is it: not the housing industry debacle, though that's certainly a factor. What almost no one's talking about, weirdly, is the great and catastrophic gouging of the American consumer by the credit card industry: when your economy is built on cheap revolving credit--basically creating a false sense of prosperity by selling cheap crap from China to lower middle-class people who pay it off in little chunks over a lifetime--and you deregulate the credit card industry to the extent that it can raise anyone's rates to any limit for any reason at any time, you have just killed the fucking goose that laid the melamine-laced plastic egg of the U.S. economy. If people can't afford to service their credit-card debt, you force them to default. If they're bankrupt, they can't buy cheap crap from China. If they can't buy cheap crap from China, the whole house of cards comes tumbling down. It seems obvious, right? So how come no one's talking about re-regulating the credit card industry and getting the American people out from under their crushing debt-load? 36%? Kiss my ass, Citibank. You get bupkis.

[grannie4peace]

1. holy shit!!!

[hobbit709]

2. Tell them they have two options

Return the rate back to what it was or cancel the card and you will never do business with them and tell everyone you know about this.

[smoogatz]

9. We've already taken option two.

We do 99% of our purchasing with debit cards, and have for several years now. We keep the CC only for travel and emergencies. I'm pretty sure we can get another one at a better rate--maybe through our local credit union.

[Lochloosa]

16. Our Credit Union gave us one @ 8.7%

[onethatcares]

29. my cu gave me one at 7.9 and when I got the paperwork

it was 7.9 to 17.49 variable, but not to be outdone, three weeks later I got a notice that the rate would change to 8.99 with a default rate of 29.unbelieveble. Sheesh, I never even activated the card and don't plan to.

[Statistical]

35. DON'T CANCEL THE CARD.

Ratio between revolving credit line and balance outstanding is the #1 factor to credit score.

Simply cut the card up. Thus you keep the ratio high.
Closing the card reduces both your total credit line AND likely removes an older account reducing age of your accounts.

If that happens you take a hit on your credit score.

Next thing you know letters from 2 others banks "We are reducing your credit line due to lowered credit score and higher revolving balance to credit ratio"

BLAM. Now your credit takes another hit.

Next get letter from a third bank: "Raising you interest rate due to lower credit".

Don't cancel accounts (unless they have annual fee) just cut them up. It costs the credit card company money to send a statement and makes your credit score look better.

[wildflowergardener]

61. card

I am not sure if you noticed up above, the poster said that the card had an annual fee - so I would cancel it. Normally I personally don't cancel cards because what you say is true - but would if there was an annual fee.

[Statistical]

64. Oops.... May be worth it to see if they will cancel the fee.

Threaten to cancel. Ask to remove the fee.
If they don't then cancel. Be prepared for stupidity though.

Paraphrased version:
ME: "I would like you to remove the annual fee from this card because I feel my credit is good enough to not have to pay an annual fee. I have numerous no fee cards and will cancel and use them"
REP: "Sorry the annual fee is required for this card"
ME: "It was required for the last 3 years it was just added recently"
REP: "Well it was waived for you in the past but going forward it is mandatory"
ME: "Well I would like to cancel the account effective today"
REP: "Are you sure you don't want to leave the account open. Closing the account can negatively affect your credit?"
ME: "With the annual fee I am not interest. Please close it".
REP: "What could we do to have you keep the card open"
ME: "????? Remove the annual fee" :wtf:
REP: "So if we remove the annual fee you will keep the account open?"
(Twilight Zone music)
ME: "Yes. That is what I called about and we have been talking about for last 5 minutes but you said it was not possible". :banghead:
REP: "I will go ahead and remove the annual fee from the account".
ME: "????. Thanks. I guess"

[Thickasabrick]

66. I enjoyed the smilies during your post. Have had the same experience

and your expressed it beautifully.

[PinkyisBlue]

98. Unless it's a Bank of America credit card.

If it's a BofA credit card, I recommend cancelling the account. I had a BofA credit card I wasn't using and, lo and behold, received a statement in the mail with an errant charge on the account. It took a long time and a lot of written communications to get the charge removed.

In my experience, BofA is the worst of the banks. I always paid off the balance each month by the due date, so the rates and late fees didn't affect me. Once, they mailed my credit card statement AFTER the due date, hoping I wouldn't notice and would incur the large late fee (in addition to the exorbitant rate fee). That month, I had to telephone the bank prior to receiving my statement to determine exactly what I owed. Another thing they have done is not post a payment promptly, when sent to them via mail. That way, it looks like it was sent in late and will incur extra fees.

The best way to deal with BofA is to close your account with them or, if this isn't possible, make your payment in person at a local bank branch and obtain the receipt of payment right then.

The other thing that irritates me about BofA is how superficial it is; they had a "greeter" at the bank who is very friendly and directs you to the appropriate person in the bank, but then the bank tries to pull all these underhanded, deceitful schemes to take more money from you.

I haven't had such negative experiences with the other banks, but maybe others have.

[CTyankee]

92. I haven't cancelled credit cards I no longer use but my bank cancelled the

one they issued to me due to lack of usage. I have done nothing in response. This is a bank where I have a small account just for household expenses. Will this lower my credit rating?

[Ichingcarpenter]

3. Saudi Arabia thanks you for your support

Now go use the card at one of our mutually supporting Exxon stations.

That's usury and theft, just like their friends at Exxon.

[malaise]

4. Burn the card

Fuck Citibank.

[ProdigalJunkMail]

5. it does suck...

but if you never carry a balance, just dump that card and go for another with better terms..

sP

[NeedleCast]

6. Easy Fix

tell them to get bent or reduce the rate.

[ceile]

7. Cancel the card. n/t

[Phoebe Loosinhouse]

8. The strange thing is, even if you pay your bill in full every month,

they are still making money because they charge the vendors where you make the purchases.

[smoogatz]

11. Right, but only about 2% of the transaction value.

What REALLY irks me is that these mofos are in line for a taxpayer-funded bailout.

[w4rma]

27. ONLY? ONLY? That's the sales tax in some states! (nt)

[icnorth]

65. That 2% of the transaction value

if time factored works out to 2% per month or 24% per year.

[smoogatz]

90. Nope--it's a one-time charge, paid by the merchant.

They pay it on every CC transaction. The CC companies make money at both ends of most retail transactions in the developed world. They've got millions of people shackled to a lifetime of high interest debt. And they still need my tax dollars to bail them out?

[icnorth]

101. I didn't say it wasn't a one-time charge...

what I said was IF it was time factored it would be equivalent to 2% per month. The credit card company pays 98 cents on the dollar to the merchant. The credit card company then expects to recover 100 cents on the dollar from the credit card holder within 30 days of the transaction date.

Based on that premise the credit card company is expecting to make 2% on that "merchant loan" within 30 days. 2% for a 30 day "merchant loan" is equivalent to an annual interest rate of 24%. The credit card company is in effect "discounting" a note due to mature in 30 days. If the card is not paid within 30 days, interest charges accrue against the credit card holder.

[Dr.Phool]

82. It can go higher than that.

Plus they charge the merchant a "swipe fee". Those will eat a merchant alive. That's why a lot of places have a minimum credit card charge.

I know, in my carry-out restaurant, we'd get a lunch delivery order for 7 people, on six different credit cards, and one cash. The fees killed us.

And fuck Citi. Before I opted out of credit card solicitations (www.ftc.gov), Me and my wife were getting over 20 solicitations every week from Citi alone.

And as far as your credit score, that's bullshit. My wife had a card that she carried around a $5,000 balance on for a while, with a $17,000 limit. Out of the blue, the dropped her limit to $5,000 for no reason, and after we paid it down, they dropped it to $3,000. No explanations why. We don't do any business with that bank anymore.

[JerseygirlCT]

42. Depending on the card, 2-4%

so don't cry too much for their lost income.

We also carry cards for convenience. They are paid in full every month. I got the same sort of letter from Citibank, and while it pisses me off, I'm just not using it as much, and will continue to pay every month in full.

Stupid and short-sighted attempt by them to catch people being hurt by this downturn and make a few more bucks.

[NNN0LHI]

10. Calm down and call them up and ask them to lower it to where it was

But if you don't carry a balance why worry anyway?

Interest on no balance is still Ø regardless of the interest rate.

I don't carry a balance either so I don't care what interest rate they want to theoretically charge me because there won't be any balance. But if you call them up I bet they would lower it if you asked.

Don

[lumberjack_jeff]

17. Better yet, tell them that you've gotten an offer from BofA for a rewards card with no fee.

I don't know what the interest rate is because (like you) I pay it off each month.

Bank of American visa rewards.

[NNN0LHI]

28. I don't know if that would work I think they are all in cahoots?

They probably know whether you got an offer from another company or not?

Wouldn't surprise me?

Don

[lumberjack_jeff]

54. Regardless, BofA has a card with no fee (competitive rates - I think) and rewards.

You want that one... or one just like it.

[CoffeeCat]

12. As Dave Ramsey says...

..."This is not a game folks. The credit-card companies will win the majority of the time."

These companies are pure evil. They lobbied our politicians for unlimited powers against us. They can
charge us whatever interest rate they damn well please. They can charge unreasonable late fees and give
you unfair time periods to pay your bill.

Hell, they can call in your entire balance if they want and cut you off at a moment's notice.

I know many very intelligent people who do outsmart these companies. They pay their bills off monthly
and get free miles, etc. However, 95 percent of credit-card owners are being screwed over royally.
They try to screw you. They have people who are thinking night and day about ways to screw you over
and get more of your money.

This should come as no surprise.

Credit-card companies aren't doing well, because people have stopped spending. They are now coming after
us and raising our interest rates and late fees--in order to find profit somewhere else.

These people are bloodsucking loan sharks and our politicians have helped them every step of the way.

[Warpy]

13. Cut it up and send it in

Open a checking account specifically for monthly ATM purchases. Deposit a check every month to replenish it.

That limits your losses should the account get hacked plus afford you the convenience of plastic without the spectre of 36% interest plus junk fees should you neglect to pay the bill--or something delays it until after the grace period.

Just make sure you get a daily ATM limit high enough you won't have to fumble for spare change and low enough that you won't get nailed should a loss occur.

I got disgusted with the credit card companies when they started to charge junk fees on top of that 18 3/4% interest and I've lived without them since 1991. It can be done.

[radfringe]

14. they are forcing defaults

by raising the rates that high

and then they will come crawling for a bailout...

NO MORE BAILOUTS to WALL STREET unless they "trickle-down" SIGNIFICANT interest rate cuts. Cap the interest rates to x% over prime.

[Stephanie]

24. Why though?

It's a mystery to me why they force people into default. But under their rules many of us have no alternative. I didn't notice that Citi had raised my minimum payment. The autopayment went through on time but I had underpaid them by $2.75. INSTANTLY my rate went from 5.99% to 29.99%. There was no discussing it with them. They treated it is as a missed payment. My minimum instantly went to an amount I had no hope of paying. WHAT is the point of that? I don't get it.

[Robbien]

38. Because they get to book higher profits

whether you pay them or not. Bonuses are based on recording profits not collecting them.

If you go into default and they get to charge you even more fees. More recorded profits.

A win win for them.

[Stephanie]

53. I had no idea.

Thanks for explaining that to me, I think. That's just evil.

[Dr.Phool]

83. Fees. They live for fees.

I catch them all the time, moving up payment due dates. If you don't watch them carefully, they'll trick you into a late fee, and raise your rates.

Chase has pulled that shit on me a few times. I never give them a chance. I check my statement online on the closing date, and send the payment before I get the bill.

By the way. Those interest rates are compounded daily. If you pay it like that, you can cut your effective interest rate in half.

[Stephanie]

99. That's exactly what they did

I had been paying the same amount for months, about $100 more than my minimum payment. Suddenly the minimum went up $2.75 more than my usual payment. It was a dirty trick and baffling. Then after the interest rate went up, my minimum was raised to a ridiculous amount I simply could not pay. I never understood why they would want to force people into default, but after reading the other answer to my question, above, now I get it. And fuck them. I have been conscientious about trying to pay off my balance, but now I don't care.

[skeewee08]

15. They based this on your zip code, do you have a lot homes in foreclosure?

also there looking at they way other people in surrounding zip codes payment history ie.... if John Doe is 3 months late on his credit card then their is a chane you will be too. I will look for the link and provide.

[smoogatz]

21. No need for a link--I've heard this.

I'm not aware of large numbers of homes here in foreclosure: we never really got the big housing frenzy that hit other parts of the country. Our mortgage isn't underwater, either, so it's not that. I've heard that they're trying to ditch card holders who don't carry balances--I think that's what's going on.

[CJCRANE]

102. Yes, that's it.

There's a word for it...(I can't remember it right now, I used to work for a credit card company).

They have a clean out every now and then of the less profitable customers and the more risky ones.

[Mojorabbit]

18. They just raised mine too

upped it by 12 percent from what it was. I am waiting till I get control of my anger before I call them.

[Mojorabbit]

30. Well I sucked it up and called

The girl told me they are doing it across the board to everyone and it is nothing I did as I have had an outstanding acct with them for 25 years. I said no thanks to the new rate and she reduced it to the previous rate which will be good till it expires next year, credited me for the outrageous interst rate they charged me, and then it will not be renewed. That is their new policy.

[DCKit]

62. Bullshit. They're doing it more to some than others.

It's all based on formulas. My new formula is "prime + 17.99%" (from 12.85% total current interest) while the S.O. just got a notice for something in the range of 17.85% total.

It's time for Congress to eat crow and reign in these MoFos - they are intentionally driving people into poverty.

[Mojorabbit]

68. I am sure there is a formula

my original rate was 10.9 percent and went up to 20 something percent. The upshot is they put it back to where it was when I said I would not pay that kind of interest and under this agreement my card will no longer be renewed when it comes up for renewal in 2010. She said they were raising everyone's rate across the board due to the economy. I doubt it is true but that is what I was told.

[DCKit]

80. Yes, I'm sure they're hurting much with the 13%-29% rates they're currently charging.

:sarcasm:

You did the correct thing by holding them to the original agreement. On the plus side, those of us not bankrupted by these parasites might wise up and get off the cards for good. I've heard more than one person say the simply can't afford to make payments at the new rates.

It's going to be a scene when management has to explain to the board and shareholders why they're no longer making any money from their CC division after a healthy chunk of the population learns to live without them.

[Joanne98]

19. Chase raised my aunt's interest rate to 30% for being late ONCE!

She has a small business and needed credit to buy with. She tried to pay it off, as much as 5000$ a month, but couldn't. She paid them for months because she didn't know what to do. She paid them WAY more than she owed them. She finally declared bankruptcy. The CC's are killing this country. If the pols don't do something about them they should all be FIRED!

In fact. EVERYBODY who voted for the 2005 banking bill should be FIRED. I don't care if their Democrats either! What a fucking STUPID thing to do. Anybody that stupid shouldn't be in Congress!

[rox63]

20. My only major credit card is through a credit union

My current interest rate on that is 7%. They have actually lowered their rates when the Fed lowered interest rates. I will never have a credit card with a large bank again, if I can help it.

[ejpoeta]

100. we don't have any credit cards, but we do have a personal loan

through my husband's credit union. actually, we got our house via personal loan, and moving the house, and a wood furnace.... and the car. now, we have the car loan and two others left. we are going to try to pay off the one loan with our tax refund and then we will have the car and the one other one left. but bob gets dividends from his credit union too!! much better than my m&t account. the only reason i keep my account is that there is a branch right in town. bob's credit union is a good half an hour away.

[Southpaw07]

22. Ours was raised to 29% by BOA

In the same boat as you. I have never had a balance on a CC. I am going to cancel it but, again, with not balance and no intent to use it anytime soon, haven't gotten around to it yet. Interesting note, though. I have been working with a friend of mine to help him budget and pay down his CC debt. He has about $14,000 on a BOA card at 4.99%. So far they have not changed the rate but we have a plan ready just in case.

[Davis_X_Machina]

23. If they raise your rate...

...you can usually agree to continue to make payments under the existing agreement, including the rate, until the balance is paid off, on condition that you stay current, and make no new charges.

This has to be done in writing, and it's a good idea to send it return-receipt requested.

I've done this three or four times over the years. In one case, they called me back, and asked what they could do to keep my business. I told them to drop the rate, and they did.

[w4rma]

31. very useful information. (nt)

[smoogatz]

37. We have zero balance. Nada. Zipperino.

They're trying to get rid of us, seems to me, because they're losing money on us. They still have to pay the administrative costs associated with out account, but they're not making a dime in interest.

[Belial]

25. Here is the great part about that... you GET to choose..

Cut it up.. find another CC that you like.

[TBF]

26. Um, you could send your complaint to Mr. Biden. He knows a little something about this:

http://www.pacificviews.org/weblog/archives/000966.html

[deoxyribonuclease]

32. I have perfect credit, my APR was raised to 32% (Capital One)

Shouldn't make a difference for me since I always pay the full balance and never miss a payment (I use the card for cash back and airline mileage), but what the credit card company doing is just excessive.

[radfringe]

49. it's called usuary... and it use to be illegal... n/t

[radfringe]

50. it's called usuary... and it use to be illegal... n/t

[specimenfred1984]

33. I've been talking about it for years as have other financial people

We are ignored, called traitors, conspiracy theorists, losers, doomers, etc... The fascist government of the U.S. may finally get around to limiting cc companies from outrageous rates as they have now regulated things such as electronic oil trading that has correctly plummeted in price since its June 08 regulation.

Until then, banks will target people with good credit because those people have money, it's that simple. Other people are flat broke, no credit, no savings, no 401k/IRAs, no jobs, no health care -- about 1/2 of the U.S. is now living as a 3rd world country. It's not as bad a Ecuador where people are living in bamboo huts but it's close.

[prolesunited]

34. You may not want to cancel it

as it could lower your FICO score. You certainly don't want to use it, but consider these factors as well:

Is it a card you've held of a long time? The length of your credit history is a factor, so it you've held it a really long time and other cards are more recently opened, you might want to keep it.

Also, what is your credit line. If it's a large amount, closing it would reduce your amount of available credit. So if you had balances on other cards and closing it would take out $15,000 of credit, the balances you are carrying would eat up a greater percentage of your available credit. That could trigger rate changes on your other cards as it would look like you were in trouble.

[nichomachus]

41. This is an important point -- it will affect your FICO score

[carlyhippy]

36. holey moley! I have a HUGE balance on a card but it was a bal transfer

it's supposed to be locked at 4.9, if it goes to 36% I am in deep poo

[pinniped]

48. If they try this shit make sure you opt out of the changes.

The account will be closed, but you can supposedly pay at the old rate until the balance is zero. The jerks try to sneak these notices by, so make sure you open every crap piece of mail the CC sends you. You may have 30 days to opt out or as few as 2 weeks. It depends.

There must be a law that requires the choice to opt out, because these CC assholes don't want people to opt out of anything.

[carlyhippy]

52. thanks for the heads up

I usually don't pay attention to those pieces of mail, now I will make sure I do.

[robinlynne]

39. i think we the taxpayers should charge them the exact same interest on OUR

bailout money they are borrowing as they charge us!!!!!!!

[JerseygirlCT]

43. That's a great point!

Can you see that? It would be great to see just one senator insist on this before shelling out any more money to these places.

[robinlynne]

72. yeah.. 36% interest! Citibank/Republicans : That is usury. Outrageous!

Oh it's outrageous is it, then let's stabilize interest rates at, let's see...3%?...

[serrano2008]

77. This is a great idea...I just submitted to Senator McCaskill.

Everybody send this idea to their Senators, radio shows, Daily Show, whoever so it will pick up steam.

[terisan]

40. Everyone complains but few hold the Democratic Congress accountable.

Dems elected Joseph Biden to Vice Presidency, keep praising Pres. Obama, cheer on the Democrats in Congress but if you are unwilling to hold them accountable for the credit card legislation they have voted for and continue to let stand---how can credit card holders blame anyone but themselves?

[OPERATIONMINDCRIME]

44. Either It Was A Mistake On Their Part That You Call To Correct, Or She Was Late On Payments.

No way they jacked it up that much just because. No way.

[Mojorabbit]

47. Wrong.

See my post above.

[OPERATIONMINDCRIME]

93. Not Wrong.

Yours jumped 12 points, not 23. I wouldn't have responded that way to YOUR rate hike. I'm responding that way to the OP's rate hike. Your trying to compare the two as if equal, and then having the audacity to issue a firm declaration that I'm wrong, makes you look quite silly to me. :hi:

[SteveG]

58. Wrongo

I have a credit score of over 800, have had my Citybank card for nearly 20 years, never missed a payment, never late, always payed significantly more than the minimum. last month my rate went from 11% to 25%. I called, no help. So I dipped into my cash reserves and paid the sucker off, and stuck the card in the safe. Screw them.

[OPERATIONMINDCRIME]

94. Not Wrong.

Yours jumped 14 points, not 23. I wouldn't have responded that way to YOUR rate hike. I'm responding that way to the OP's rate hike. Your trying to compare the two as if equal, and then having the audacity to issue a firm declaration that I'm wrong, makes you look quite silly to me. :hi:

[alcibiades_mystery]

60. You're wrong

Citibank increased ALL rates on some classes of card as of February 1. I received a letter in October that they would be changing my rate from prime+5% to 16.99%. That in fact happened on February 1. Small balance on the card (less than $300 out of $25,000 credit line), no late payments, nothing, and I've had the card since 1992. I called and they offered the following deal: reduce back to prime+5%, but then the card will close on the currently printed expiration date. I was flabbergasted, and refused that deal. Then, looking over my totally clean credit, the guy reduced me to prime+10.99 (i.e., 14.24%), and again, for no reason whatsoever other than their internal difficulties. He asked me if I wanted that instead of 16.99%, and I laughed and said, well, yes, I'd prefer 14.24% to 16.99%, since I'm not a fucking idiot. :wow: Mind you, we have no debt other than the small balance we carry on that card from time to time, which never exceeds 2-3% of our available credit, and our credit score, especially given our huge available credit, is pretty much perfect. The interest rate spike at Citi is, as far as i can tell, arbitrary with respect to credit risk, and utterly determined by some internal policy shift. I suspect that in my case they're trying to get me to close the card because I have such a huge available credit line, which probably counts something against their books in mark-to-market. I was certainly being incentivized to close the account.

[Mojorabbit]

70. I wish I knew what the parameters are

I opted for the return to the previous rate and let the card expire next year. I have had that platinum card for 25 years and have an excellent credit rating and I carry a high balance on it. It is the card I use to order over the internet as I don't get out much to do actual shopping. I figure if they don't want my business they can piss off.

[alcibiades_mystery]

81. Mine's a "Platinum Premium" too

Started out as the first card I got as a freshman in college. Never abused the thing, and no late payments in 17 years. Now they want me to close it? It's completely bizarre behavior.

[OPERATIONMINDCRIME]

96. Not Wrong.

Yours jumped only a few points, not 23. I wouldn't have responded that way to YOUR rate hike. I'm responding that way to the OP's rate hike. Your trying to compare the two as if equal, and then having the audacity to issue a firm declaration that I'm wrong, makes you look quite silly to me. :hi:

[gordianot]

45. Call them and get it down

[pinniped]

46. Crapital One is the latest to pull this shit with me.

No wonder they kept sending me tons of balance transfer checks in the past few weeks.

They want 17.XX%, a 10.XX% increase! I guess they weren't making enough $$ from me.

Needless to say, I'm calling them this week to decline their offer.

Washington Mutual also sucks, now that the assholes from JP Morgan Chase took it over. I'm closing them out, too.

HSBC also sucks.

[laylah]

63. As an FYI...

Crapitol (love it! :rofl: ) One got $3.56 BILLION from *dumbass's bailout last year. I have one of their cards, life's occurrences has made it impossible for me to keep up with the mortgage, car payment, utilities, etc. so I called them for help in figuring their bill out. They were SO rude and informed me no help is available unless I am unemployed :mad: What a bunch of assholes! I am going to a consumer credit counselor next week. I WANT to pay my bills but I need to live, dammit!

[WI_DEM]

51. By the end of this year, I'm going to have all my credit cards paid off and then fuck 'em.

[Belial]

56. Good Job! We finished paying ours off in December.. and

it does very very good!

[mtnester]

55. This includes any credit card backed by Citibank

If you have a Sears card, you just got the "up to 30%" info packet.

This is a worse usery rate than the Raygun years.

[SteveG]

59. Home Depot as well. (nt)

nt

[Dukkha]

57. fuck them. if your credit's ok any other place will offer a 0% card for a year

I had one that just completed the year cycle and went to 6%, then they offered another pre-approved 12k limit for 0% again. I don't even make much, my last credit score was 801 because I'm disciplined enough to avoid compulsive spending.

[MasonJar]

67. Get rid of the card. These cards often do not like to have customers who do

carry a balance.

[Broken_Hero]

69. Chase is doing something similar to us

our rate is going from 15% to 19.9 %

ETA:our chase credit card

[Mojorabbit]

71. I have a Chase at 6 percent

I guess I better check that statement too.

[propagandagirl]

73. 29.99%!!

I have two WaMu, now Chase, credit cards. Never late. Pay more than the minimum each month. Was notified by mail that my new interest rate is 29.99%!!!!

[BlooInBloo]

74. If you don't like what somebody is selling, don't buy it. What's the problem?

[2Design]

75. get another card - there are a lot of 0% still out there - you just have to find them

disneyworld has one from chase for 0% on purchases for 6 months

[defendandprotect]

76. This is how capitalism kills itself --- seriously!!

Unregulated capitalism is merely organized crime ---

and the only capitalists who prosper from this are the last ones to fall ---

and the others who walk away with the money -- and bail outs!

Capitalism isn't about competititon - it's about killing the competititon.

[serrano2008]

78. EVERYONE - get rid of them Credit Cards!! It ain't worth it.

I'm a big Dave Ramsey supporter because no matter what kind of goofy political stuff he spouts sometimes, he will help you get out of debt and free from having to deal with this kind of sh*t.

You'll never win with the credit card companies, it ain't even worth it to try.

[VPStoltz]

79. I've said it before, but got spank on this site to doing so, but...

the credit scoring companies are a scam, a racket, a creation of the lending companies, manipulators, liars, and judging by what they do to average working Americans, all owned by Republicans.
Credit scoring companies insert errors into your report to mess with your score.
They battle you when you try to resolve the errors.
I had a two year battle with Equifax over something that never occurred.

[Pithy]

84. think before you cancel

You have a right to be outraged. This is happening all over this country. However, it will become nearly impossible even for people even with excellent credit to get new cards for at least the next 2 years due to the current economic climate. If, God forbid, your other cards get the limit decreased or something catastrophic happens and you NEED to use that card, it will be difficult to get a new card for a while. Just stick it in a drawer with your tighty whities and use it every 2-3 months to buy something small and pay it off after the statement cuts.

If you cancel the card to 'teach them a lesson,' think again. They don't give a rat's ass and the only injured party in the long run might be you.

Credit repair and research has been my obsession for the past 2 years. I feel strongly that it's not wise to cancel any card in good standing at this time, especially since you never carry a balance and therefore are not adversely affected by the ratejack. The time to get credit is when you don't need it, because you sure aren't going to be able to get it when you DO need it, like in the case of job loss or medical emergency.

Seriously, I don't think most people realize what's coming down the pike in the next 6-12 months. I would not cancel ANY card unless they've decreased your limit to insulting levels, because it's going to be a long while before we see issuers granting new credit. They're running scared.

I would call the company, express your concern over the undeserved ratejack and tell them you are considering canceling the account unless they waive the annual fee. (That way you don't pay a thing in interest or fees and you still have the card in case of emergency, but of course you won't say this part to the rep.)

I would also ask for the retention department instead of talking with the first CR who answers the phone. You will have better luck getting what you want.

[SmileyRose]

86. Job loss/medical emergency.

I've had both at the same time at my house more than once in over 30 years of marriage and I can promise you, running up the Visa is not the answer. I don't judge anyone who chooses to do that but the fact is folks are usually never able to dig out when they do. We made that awful choice the first time it happened to us and it took 14 years to dig out. No sooner than we got them paid off by working multiple jobs each and whammo. We had to get very creative and honestly, if it weren't for the great fortune of living near a college and finding sisters looking for a cheap place to rent I am not sure we would have made it. They rented 2 bedrooms at our house and the combined paid the mortgage plus a good portion of the utilities. It still took us a decade or more to dig out but we didn't have to run up the cards to survive. We also were fortunate to be able to go begging to family for help with the bare necessities and managed to get out from the cost of owning one car by selling it. I realize not everyone has the ability to be that kind of creative but regardless, adding debt to an already stressful situation was a bad choice for us the first time.

[Pithy]

87. I totally agree.

I'm not normally a Suze Orman fan but her latest book is right on the money. The most important thing you can right now is pay off all your credit cards and keep them paid off. And have 8 months living expenses saved, of course.

However, if you LIKE having a nice shiny credit card held back in reserve for emergencies, convenience, whatever - this isn't the time to get your nose out of joint and start canceling what you have, because they aren't going to be offering new ones for the next 12-24 months, or even longer. Even with perfect credit, you're not likely to get limits comparable to what you currently have. Everyone is getting hit with scenarios like this - it's not you. The problem is the credit card companies. They got greedy. They overreached with derivatives and now they have to comply with Basel II and can't do it. So they're going to cut risk in every area and add fees - anything they can think of to drum up extra cash.

I agree - they're a racket. I'm just now recovering from a rough spot in 2001 and getting my scores back to a decent level. It's taken 2 years of daily work, but we accomplished our goal - refinancing our home with a great rate and better terms in December 08. Now we're in maintenance and I'm really glad I started the process of rebuilding in mid-2007, because this is going to be a very tough climate to get ANY new credit in for the foreseeable future.

Take it or leave it - just my 2 cents based on 2 years of OCD credit repair research and following the news obsessively every day.

I highly suggest anyone who's interested in this topic pay a visit to creditboards.com It is the most comprehensive and helpful forum if you want to repair your credit or keep what you have. It's set up very much like DU. I thought my credit was beyond fixing and now all our scores are in the mid-700s. It's an invaluable resource, especially in these troubled economic times.

[SmileyRose]

89. 8 months emergency fund is OK, however

I can tell you from our experience, especially with a medical emergency, that it's not possible for the majority of Americans to save enough money to weather a long medical leave with their normal lifestyle. In fact, I'd say it's a genuine challenge for most Americans to EVER save up 8 months worth of their normal income in addition to the recommended healthcare savings, retirement savings, college for the kids savings, pay cash for the next car savings, 20% down on the house savings etc etc.

The truth is we NEED better community based safety nets. When people, desperately willing to work, experience job loss for a year or more then our community has failed. When children end up in bankruptcy and homeless because Mom or Dad had a long term medical crisis then our community has failed. I'm not really talking about government money programs, although we need that too. I'm talking about the social fabric that is supposed to hold our communities together.

[VPStoltz]

91. Believe me, I've learned the ins and outs.

I've never cancelled and have never asked for a new card in 5-6 years. Don't need one really. I have been dinged though because I bought into a business and needed some investment capital. Makes sense doesn't it? Borrow money to built your credit and you get dinged by the credit reporting companies. Hopefully, the score will go back up once the loans are paid off. We'll see. They will probably think of something to hold it down.

[SmileyRose]

85. Ya, I got the nastygram from Citi a couple months ago.

from 6.9 to 24.9 -- 39 default. Dropped my credit line to 1/3 of what it was. Not that I care as it was way too high except lowering it screws with my FICO.

Citi is insane and I fired their asses. Lost a whopping 10 points on my FICO for it but it was worth it.

[JCMach1]

88. My 'Islamic' Bank Cannot charge interest... One place Sharia is superior!

And you thought the 'evil doers' taking over was going to be ALL BAD... :sarcasm:

Instead there is reasonable yearly fee... The rest of their profit comes from my usage of THEIR card(i.e. they make their profit from the sales).

Limits are never extraordinarily high, but the NO INTEREST is definitely worth it...


Somehow I doubt there are any Islamic Banks in the USA... :(

[Veritas_et_Aequitas]

97. No, but I was invovled in a discussion about usury

and how could a faithful Catholic theoretically retool the banking industry and keep it profitable. The information you provided is very interesting. Thanks!

[JCMach1]

104. Exactly... usury is essentially the concept involved

With rates of as much as 31pts above prime, I would call it loan sharking on the part of the card companies.

[Veritas_et_Aequitas]

95. Same thing happened to my mother.

She just cut up the card.

[just_shoot_me]

103. Reaction to Dec. '08 Fed regulations: CC banks bleeding the corpse while they still can

Could it be that the uptick in arbitrary credit card interest rate increases is the predictable reaction of these bandits to the first real attempt to rein them in 30+ years: the Federal Reserve's passage in December (http://www.federalreserve.gov/newsevents/press/bcreg/20081218a.htm) of rules prohibiting some of the more egregious credit card practices. Giving the banks until July of 2010 to implement them, however, appears to be only giving the CC lenders a window to squeeze the consumers even more at the worst time. If the Fed really wanted to protect consumers they'd freeze card interest rate hikes NOW, on past balances at least, except for the most negligent borrowers. How many newly unemployed cardholders out there can afford these hikes? How many more foreclosures and bankruptcies will they create?? WHAT was the Fed thinking by passing these rules with such a long phase-in but no protection for consumers from the apparent backlash by the lenders in the interim???

By the way, I read a news article last fall that some congressmen were hoping to introduce a bill this year to help bail-out consumers (for once) from credit card debt, including debt forgiveness. Has anyone heard anything about this?