Originated from
Dolans

Choosing whether of cancel long-held credit card due to huge jump in interest rates

Recently Citi Cards notified me that the interest rate on my credit card would go up to around 23.99% on Dec. 20. I was given the choice of "earning" a special rate until Dec. 31, 2011by borrowing $3000 on my card. I have had this card for 26 years and have never missed any payments and usually pay in full each month so that I don't carry interest. Would I be better off to notify them that I will be cancelling at the end of my current membership (October, 2010)? Or would it be best to keep the card, never use it, and if I should use it, continue to pay the full balance. I am angry about their methods and the fact that they use good customers in this way in addition to the fact that Citi Bank was one of the major recipients of TARP funds. So, this is coloring my decision making and I'd like an outside opinion. Thanks for any ideas you have.


Answer this question
Share Send to a friend Watch Report
 
 

4 Posted Answers
Order by

 

If I were in your position, I would cancel the card cold turkey to make a statement.  The longer you hold onto the card, whether you are going to use it or not, the more likely you will eventually use it, and run the risk of having to pay interest (penalty for you, and income for them) if you miss your payment, and the credit card company knows it.
Posted 2009-11-21T23:00:06Z
Helpful?(1)
Rated as Best Answer
 
86 answers
6 helpful answers

Here are some useful links for information on bankruptcy , debt consolidation and for getting help with credit card debt .

I would call them up first and explain your situation.  If they still can not help you and reward you for being such a good customer I would get rid of the card you have with them.  You might also want to shop around and see if you can get a better deal from someone else first so you are not left without a credit card.
Posted 2009-11-26T16:41:48Z
Pete was invited by Yedda to answer this question.

Helpful?(1)
Rated as Best Answer
 
31 answers
1 helpful answer

Keep the card, use it as you have been, we have to consider the source and hope it changes someday.  I regard my bank as a necessary enemy it keeps me on my toes with my finances.
Posted 2009-12-26T03:14:07Z
Rescuer was invited by Yedda to answer this question.

Helpful?(0)
Rated #3 out of 4
 
15 answers
1 helpful answer

I got the same letter as you, I am going to keep my card, but you might want to cal them and bring up the CARD act of 2009 if you decide to state your situation with them. 23% is way out of line, if you pay on time, should be more like 10-15% with 15% being high. According to the act, they cannot bump your rate, should you decide to close your account.
Posted 2010-01-04T06:17:35Z
nordberg25 was invited by Yedda to answer this question.

Helpful?(0)
Rated #4 out of 4

Sign in to participate

Got an answer for Oma S? Would you like to comment on the posted answers, or vote for the one which you think is the best?

Sign up for a free account, or sign in (if you're already a member).

Explore Related Questions

Other people asked questions on similar topics, check out the answers they received:


Q:

Combining multiple credit cards into one credit card - Is my credit rating effected?

I have multiple credit cards from the same bank. I would like to combine these credit cards into one card and keep the same ...
Submitted by Nancy   1 year ago.
  • 1 answer
  • viewed 178 times
Last answer posted 10 months ago by AnnAnderson1015


Q:

Personal Low Best Interest Rate Credit Card Offer

Where do I find the credit card companies with the lowest interest rates?
Submitted by John R   9 months ago.
  • 4 answers
  • viewed 366 times
Last answer posted 1 month ago by nordberg25


Q:

What can i do about chase credit card rates that ...

what can i do about chase credit card rates that have gotten out of control
Submitted by dmsman   1 year ago.
  • 0 answers
  • viewed 52 times
Be the first to answer



» More...

Latest Finance Tips by the Dolans

Are Auto-Pilot Funds a Good Choice for You?

Wouldn't it be nice to just set your retirement money aside and forget about it? There's a mutual fund that's designed to do that for you and change your portfolio as you get closer to retirement. Are these a good idea? We definitely have our concerns. Here's our take on whether life cycle funds are right for you?

How to Diagnose Your Medical Bill & Save Money

After a hospital stay or series of doctor's visits, the arrival of the medical bill can be dizzying. Knowing how to read and what to look for in your bill can save you money and grief. Look for these 7 common billing errors.

How to Lower Your Mutual Fund Taxes

Mutual fund taxes are more complicated than those of just about any other investment around, so figuring them out can be extremely tedious. Pay close attention to your paperwork and simplify the process a bit with these five crucial tips to understanding and lowering mutual fund taxes.

6 Ways to Lower Your Tax Bill NOW

With a $400+ billion deficit and more spending plans on the way, you may be wondering where all this money is going to come from. Does "US" ring a bell? Here are 6 easy ways to lower your taxes now in the face of coming tax hikes.

Wine Finds: Enjoy Great Wine without Breaking Your Budget

We Americans certainly do enjoy our wine! Even in this recession, wine sales are going up. BUT the average wine sale is going down as prices drop and people tighten their belts. That's great news for wine lovers like us! Here are our fabulous wine finds for $20 or less.

Best Ways to Audit-Proof Your Tax Return

With tax season rapidly approaching, we want you to feel prepared and assured you won't have the IRS knocking on your door. In other words, don't be afraid to take every tax deduction you're entitled to! Use our three-step audit-proof plan to protect your finances and keep money you deserve.

Top Tax Mistakes to Avoid

A little preparation now can go a long way toward saving you big money on your taxes. Let us help you navigate the tax maze with some tried-and-true tips that we've compiled over the years, including the most common tax mistakes other people make that you'll want to be sure to avoid!
» More...
Powered by
Feed - Subscribe to changes to this Q&A Blog
ADVERTISEMENT
  • Answers
  • Web
Copyright © 2006-2010, Yedda Inc. and respective copyright owners · CC License