I recently had an interesting experience with Citibank. I have been a card holder with them for well over 10 years. I seldom carry a balance (I do not carry a balance on any credit card unless it is a same-as-cash deal). That is probably why I did not notice when they jacked my rate up to 29.99%.
I am always on time for all my payments and always current with all bills. There is not a blemish on my credit report. Citi said I had too high a revolving credit balance, which is interesting, because all I have outstanding is a 4-year same-as-cash furniture deal ($2,800), a 3-year same-as-cash Best Buy deal ($700), and a 6-month same-as-cash deal ($440). When I asked more, I was told they needed to raise interest rates so they did not lose so much money. My reply was that since I am canceling, 30% of nothing is nothing, which is less than the usage fee you get when I make a transaction.
Perhaps Citibank is not the only one to do this, but I know I will never hold another Citi card again as long as I live. If this is how they treat a good customer with 10 years of clean history, I would really hate to see how they treat someone who was a bad customer.
30%!!! Geez, it is almost cheaper to go to a payday loan office!
0 comments