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 to 29.99%.
I am always on time for all my payments, always been current with all bills, etc. There is not a blemish on my credit report (Citi said I had too high of a revolving credit balance, which is interesting, because all I have outstanding is a 4 year same as cash furniture deal, $2800, a 3 year same as cash Best Buy deal, $700, and a 6 month same as cash deal, $440). When asked more, I was told, we needed to raise interest rates so we did not lose so much money. My reply was, 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!!
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