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posted: Nov. 20, 2009 @ 2:43p
aeiouy
Senior Member - 1K
posted: Nov. 20, 2009 @ 2:54p
That's the case for Lindsey Pappas, a 25-year-old public relations professional in San Francisco. She received a letter from Citi Wednesday that her interest rate was being hiked to 19.99 percent, up from 14.99 percent.
If she spends $750 a month, however, she can get a refund for part of the higher interest rate charges.
The problem is that Pappas is trying to pay off a $5,000 balance on the card, so she tries not to charge any money on it.
"I'm just going to have to deal with the higher interest rate. Spending that much would be irresponsible," she said.
I have received such a letter. I have citi dividend platinum card and I have maxed $300 Cash Back reward on 2008 and 2009 using the dollar coin deal. Citi wanted to me switch to other type of reward cards 3 times but I rejected such offers.
I got hit by 27.99% interest rate or I have to spend $1500/month to keep the current rate - 14.99%.
I pay the balance in full so I do not care. If the Dollar coin deal comes back, I'm going to loot another $300 as fast as I can from citi.
IAskStupidQuestions
Handsome Member
posted: Nov. 20, 2009 @ 8:21p
I received the letter for my Drivers Edge card (or was it American Airlines card I can't remember) and posted about it here. Why did I receive so much red for pointed out a great deal?
Citi did something diffrent on my Diamond Pref Mastercard. They increased the purchase APR to 20.99%. I have a large balance on it at a 1.99% for life APR and only a few dollars on purchases. Along with the increase I was given the option to opt out and continue using my card with its current terms until the cards expitration.
GroveStreetOG
Senior Member
posted: Nov. 21, 2009 @ 9:04a
Don't opt out if you have to make purchases to keep the 1.99% rate. If you opt out, you can't use the card anymore, right? So you wouldn't be able to make your required purchases. As for them increasing the purchase rate, what I do is, I just buy a banana for my required purchases. No matter how high they jack up the interest rate, it's hard for them to make any money on the cost of 1 banana per month.
rubytue
New Member
posted: Nov. 21, 2009 @ 9:35a
Diamond Preferred Rewards MasterCard here. Raised us to 19.99% (prime + 13.99%) with a 10% interest rate rebate if we spend $1500/month. $1500 is well within our usual spending, and we pay it in full, so it really won't affect us - other than pissing us off.
Interesting quote "Start earning interest back in December and January, and you will see the full credit on your statement no later than February 2010."
Other tidbit: Cash advance APR: prime + 21.99 = 25.24% Cash advance transaction fee: 5% but not less than $10 "This fee is a FINANCE CHARGE." Balance transfer transaction fee = 5% "This fee is a FINANCE CHARGE."
I got the same letter for my AAdvantage card. From 9.99 to 20.99 unless I spent .. I can't remember how much.
Fortunately, I just about have that sucker paid off. It's my oldest credit line by several years so I'm not going to close it, but I won't be using it much, that's for sure.
GroveStreetOG said: Don't opt out if you have to make purchases to keep the 1.99% rate. If you opt out, you can't use the card anymore, right? So you wouldn't be able to make your required purchases. As for them increasing the purchase rate, what I do is, I just buy a banana for my required purchases. No matter how high they jack up the interest rate, it's hard for them to make any money on the cost of 1 banana per month.You did not read the article. The amount needed to be spent in the article is in the hundreds of dollars for most folks. It varies by the individual.
I got one for my Citi Diamond Preferred Rewards card...jacking my rate to 19.99% unless I spend like $1k or something in balance transfers. I don't really use the card that much so I'm not too worried about it...although I've given them no reason to jack up my rate.
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