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My credit card rate was increased

the whole balance is affected. Its by citibank. Is there anything anyone knows on whether this is allowed?

Answer Question
 
babygirl821

Asked by babygirl821 at 7:32 AM on Feb. 4, 2009 in Money & Work

Level 1 (2 Credits)
Answers (8)
  • Yep, it's legal. Sorry to tell you. This is why Americans are in trouble...they live by the credit card. Get it paid off as soon as you can. Good luck.
    Anonymous

    Answer by Anonymous at 8:02 AM on Feb. 4, 2009

  • Yep, they did this to me a couple of months ago and I had NEVER missed a payment, so I paid it off, which is what you should do too, if you can. If your credit is really good, then I would also think about getting a card through another company and cancelling the Citibank card.
    Anonymous

    Answer by Anonymous at 8:27 AM on Feb. 4, 2009

  • It is legal. The best you can do is call and argue it. I tried that. It did no good so I paid off the balance ASAP and then cancelled the account. Sorry, I know it sucks!
    TurksMommy

    Answer by TurksMommy at 8:45 AM on Feb. 4, 2009

  • Most all of them are doing this. Amex did it to me and I never missed a payment on that, or anything of mine! They said it was due to the economy. I paid it off and closed it.
    Anonymous

    Answer by Anonymous at 8:45 AM on Feb. 4, 2009

  • Did you have a promotional interest rate that has now ended? Regardless of whether you made timely payments or not--it's just like the Adjustable Rate Mortgages that so many people signed and a year or so later are now defaulting on! You gotta read the fine print!

    Find another credit card company--even if it offers a 6 month promo interest rate, transfer your balance to that company, pay off as much as possible during the promo period. When you transfer your balance, call citibank, request that your account be CLOSED, and have them send you a letter (for your records) stating your account is closed.

    Even if you pay off your balance, and NEVER use the card again, your credit report will show "available credit limits" which can actually LOWER your credit score--yes, even with $0.00 balances!!! You have to actually CLOSE the accounts!
    LoriKeet

    Answer by LoriKeet at 9:05 AM on Feb. 4, 2009

  • you can actually call the company and ask they not raise your limit. I started out with my Discover card at 2500. In 1993. I finally called and said DO NOT RAISE MY LIMIT! They haven't since then.
    pagirl71

    Answer by pagirl71 at 10:48 AM on Feb. 4, 2009

  • Call them first and ask why it was raised. Some are sending letters stating if you don't call we are going to raise your interest. If there are any strings to getting it lowered back don't accept it. Also throw the bailout in Citi face often. They received the biggest bailout actually 2 bail outs.

    Also just get out of the card ASAP. Credit card companies are just snakes and if you play with them long enough they will bite.
    partiesbyjan

    Answer by partiesbyjan at 1:07 PM on Feb. 4, 2009

  • All were great and smart answers. Yes my initial thought is pay it off asap. I will call them anyway. I just thought they weren't allowed to increase to "existing" balance per the talk I've been hearing in Congress. Well also, some of you say to cancel, cause the limit, which is high, affects my score, but I heard NOT to cancel as your credit available is good to the score. I could decrease the limit though, good idea.
    babygirl821

    Answer by babygirl821 at 8:22 PM on Feb. 4, 2009

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