Regarding my own situation, i spoke with someone at Citi who said the increase is because of the general problems in the credit markets, not a reflection on me. i have the option to opt out and keep the current rate, but the card will be cancelled upon its expiration date and all the money will be due by then. since i requested a new card, the expiration date is three years ahead, so this could be an option to freeze the current rate. if i don’t opt out, the rate goes to the higher rate (near 20%) by April. i noticed that they had already increased the yearly membership to $50 from $35, were charging for any lateness, and increased charges for cash advances. it would seem that maybe i should opt out, in case other cards start doing the same. it’s not going to help if all credit cards all of a sudden increase their rates by 6%.
I think that all of the credit cards are doing this, I dont personally have any CC, due to filing bankruptcy but my husband has received two letters from two different credit cards that has stated that his interest rate is going up due to the economy but he can call and tell them to keep it as. It is crazy that they are doing this most people do not even look at the small print that has this important info.
My Discover Card went from 11.5 to 14.99 according to Discover for the same reason. I just did a transfer from Discover to Citi to a 2.99 rate for a year. I plan to be finished with this debt by the end of this year. I had 5800 of debt on the card. It cost $176 to transfer it to the Citi Debt Card. So, why not opt out and close the card before three years are up like the day after they get the notice to opt out? It is a DA idea that debts to credit cards are bogusly bad…..and if you have an open card you will most certianly use it…why not commit to DA and stop using it by not just cutting it up but by closing the account entirely….it seems you are wanting to continue to debt and that just did not hit me as right as a DA member….even though I am myself not solvent more than a few days after a screw up with a bill and getting overdue notice in mail.
Hi Bill and all. Thanks, that is exactly what i intend to do. the good thing is that i had just asked for a new card because i had cut up my previous one and i needed a physical one to enter data in the internet, so as to change to receive bills in the mail. this extended the date of expiration, so now i can opt out, remain at the earlier rate and pay it off. i think i will pay it off sooner anyhow.