Citicard increase Interest Rate!

creditcardnewbie

Hello to you all,

I have a Platinum card with Citicard with a £2,000 balance on it. I received a letter from them a few days ago informing that my interest rate will be changing from 16.9% to 31.9%.

They did however offer the option of suspending my account and paying the balance at 16.9% until it is repaid in full – once the balance is paid the account will then be closed.

I decided to choose the option of suspending the account at 16.9% but I am now wondering that suspending my account has had an adverse effect on my credit score or if it will look bad on my report? I have never once missed a single payment with Citicard.

I did apply for cards to transfer the balance but I have made 3 applications in the past 2 months and would not be keen to do many more at this stage.

Any advice would be greatly appreciated.

creditcardnewbie :beer:

pink_princess

Sorry no advice just to join you in your rant,citi have just lowered our interest on our saving rate from 6.6% to 0.5% .Looks like they are getting from all angles doesn t it.

INT1

Wow,

So Egg
Capital One
Now Citi cards are doing this, it does seem a pretty common practise now, there are a few discussions on this, nothing against your credit worthiness ( I say that as mine is fine ) but the companies are blaming it on the risk of lending their monies out. This is due to current climate and other customers not being able to pay back!

97trophy

aldo wrote: »

This is due to current climate and other customers not being able to pay back!

And other customers not wanting to pay back even if they have the money to do so.

INT1

That had crossed my mind when I read threads on here about how to get out of paying back a debt by asking for a copy of the CRA?!

IMO-If you have borrored or spent that money, you should pay it back!

creditcardnewbie

Many thanks to all who replied so far - I was surprised to get a letter from Citi myself as they have always complimented me on how I managed my account when I spoke to them but I guess this is just the way things are in the curent climate.

Does anyone know if suspending my account would have had an adverse effect on my credit score or if it will look bad on my report? I have never once missed a single payment with Citicard.

I did apply for cards to transfer the balance but I have made 3 applications in the past 2 months and would not be keen to do many more at this stage.

Any advice would be greatly appreciated.

:beer:

Paul_Herring

aldo wrote: »

Wow,

So Egg
Capital One
Now Citi cards are doing this

Citi own Egg.

creditcardnewbie wrote: »

Does anyone know if suspending my account would have had an adverse effect on my credit score or if it will look bad on my report? I have never once missed a single payment with Citicard.

It should have no effect since it won't be noted on your credit report as 'suspended.' Only the closure will (once you've paid off the balance.)

Swampmonster

I got the same letter too and I'm absolutley gutted.

Our finances are on a knife edge as it is and it was the last thing we needed.

You have my sympathy. X

creditcardnewbie

Many thanks for your reply Paul,

It is very reassuring to hear that. I was very concerned it might have gone against me.

Thank you,

creditcardnewbie :beer:

somabc

As long the credit card companies give you option to close the account at the current interest rate then good luck to them. If your money is finely balanced then you should not be spending money on a credit card anyway.

Personally I would rather have no credit cards than maintain a balance at 30%+. The sooner people return to normal practice of using their debit card for day to day spending the better.

creditcardnewbie

Swampmonster wrote: »

I got the same letter too and I'm absolutley gutted.

Our finances are on a knife edge as it is and it was the last thing we needed.

You have my sympathy. X

Hi Swamp,

Really sorry to hear that. I was dreading one of these letters coming in my direction as you hear a lot of this happening at the moment but I must admit I am happy enough with the alternative that Citi gave me.

Not sure if it would be worth giving them a call to try and negotiate your own situation?

Good luck with everything - hope you manage to get something sorted.