advice on CITI Credit Card

niknax2955

Sounds strange but I have several credit cards of which I am paying back, but my CITI card is making me struggle. I have called them today to request if they would reduce my interest rate, currently at 24.9% and they have said no. They are going to get account department to call me as I have informed them that I am struggling to pay the montly amount. I have suspended the card, so no further spending. I want to pay them back but at a reduced rate.

Does anyone know what they may suggest? If so will this look bad on my credit report?

thanks

DarkConvict

So long as you meet the minimum payments, it won't affect the credit file.

They profit from interest so do not like to reduce it, sometimes companies do offer temporary reductions. Most reductions come only if you have defaulted and can only afford token payments. In which case it would damage your credit file.
If they attempt to increase the interest you can stop that by suspending the account.

thewad

MBNA suspended my account and then stuck the interest up to 32%.
Is that legal??

John

pepe2008

thewad wrote: »

MBNA suspended my account and then stuck the interest up to 32%.
Is that legal??

John

Unfortunately they will charge just what they want. I think that they do this in the hope that you will take your debt elsewhere before defaulting. Who knows?

There are arguments about 'responsible attitude to helping a Customer resolve their difficulties' but its hard to make a case.

DarkConvict

Rate jacking is allowed, but you can object and stop it, read this - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

Reason why the rate has gone up is because you appear to be a bigger risk, its a vicious circle they charge to encourage full payment, but if you cant do that it is only making it harder to pay it off. They look after there interests not yours, if you fail to pay then they just sell the debt off to a debt collection agency.