CitiBank Credit Card Pitfall

EmyrB

I have followed much of the advice given here on this site and I must say I am grateful for it. But I have a credit card balance that I am tired of chasing the 0% on. So I took Martin's advice and I signed up to City Bank's 5.8% interest for the life of the balance (or so I thought).

After entering my details I got to a screen which said that I had been accepted, but it didn't tell me at what rate I had been accepted.

A few days later I received my PIN, then my card and about 3 days after this I received a letter which said that I had a £500 credit limit and my interest rate would be 28.9%!!!!!!!!!! This is more than a store card!!!!!!

I have been credit card hoping for a while now and this is the first time ever where after I have been accepted I haven't been told what my credit limit is or what APR I will be charged.

Stay clear of this card and martin, remove this scam of a credit card from your advice. Personally I would rather use Capital One's than this.

MSE_Martin

Hi

Sadly this is becoming more common - especially with US banks such as Capital One and Citibank. It means their card provision is a rate for risk; its an invidious practice as you get a card even if its inappropriate. In my view it shouldnt be allowed, but it is, and its very common.

The problem isn't the citibank card per-se but that you weren't given that card, you were given a different one.

However as this is a widespread practice; and most products are credit scored I can't justify getting rid of a card which is cheapest on the market for those who accept it.

Its a factor of the way the market works. However I will add a warnign about this facet of the card.

Martin

zultan

Strangely, I said the same thing happen to me with Citibank - I say strangely as I consider myself to be reasonably credit worthy, only a couple of missed credit card payments (not from consecutive months) dating back nearly 5 years, not over extended on my mortgage
, no bank loans or car finance. I cancelled the Citibank card as soon as I received it and applied for the LoB Barclaycard and was accepted - with a reasonable credit limit. Credit scoring seems to be a bit of a black art.

jpwjpw

I got given 19.9% instead of the 16.9% they advertised. However, i'm only using the 5.8% offer so why does it matter? Luckily for me they did give me a bigger credit limit.

blisteringblue

I just went for this too (notice the 5.8% is not mentioned on their website anymore) as the zero BT fee was a bonus as 5.8% LOB is quite good if you can get it.

Got accepted right away and card arrived this morning. No mention of any limits or rates until then. It did say the montly rate and BT rate were both 15.8% and as I had done an instant BT of around 5k I thought :mad: would mean getting it all transferred back after refusing the card. Anyway I rang customer services just to check and they did confirm that the amounts I had transferred were at 5.8% for the life of the debt !! Double checked and also set up DD at the same time. So even though it's not on the initial paperwork maybe ring up to check?