To lower rates, Citi customers must spend

[deminks]

http://www.msnbc.msn.com/id/34049970/ns/business-personal_finance/

NEW YORK - For Citibank credit card holders, there is one way to escape the bank's rate hikes currently under way: Meet a monthly spending requirement.

Those who meet the spending minimum — in some cases $750 a month — will be able to get a rebate on their total financing charges for that month. The rebate could cover some or all of the interest rate hike. Customers also need to make payments on time to qualify for the rebate.

Without giving specifics, Citi said the monthly spending requirements and interest rate hikes will vary depending on the cardholder's credit history.

(snip)

That's the case for Lindsey Pappas, a 25-year-old public relations professional in San Francisco. She received a letter from Citi Wednesday that her interest rate was being hiked to 19.99 percent, up from 14.99 percent.

If she spends $750 a month, however, she can get a refund for part of the higher interest rate charges.

(end snip)

Yup, I got a similar letter. "In order to continue offering credit to our customers..."

[JuniperLea]

1. And if you pay off the card...

You take a hit on your credit score... and if you cancel said card, you take another.

The bastards are on my last nerve.

[Gormy Cuss]

7. Paying off the card does not lower your credit score.

Cancelling the card will affect the score however.

[JuniperLea]

11. I mispoke...

You are correct, paying it off doesn't lower your credit score, but with many cards, it does put you in a position to pay yearly fees for the privilege of carrying a zero balance. So you either pay the fees, or cancel the card... they have you by the dangley bits either way.

[Statistical]

13. Paying off and leaving open card will give you a nice boost. n/t

[JuniperLea]

14. Except they will charge you a users fee...

To keep the account open, with a zero balance.

[Vinnie From Indy]

2. LOL!

I find it hard to believe that Citi could ever hope to re-capture the millions of people they have screwed this last year by raising rates as high as 29.99% on some cardholders. Do they really think that people will ever forget being the victim of Citi's mobster-like loansharking tactics.

And, as always, Congress does NOTHING to address the raping and pillaging being done by the credit card companies. It is a disgrace and an anchor on any movement towards recovery.

[jimshoes]

3. That's bullshit,

They are going to raise them no matter what you do. I know. First hand.

[AllentownJake]

4. Thank GAWD IT PASSSED!!1!11!

That is all I have to say.

[jpak]

10. and your alternative is?

nothing but nay-saying

I believe there is a Party of No ya know

yup!

[valerief]

5. I got one raising me to 23.99%. Just makes me not want to use it at all. nt

[deminks]

6. Kick once for the morning outrage.

:kick:

[Taitertots]

8. They are just suckering people into getting huge balances

So they can jack the rates up.

[formercia]

12. They get their money either way.

$750 per month is a guaranteed income for them, either balance interest or transaction fees.

[myrna minx]

9. I received this letter on Monday.

:grr: I can't wait to be finished with them forever. One year left to go and I can dump them for good.