Citibank tells cardholders to take a hike
(Thanks to BT for the photoshop.)
Terrific: Bailouts for Citibank, rate hikes for their cardholders.
Reader Elizabeth e-mails:
Dear Michelle,
I have been a Citibank cardholder since 2002. I have a better than average credit score and a perfect payment history with Citibank. My current APR on my Citibank credit card is 7.99%. Yesterday, the same day I find out Citibank is receiving $25 billion in bailout cash from our tax dollars, I received a notice with my billing statement stating my APR would nearly double to 14.99%. The notice also said I would be given the chance to opt out of the rate increase and keep my current rate until my card expires, at which point my account would be closed, and I could pay off the balance at my current rate. When I called to opt out, a Citibank representative assured me that I did not have any problems with my account that would have prompted a rate increase and read me a canned message about the “current economic crisis” and how Citibank would otherwise be “unable to keep its doors open” if it doesn’t increase its cost of extending credit. It is my understanding that last week, Citibank told the Wall Street Journal it would be raising APR rates 3% on average and the rate increase would affect about 20% of Citibank cardholders. Sure. My fiance also received the same notice despite his high credit score. When he called Citibank, he was given the same canned speech.
A blogger who had the same experience is calling Citibank out.
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This is why I pay off my credit cards each month
Let’s put them all out of business by not using credit cards.
to big to fail
time for people to close citibank accounts and go to another bank.
This is why my focus is paying off any debt.
I received my notice yesterday. Same thing with me. I am NOT happy, been with Citibank since 1985! Needless to say when I needed to spend some credit yesterday after I got the letter, I did NOT use my Citicard! I am going to shop around immediately and get rid of Citi!
Dear Citibank Cardholders,
Quit your bellyaching and acquiesce in the higher rates. Citibank cannot fail. If they do, we’ll have to rename our new ballpark (we know, the sarcastic among you would suggest “The House that Secretary Paulson Built,” but we’d just ignore you).
Signed,
the New York Mets
*out*
cut up your credit cards and go back to writing checks. you will be amazed at how much less you spend when you actually write a check that you know must be covered. think about it! taking out a loan (which is what you are doing unless you pay the bill in it’s entirety each month) to buy a pizza. or rent a movie. it has never been how much you make, but how much you spend. this is the lesson that we as people and our government must learn. if you make 30k per year and spend 40k, you will be in trouble, the same as if you make 250k but spend 300k.
Anyone have recommendations on a good alternative? American Express looks like they’re lining themselves up for bailout money as well.
They would love it if you didn’t use your card right now. Retaining cash is a priority right now. Returns aren’t.
People and institutions are purchasing treasuries expecting NEGATIVE returns (accounting for purchase/sale commissions).
A debt card. You can’t spend more than you have that way.
I like Dave Ramsey’s approach. Cut up the credit cards and make cash king again. I’ve been debt free (except my mortgage) and credit card free for years and it is so liberating.
Dave Ramsey has always said, use debit cards, not credit cards. That way, one is not spending money that one doesn’t have.
I just can’t convince my wife of that. our cards are with the NRA/First National Bank of Omaha, and Capital One. We always pay them off each month. We’ve never carried a balance.
I’m assuming you mean debit?
But good point. Have one of those… just doesn’t help the credit rating.
I don’t personally keep a balance on a card very often (and then not for long), but it’s good to have one for emergencies.
Pay the cards off each month…we’ve been doing that for years, and it’s definitely worth it.
Otherwise, use cash.
Amex Platinum business card is pretty good because there is no card fee and you can (if you want to) pay in installments. They also offer 5% rebates at certain stores/hotels, etc. But we only use that for our business purposes. It’s not like the Gold Card where you pay a ridiculous fee each year to have the “privilege” of having the card with no spending limits.
The Platinum card does have credit limits…depending on your credit score and past history. Rates are reasonable right now.
What to watch out for IF you carry a balance:
Due date change. Be careful here. When you see these changes coming they will some times change the due date- then you are late paying and they throw you in the penalty interest rate–right at 23% this morning.
Always a good idea-cheap is good.
Exactly. It’s not just Citibank; it’s all of them. I do carry some balances and will struggle with the new APR’s and tripled minimum payments. I was one who always paid more than the minimum; now that won’t happen any longer.
If Congress wants to help the middle class, limiting credit card interest rates would be a huge help.
Hmm
They’re just trying to get all of you ready for your big tax increase. They’re being compassionate.
I had an offer last year from Citibank on my card I haven’t used in years. It was for 1.9% financing on any transferred balance. So I took the offer and when my first payment came due, they charged me 4% of the balance. Luckily, I got another offer from another card for 0%, so I transferred that balance again and am paying 2% on it.
Just this week, I got a letter stating that since I’m not using the Citibank card, they were closing my account.
That’s fine with me, I’ll never do business with Citibank again nor will I buy an American made car.
I’ve been steadily paying off my debt and will be able to pay it off completely next year, just in time to pay higher taxes.
I live on credit cards for a number of reasons, the key being I treat it like an ATM card – if I cannot cover the bill when it comes in I do without the item. Haven’t carried a balance forward in over 15 years. The older I get the more I find I can live until next week, month, or year(s) to buy something. Again, it’s not how much you earn but what you keep that makes you financially independent. I carry Citi but seldom use it anymore because Amex gives back $$ at the end of the year.
Did I stumble on to the Huffington website?
Supply and demand. Supply is tightening so prices go up.
For those of you that have excellent credit, there are still a few cards out there offering 0% for a time. Not sure how long they’ll continue to offer 0%, but if you can get one now, do it. Discover and Washington Mutual still have 0% that expire next year.
I have three cards with balances at 0% interest. Two of them will expire next year and one is with Chase for the life of the balance.
The money you save by not having an interest charge, is well worth it.
I have a goodly amount of Credit Card Debt, and have been concentrating on reducing that debt ASAP. I have cut my expenses in preparation for things like this.
I hope I have enough time to get out before the other shoe drops. Luckily for me, my Credit Score is very high also.
Debit card if you want to live within your means; more convenient than writing a check, since many businesses won’t take checks anymore due to fraud.
Credit cards, if and only if you pay off the balance every month. Don’t simply pay the minimum payment suggested.
If you find yourself surprised each month, time to lock the cards up in a lockbox or time to cut them up. If you have no discipline, then you shouldn’t be using a credit card.
Develop the discipline if you don’t have one, and always have at least one credit card for emergencies, especially if you need to travel.
I’ve been using credit cards for years, and have been using them to consolidate almost all my bill paying – utilities, insurance, etc. The CC companies provide detailed quarterly or year-end statement summaries with details for all your charges. Reports are available in online accounts, so there is not even any need for paper statements cluttering up your mailbox or in basket at home.
Finally, do be attentive to the many, many fees.
So…who is paying for all this “service”? Merchants are charged 1-3% fees for every transaction. This is a LOT of money for the CC companies. Add in the interest CC companies receive from people carrying balances, and you see a LOT MORE money coming into the CC companies.
Subtract from that the fraud, and delinquent accounts, and it is still a LOT of money. That is why you see so many solicitiations in the mail with card offers.
For me, I get the convenience, and a LOT of frequent flier miles. I also get points with AMEX that are useful as cash to pay for travel. It really adds up!
We live in a society where too many people are irresponsible. That is what we have to worry about.
Mike
Has anyone but me noticed that all the bail-outs are going to people that have built huge neighborhood offices all over the country? Every insurance company and bank have one in every shopping center/mall/strip mall. Their real estate holdings is one of their problems but no one has even ventured to ask they sell some of them off or close them. Keep the ATM’s going and handy convenient locations but I’m sick of seeing perfectly good land being torn up and paved over holding the same tenants as a strip mall within walking distance.
Jail time for them and their Democrat friends.
I hope to soon have a horrible credit score so that Democrats in Congress will force the banks to make me loans that Barack Obama will than pay back for me. Why did I not think of this before? I will be obligated to vote democrat from now on though.
You might want to consider doing your personal banking, including your credit card account, at a Federal Credit Union. These not-for-profit organizations return their profits to the customers in the form of lower interest rates.
I’m a capitalist, but that doesn’t mean I need to contribute to the salaries of executives making millons.
m2inor/Mike #23
Sage advice – I use credit cards because of the fraud involving checks and ATM cards with identity theft. Plus, virtually any merchant has to take back merchandise if using a card, even those that post no return/limited policies. My fav is Amex because of their perks. Sadly, they do spank the merchants harder on fees.
Credit cards are for those who must have instant gratification. That would be you liberals.
I didn’t read every comment so perhaps someone already pointed this out, but it seems to me Citibank is getting rid of it’s least profitable customers. People who pay on time, don’t carry a balance (or only a small balance) have high credit scores simply don’t make Citibank much money. They’re getting rid of the low profit customers in favor of the people with worse credit since they make much more money on them.
Buzz
I happen to have a Citi credit card. I pay my balance in full each month and I have to say, they were very good to me this week.
Their regular account reminder email bounced and I forgot to schedule my e-payment by the due date and I was charged a rather large finance fee and late fee. I called and paid in full immediately and they wiped both charges off.
I still have objections with the bailouts, but just wanted to report my experience.
Time to double the rate of all loans to Citibank. Hold the management team personally responsible.
buzz #30 – one of the cell phone companys did that with customers who carried their phones and either moved to another state or used it for business with huge minute use. Long haul truckers all over the place received notice they needed to find another provider….they did. The credit card industry is about to find out they need those that pay off balances every month to maintain a positive cash flow.
Not all debit cards offer the same protections as credit cards, especially if you pay some bills with autopay, so be careful. I keep one credit card for use with internet shopping.
Also, Amex Platinum is not that great of a deal either especially if you run up to your limit (and pay it off each month)as that can lower your score. Also, if you have a mortgage with ING the Amex has been lowering limits. Amex has an unusual number of defualts from people with Amex cards and ING mortgages.
BTW, if what I said is correct, doesn’t that point out just how asinine the credit card business model really is? The worse your credit, the better customer you are.
Buzz
The best way to get even with CitiBank is to pay your credit card bill in full before it is due. It is not that hard to do if you don’t make extravagent purchases. By paying your bill on time, you deprive Citibank of its huge interest payments and CitiBank hates that more than the devil hates holy water. Citibank, for all its high fallutin chatter, wants people to be late in making payments. That is how CitiBank thrives. My slogan is “Pay your credit card bill before it is due, deprive Citibank of its pound of flesh.
24Klady,
Yes but it’s going to be painful for them in the near term. They’ve structured their credit card business around making lots of money off of over limit fees, late charges, high interest charges etc…
Buzz
The banking crisis effects main street. Here’s how this one works:
Citibank, like all banks, securitizes and sells credit card debt. Otherwise they would not be able to support so much consumer debt. In order to sell credit card debt, they need to charge enough interest to attract buyers. But bank failures and potential bank failures are making credit markets stop operating — buyers are refusing to buy 7% credit card debt.
The consumer credit market is competitive. Citi cannot charge interest rates easily beaten by other banks. They charge because they have to.
You can insist on “pure capitalism” without bank bailouts, but be prepared to go without credit cards, mortages, and small business.
Credit card rates were significantly lower 15 years ago before the wave of mergers and acquisitions hit the industry. Since mergers and acquisitions, currently accelerating under the guise of the bailout, make a mockery of the self-regulating protections of a free market, I’m with Vickisoup in favoring capping credit card rates. Besides, these bankers have no business issuing plastic to deadbeats in the first place.
lgm, for the second time. I agree with you for the most part. Is someone else using your login?
Citibank is now a government welfare recipient. They are charging private citizens who may also be welfare recipients as high as 29% on their credit cards.
The outcry from the Office Of The President-Elect and the MSM will be
overwhelmingnonexistent.Citigroup is priming itself to be broken up and sold in parts. My guess is the credit card operations will be sold to American Express.
To PAUL REVERE… You don’t hurt them by not using CREDIT CARDS… Pay off your card every month… Result: you work with their money for 30-45 days, interest free… SWEET!!! Plus, in some areas of purchase I get anywhere fro 1%, 2% and up to 5% cash back discounts on my purchase… DOUBLE SWEET!!!
Obama may demand a sub-prime for low income credit card holders.
I always paid my balance and about a dozen or so times had my account frozen because it came up on the fraud alert. Only problem was that all the purchases were mine. I lowered my overall credit limit and that did stop the account from freezing without warning. I don’t have a citibank card anymore.
Vicki’s right. We used to have usury laws that capped interest at 18% maximum.
Ususry laws are gone. Bankruptcy laws no longer clean the slate. Is debtor’s prison next?
Those aren’t the same as bailouts. They’re some of the founding reasons for this country.
American Express with interest? I’ll have to buzz over and see what is up. I have carried an American Express card for years but there was no carry- balance due in full each month-no spending limits.
Yes, I was just there-they offer about 10 cards! I see they do have payment options. Somehow I did not think they would. Maybe I’ll get a Citi-Card and not pay it?
What are you talking about?
Frankly, the ONLY reason I use credit cards is to get the air miles (which I do use) or the 1-1/2% rebate on all my purchases (my Costco Amex card), which adds up big since we also put our business purchases on there. And I NEVER spread the payments out over time. Like the first commenter, I pay them off each month.
NEVER use a credit card to buy something you couldn’t afford to write a check for today. I heard credit cards referred to as a ‘middle-class scam’. I think that is right. So stop playing their game and either pay cash for your purchases or pay it off every month–which means no, don’t buy something you really can’t afford.
Here’s something I learned that makes me even question using credit cards at all sometimes—-Dunn & Bradstreet did a study that showed that people who use credit cards spend anywhere from 12-18% more than they would have if they’d paid cash for those same purchases. Makes the 1 to 1-1/2% rebates look not so smart, after all.
And I must say, btw, I don’t have much sympathy for credit card companies who–as Dave Ramsey puts it—give credit cards to “dogs and dead people.” It’s pretty much true, so when they do something that stupid, they don’t deserve any bailouts if people stop paying on those cards. That’s one bailout I have no tolerance for, whatsoever. Unlike the CRA, it’s not like the feds FORCED Citibank to give credit cards to anyone breathing.
I get offers in the mail on at least a weekly basis from all sorts of companies willing to extend extremely low or zero interest rates for up to a year if I transfer balances. I pay my cards off every month, so this isn’t an issue for me, but if I were carrying a balance I would switch in a heartbeat and use the low teaser rate to help pay down the principle.
These offers have been arriving for years, and haven’t slowed down even a little during the current “crisis.” Even if you don’t pay the whole balance off before the tease expires, there’s a very good chance you’ll receive another off just like it from another company before the higher rates kick in.
Clue: the only way this is beneficial, of course, is if you actually pay your balance down. If you use the lower interest rate (and lower monthly payment it entails) to simply rack up more credit, you need to sit down and take a long, hard look at reality and your relationship with it.
There is something very wrong with an economy where paying down personal debt is considered bad for the country, and where piling up mountains of personal debt is considered a desirable thing.
Frankly, that seems extremely low. For the average schlub who sends in the minimum payment every month, it will take five to ten YEARS to pay off a significant balance. By that time, at the interest rates charged, they will have spent three to five TIMES what the original purchase cost.
They will also need to maintain a number of card owners to be attractive to those buyers. If enough people change their cards, a higher rate won’t save them. There’s a balancing game here and it’s not just towards the buyers of the securities.
Citi is within its right to raise their rates after receiving a government bailout. We, as consumers, are within our right to take our business elsewhere. As you stated, it’s a very competitive market.
I got kind of the same treatment from Chase with respect to my visa card …I went and paid it off and killed the account this past July 5th.
1 card, paid in full every month, no interest…
The concept of debtors prison. That’s the reason we have bankruptcy and why Congress has control of bankruptcy in Article I Section 8.
Of course, the founding fathers never figured the Congress would be in the pockets of the banking industry.
Amex green cards have low fees, and you have to pay off the balance so you are not going into debt. Yeah, Amex has it’s hand out too. One thing about them is they stand behind you. If someone steals from your debit card it might be harder to get your money back.
Oh yeah, pay off all your cards as fast as you can if you haven’t! Debt only works during inflationary times – during deflation, which this looks like, debt will kill you.
You can also get zero % interest for 6 months, buy a 6 month CD with THEIR money and collect interest with THEIR money.
I got a letter informing they’re raising my APR by 6% this weekend. I had no idea what was going on and it had me very stressed.
Maybe he’s been playing the devil’s advocate all this time.
I can’t remember when he was right the first time, but I do remember he was spot on. I had just chalked it up to a blind squirrel finding an acorn, but now…
To #6 re: The New York Mets
OUCH!!! That one hurt! 2 years in a row, I’ve had to suffer through a September collapse. This year there was an excuse because Billy Wagner was out for the season. But still………….don’t remind me.
Oh and I’m hoping for a change in the name of the new ballpark too.
Debit card – check
Checks – check
Cash – check
Credit cards – shredded
Lower credit score never hurt me. I bought my last three cars with no money down and a great rate. Don’t buy the hype you NEDD a credit card or you will be hammered by higher interest loans. One only needs to shop around to find the deal they really want. Cars are an easy buy these days. Stores will take cash same as a debit card.
My 20,000 cents (adjusted for inflation and the devalued dollar).
Anyone know if merchants are hit for fees for debit card transactions?
I suspect the Dunn & Bradstreet study was more affected by people making more purchases if they were using credit than cash or check.
My comment addressed the interest rate increase by Citi. How does this response relate to that?
I just got an offer of 0% for a year and 7.90%thereafter from US Bank ( I do bank with them) phone 888-777-4444 usbank.com/myoffer (Visa card)
Vicki was saying that it should be illegal to charge such a high rate of interest.
You stated that it was because of supply and demand. I was stating that it used to be illegal.
I took your “take it to Huffpo” comment to mean that you are against usury laws.
If that is not the case, then I apologize.
Debt is dumb; Ditch the credit cards; Did so many years ago; Check out Dave Ramsey and stop being a slave to these lending institutions; It’s great to have 100% control over your hard earned money and you will never, ever get there while mired in debt; It is doable; Don’t live like the government.
I see, but it seems as if Vicki was really asking for rate regulation (an important distinction exists).
I’m sure you know that certain usury restrictions still exist. I know several companies which are still forced to navigate to avoid such restrictions.
I am completely against all non-retail usury laws, but I’m comfortable with current practices with respect to the retail markets (which I would enjoy discussing in detail with you if you’re game).
Yeah, that makes a lot of sense…raise the interest rates, put more people into default, resulting in more accounts they wind up writing off and get NO money out of…WTF?
GAWD NO! DO NOT have anything to do with USeless Bank under any circumstances! I finally paid off the cards I had with them and closed all my US Bank accounts last year. They are about as screwed-up an outfit as there is!!!
I myself use a credit union…better interest rates on loans and savings…not to mention it’s generally local people running them.
The problem is people using CREDIT cards as a line of credit instead of using them as CHARGE cards like the traditional American Express card which had to be paid off at the end of the month. Unless it’s an extraordinary emergency circumstance (like your transmission going out), if you can’t afford to pay cash on the barrel head, DON’T FREAKING BUY IT!!!
I use my credit cards as nothing more than an electronic checkbook. Rather than writing a slew of paper checks each month and paying a fortune in postage, I have nearly all my bills automatically charged to my cards and then I go online and electronically transfer my payments in full. Since my cards also pay me a percentage of my charges back – e.g. AmEx TrueEarnings thru Costco gives 3% back on gas purchases – I’m actually making a little money on purchases I was going to make anyway.
We can discuss them at length if you’d like, but I’m afraid it would about as boring a conversation as you’ll ever find.
My take is that the consumer protections that used to exist have been eroded to the benefit of companies that now require a bailout despite having seen beneficial regulations over the years. Some of those protections we no longer enjoy are:
1. Usury. 18% was the maximum amount allowed. When inflation kicked into high gear, that number was raised and never came back down despite the fact that the Prime Rate did.
2. Bankruptcy Laws. Congress recently enacted a change that forces people into repayment programs rather than erasing their debt.
3. Right to rescind. At one point, you had 7 days to rescind anything you signed. That has slowly been worn away to nothing in some cases, only 3 days in others.
These regulations were common sense and in no way should be a substitute for personal responsibility. Some people abused the system (especially in the case of bankruptcy) and changes were made to account for these bad apples. The problem is that these changes now affect a larger number of people, who will clamor for Congress to do something, enabling the nanny state even further.
If you have a Citibank card or loan, you should cancel it ASAP anyway, just on principal.
Go to a credit union or a local small bank and tell them you want to transfer your balance to an organization that does not need government assistance to survive.
Oh, good friggin’ grief! From the DoD news page.
Everyone should use their local credit unions. They do prudent lending, they aren’t lined up for bailouts. They are non profit, so they are in business to service the members, who eesentially are defacto owners. I have my mortgage with my local credit union. THey hold the paper, service the loan, everything. I am not dealing with some call center in India when I call them. Everyone can join a local credit union. Check them out.
Karenhasfreedom #73 – great point on credit unions. The other is that you won’t find your mortgage sold off if you deal with a locally owned bank. After years of putting up with global banks and the resulting mistakes, strange charges, and rude personnel, I sought out and found one owned locally. Haven’t had a whiff of trouble since, plus their coffee and cookies are welcomed when pressed for time
And, bankrate.com and other sites will give you the rating on banks. Good to know which ones are still solvent.
I dont understand why everyone is a slave to a credit score. I couldnt care less what mine is.
The difference in a good score in a bad score would probably affect my interest rates less than I would tip one Hooters waitress for one meal.
It sucks to have no debt… I’ve really got to step it up…
Thats an interesting philosophy there R.S., why dont you clarify that for us a little bit there hotshot, all brave and all wit cho no debt
You might be surprised. Credit spreads have increased recently. Although honestly, I haven’t been tracking trends in Hooters tips – maybe they’ve kept pace.
I haven’t received notice of this maybe they are targeting late payers or missed payments.
I have 18K of credit w/citi and only pay 8.9% so is the poster telling the truth about their payment history?
All credit cards do random checks to see your credit if yous crew up on another credit payment they raise your rates It’s called RISK!
# 60 I doubt highly you bought cars with a low credit score without a higher rate attached!
Stop your crying! I love MM but, I have doubts about the story
Uhm… seems to me that since Citi is taking all our money that their customers should get a reduced rate!
In fact, with all these trillions of public dollars funding all these banks, you’d think that they would be required to make very low interest loans and credit cards to any taxpayer.
# 14 there is a $395 card fee for a plat card from AMEX so be honest
Hmm. I’m a Citibank card holder but haven’t got my notice yet. Guess it won’t be long…..
Why should other tax payers (non Citi customers) have to fund your reduced rates?
81 – Encouraging businesses to give loans to people whether or not they could pay them back is sort of how we got into this mess in the first place.
This whole mess was the mania of banks loaning money and sheeple going into debt…buy crap you don’t need and could do without. Then when anything went wrong sheeple found themselves buying gas, food, medicine, …necessities…. and racked out the cards. One more hiccup and they’re busted and so is the bank. the whole thing’s stupid and should never have happened. Ultimately it is the bank that made the mistake…it was THEIR money…. and we all are paying for it with our tax money.
Let the damned banks fail.
The government could capitalize, on a loan basis, solvent banks to acquire the debts at a discount and business could go on. Instead the insiders at the banks are being saved by the finest Congress they could buy. It is just sick.
We’ve been cash only with a debit card since my lengthy unemployment during the dot.com bust. I recommend it for everyone.
It’s a bit inconvenient for travel, you have to pay up front, but not having the sword of credit card payments over our heads is worth it.
Well since the oil-rich Saudi Sheick Alawaad(sp) owns Citigroup, seems we are now bailing out the saudi’s with US tax dollars. Isn’t that special?
We’ve always heard that people should “save and invest”… that economic growth depended on it.
A few years ago, I was having a discussion about this and my position was that if people are frugal and save then business wouldn’t have any need to expand and grow if consumption remained flat.
The economy depends on consumption – the more, the better. I said that if people stopped spending with credit, the malls and what-not would dry up. That may or may not be a good thing (not here to debate that) but it’s the way things are.
I didn’t think I’d actually see it happen… still hoping I don’t.
#20: Corkie – I think a case can be made to freeze or cap interest rates and service charges on accounts that are current (especially when the banks are lining up to pick our pockets).
When someone is on the edge (like more and more people), the last thing one needs is to have the banks piling on to make your situation worse. It doesn’t make business sense to me to hinder a debtor’s ability to repay a debt.
Oh yeahhhh!
Let the Muslims have them. They aren’t allowed to charge interest.
Wait, then why did these Islamic pigs invest in the first place….?
Based on the CreditMattersBlog, Citibank is doubling its prices. How long would Walmart stay in business if it did that? Oh wait…nevermind, Paulson would just give them a trillion dollars.
From the Forum: “leverage their balance sheets to disastrous proportions and loosening regulations” … just a reminder that all deregulation is not a good thing because money is like a pretty girl and greedy boys will do stupid things to for a short-term gain at the expense of a long-term relationship (the girl/boy thing could be reversed…this is not a sexist statement).
I have personally seen 100% financed at 3.95% for 60 months for a person with a low 600 score.
That was my understanding. When you use a credit card, it is easy to come home with more “stuff” than you would if you used a debit card or cash — even if you pay the cc off every month. Putting $80 on a cc wouldn’t make most people think twice. Opening your wallet and pulling out 4 twenties just feels like you are spending more.
We pay off the cc every month. And my solution to the putting-more-stuff-on-the-cc effect is to avoid stores whenever possible, and shop with a list whenever not possible. Also avoid TV (it exists to make you dissatisfied so you will be susceptible to advertisers) and magazines (same purpose).
As for the interest rate jumps, ironic since interest rates are so low right now. (As evidenced by the pitiful amount I’m getting on my savings account.)
CITI is the new gov’t travel card (GTC) that goes in effect Nov 29th after several years of Bank of America. I wonder if we’ll still get the 0% interest when they get their bailout money?
ammo john,
My new gov’t travel card is with JPMorgan Chase. My old card (that expires on the 29th) was from Citibank. Maybe the system allows for the use of different vendors by different agencies.
A socialist can make such a case rather well.
This is timely. I got a letter from Washington Mutual closing my account for non-use. I really didn’t use the account but would log on from time to time to check my FICA score (which the acct displayed for me!) This will hurt my credit score because my debt/avail credit ration will go way up because I will lose $15,000 in available credit. Kind of a bummer, and they gave me NO warning, otherwise I would have charged something on it!