If you use CITI credit card, check the "notice of change."

[question everything]

I often do not bother to read all the notice of change to the account. I pay the statement in full and on time and I don't take a cash advance unless they offer something like 3.99% or 4.99% for the duration of the loan, since it is cheaper than any Home Equity loan. However, for some reason I did check the notice that came with today's statement. Before I tore down the second page with all kind of "points" etc. I noticed that the APR is 11.99%

And then I started reading the "notice of change" and could not believe it:

Beginning with the billing cycle of Dec. 3, 2008, they are changing the variable APR for purchase, that will equal the U.S. Prime Rate plus 12.99% with a min APR of 18.99%. As of October 1 2008, this purchase APR is 18.99%. Cash advance will be a min. of 21.99%.

I realize that CITI is in the dumps, but if they think that I am not going to watch this account like a hawk, they are grossly underestimating me.

I may start looking at offers of other credit cards, like Capital One, and will close this account.

Thieves!

[OwnedByFerrets]

1. OMG

[LiberalEsto]

2. Can you join a credit union?

We found one that we could join and got their credit card. 9.9%APR.

[question everything]

10. Unfortunately, no.

Many years ago, when one of us was associated with the University in town we could, and really liked them.

[eridani]

11. In many places the general public can join credit unions that were once only for employees--

--of a specific company or members of a specific organization. Check it out. Things may have changed.

[LiberalEsto]

14. You're quite right

That's how we joined one.

Here's a link to a list of Minnesota credit unions for the Original Poster (I checked the profile and saw the poster was from MN)

http://www.creditunionsonline.com/state.php?state=MN

Go to the web site for each one that looks promising and check out the eligibility rules.

[question everything]

15. Wow. There certainly are many of them

will check them out. Thanks.

[Pithy]

3. Run from Crap One

Don't ever do business with Capital One - they are predatory lenders who ratejack at will. Citi is a much better company - I think we will see this from all creditors in the short term during this recession/mini-depression.

A very good resource that I can't recommend enough is www.creditboards.com. Read in the Credit Forum - you will find so much good info. Do a search on Capital One before you even think about doing business with them. They're scary.

[Poll_Blind]

4. Hey do they give a URL for that change? A friend of mine...

...is using Citi- I gave him a warning last month about credit cards but he didn't listen.

Thanks!

PB

[Poll_Blind]

5. Ah, ok, found at least a news story that talks about it...

Citi will cut 10,000 jobs, raise credit-card rates

PB

[question everything]

8. Hmmm.... cannot load the page

will try later.

I thought they are cutting 52,000 jobs.

[asjr]

6. Credit card companies should have

a motto We are here to serve. Open wide and we will screw you royally.

[ixion]

7. Don't look at Capital One, they're one of the worst

orders of magnitude worse than Citibank, in fact.

If you need a card, check out Amex Blue. I think that's one of the best.

[question everything]

9. Yes, I like AMEX Blue

As a matter of fact, this is the only card that we carry balance since we used it last spring for travel and hotel.

However, not every merchant accepts AMEX, so we have a VISA and a MC (one for each of us) for the regulars.

We had a major medical procedure last year that was not covered by insurance. And Capital One offered several plans, with different rates and duration. We selected the 18 months 1.99% and they were very good. Of course, it had only the first major charge that we have been paying down.

This year I have been keeping track of when the statements arrive each month. Even though most provide 3 weeks grace period, it takes about a week to 10 days for us to get the statement. If we go for 10 days vacation we may miss the due date. I've had a case where I just sent them a payment with a note identifying the account, since I knew that by the time we came back it would be too late. Another one of the credit card nefarious acts, to rig late fees. Of course, our checks are deposited within a day or two.

So I have been keeping track on how long it takes to a statement to arrive and Capital One has been the better than Citi or AMEX. But, again, it may be because it was one charge that is being paid down..

But I will stay away from them.

[Mira]

12. Beware of Cap One. Though I have their card, and pay the same way

you do, I read they are at the front of the list of being in danger.

[nichomachus]

13. Watch ALL your credit cards, airlines, car rental etc.

They are all pulling sneaky deals to rip you off. I just got ripped off by Avis for $18 on a deliberately hidden charge -- and their customer service is being totally snotty about it, totally unhelpful.

It's obviously too little to spend a whole lot of time fighting -- which is what they count on -- and a consumer-protection person I talked to says he's getting a lot of complaints about car rental companies.

Meanwhile, you can be sure that if one credit-card company does something, they're all going to do it.

However, be careful, jumping around from credit card to credit card will have a negative impact on your credit score and could actually work against you. Even closing a high-limit card will tank your credit score, since part of that is how much credit you have available. If you drop a card with a $50,000 limit, it can lower your credit score.

And one more thing, you say you pay your card off every month -- as do I. Do you know that, because of that, the credit card companies refer to us as "deadbeats?" They make their money off the outrageous interest payments -- and they hate people like us.

[question everything]

16. Thanks. Yes, I know that we are "deadbeats."

They cannot make money off us by either finance charge or late fees.

And now we are getting offers from Washington Mutual. Washington Mutual? In six months, or so, there will no longer be Washington Mutual. It will be Chase and we already have Chase.

Still, interesting sneaky offer from them: If we transfer a balance from another card - and they are not going to charge a balance transfer fee - we will have 0% finance charges on purchases through the middle of 2010. Sounds inviting, so far, even though, as I say, we pay all charges when the statements arrive.

But here is the sneaky part. The transfered balance will carry a 9.99% charge until June 2010. BUT, and, at least they mentioned it, all payments will go to the lower charge - in this case the "0%" first. Meaning, the balance transferred will just continue to balloon at 9.99%, unless, of course, we send payments in excess of the balance due. And how many people do this?