Monroe Chat

by **kolby** » Wed, 01 Jul 2009 10:21:34 GMT

Citi raises rates on millions of credit cards: report
Wed Jul 1, 2:07 am ET

(Reuters) – Citigroup Inc has increased interest rates on up to 15 million U.S. credit card accounts just months before curbs on such rises come into effect, the Financial Times reported citing people close to the situation.

Citigroup had upped rates on 13 million to 15 million credit cards it co-brands with retailers such as Sears, the paper said.

In a statement, Citigroup said "We have adjusted pricing and card terms for some customers as part of our regular account reviews. This is an ongoing process to ensure we offer terms, interest rates, credit lines and products based on individual needs and risk profiles."

"These changes also reflect the dramatically higher cost of doing business in our industry as we work to preserve the broad availability of credit," Citigroup told the paper.

Citigroup could not be immediately reached for a comment by Reuters.

(Reporting by Hezron Selvi in Bangalore)

by **kolby** » Wed, 01 Jul 2009 10:23:57 GMT

dramatically higher cost of doing business in our industry

Record low interest rates from the feds. HA!!! How about the stupidity to loan money to people that obviously could not afford it. Of which has been written off and is not costing the banks any money.

They are raising rates, prior to when the new credit card legislation takes effect. Expect other credit card companies to do the exact same thing.

by **HRHPatey** » Wed, 01 Jul 2009 10:39:31 GMT

Exactly!! that's why it's so darned frustrating......

We are working diligently to become 'financially free,' inclusive of Car and Mortgage payments, however, with each of these blood sucking companies continuously raising rates, it's three steps forward and four back

We have had interest rates bumped up, yet, have never missed a payment, been late or paid the minimum (always more) Our two major cards are paid off month end, no bills have been late etc etc.... there is no justification for such hikes - makes my blood boil!!!!

by **Tracy** » Wed, 01 Jul 2009 11:49:16 GMT

Davd Ramsey

read his work and follow his steps.

if you have a paid off card and they raise your rate call them and ask them to lower it. If they do not close the account and tell them why.

their business is consumer driven if you do not use the card they do not make money ..

by **HRHPatey** » Wed, 01 Jul 2009 12:02:28 GMT

We are Dave Ramsey followers - have been for a while :wink:

Diligence and conversations DO PAY off !

by **Tracy** » Wed, 01 Jul 2009 13:11:54 GMT

yes it does ... the three season room we put on the house is paid for before they finished it.

by **ADH** » Wed, 01 Jul 2009 13:24:36 GMT

So it's only for retail cards (like a store)? I have a Citi card, but I don't use it. It's just there for emergencies. If I did get anything from them in the mail, I probably just threw it away without reading it.

by **kolby** » Wed, 01 Jul 2009 14:21:00 GMT

ADH wrote:So it's only for retail cards (like a store)? I have a Citi card, but I don't use it. It's just there for emergencies. If I did get anything from them in the mail, I probably just threw it away without reading it.

And that is what they rely on. People not reading the pages of fine print that they send. My wife had that happen to her and by the time I actually got ahold of one of her statements, the interest was at 32% (prior to marriage). RIDICULUS!!! There was no reason for it. They just fed on the fact that she didn't keep a close eye on it.

by **ADH** » Wed, 01 Jul 2009 14:57:52 GMT

We don't keep a balance on any of our cards, but if I ever plan to I'll definitely keep in mind to check that first! Although in an emergency, I'm sure I probably wouldn't have the chance to....

FINE, I'll go check it!! :wink:

by **Tracy** » Wed, 01 Jul 2009 15:17:53 GMT

put an emergency fund together instead of using the card. easy enough to do if you set a budget up.

Dave says 1,000 is a good idea to start with

by **catnipandcarrots** » Wed, 01 Jul 2009 15:25:04 GMT

I just got a call from "Card Services" offering to lower my rates to 6.25%. I don't have any balances and hung up. I looked up the number and it may be a scam. 402-982-0771. So much for the Opt -Out phone thing.

Suzi Orman (our financial guru)

says you need at least a savings of 8 months take home pay. It does make sense in this day & age.

by **~H*B*G~** » Wed, 01 Jul 2009 15:29:01 GMT

catnipandcarrots wrote:I just got a call from "Card Services" offering to lower my rates to 6.25%. I don't have any balances and hung up. I looked up the number and it may be a scam. 402-982-0771. So much for the Opt -Out phone thing.

Suzi Orman (our financial guru) says you need at least a savings of 8 months take home pay. It does make sense in this day & age.

Dave Ramsey does his financial freedom in baby steps. The first is to set back 1000 for EMERGENCIES (washing machine croaked, flat tires, garage doors, etc) the second is to pay off all debts excluding mortgage. the third is to put back 3-6 months of living expenses. (remember, you just paid off all your debt except your house) and I forget the others right now.

by **catnipandcarrots** » Wed, 01 Jul 2009 15:43:32 GMT

Sounds like Dave is giving some practical advice, too. These little emergencies do pop up more than you'd think! :roll:

I recently got a muffler bolt jammed into my brand new truck tires (I had just replaced the crappy OEM junk GM calls tires) and of course, I hadn't bought road hazard insurance. The tire is still on display at Integrity in Middletown. :lol:

by **ADH** » Wed, 01 Jul 2009 20:13:35 GMT

Tracy, that is a good point and we do have much more than that saved which would serve as the first place we went in an emergency. We also have IRA's and SEP accounts in place. We're definitely preparing for whatever the future brings -- the credit card is there "just in case." Hubby and I each have one that we don't use. I have no idea what circumstance I would use it in, but just feel more comfortable knowing it is there if I absolutely need it for some reason.

I relied on credit cards a lot until I got married and hubby taught me that if you can't pay for it in cash, you can't afford it. He's good for something! :wink:

by **ADH** » Wed, 01 Jul 2009 20:22:45 GMT

I just read HGB's post and it sounds like we are on the right track. I don't necessarily feel "finally free" but the only debt we have is our mortgage and student loans. The student loans are almost a second mortgage, though. :cry:

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Citi raises rates on millions of credit cards: report

Citi raises rates on millions of credit cards: report

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Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

Re: Citi raises rates on millions of credit cards: report

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