Citi bank hikes credit card rates to 29.99 Percent

[ShamsWoof10]

This is all just part of the credit DEFLATION that's all... Since credit makes up a HUGE majority of our money supply we are experiencing HYPER-DEFLATION right now...

NO BIGGY...

[andywend]

Amex sucks for me..they want the entire amount I spend each month

AMEX has some nerve expecting to be paid back each and every month for the money they lend to you, LOL.

I can see someone under 25 doing the irresponsible thing. Maxing out a bunch of cards, and then just not pay. It is an unsecured loan.

Very simple way to stop people from doing this. Make all bankruptcies stay on your record PERMANENTLY.

This simple, common sense change will drastically reduce bankruptcies.

[JoshW]

I got the same letter and am opting out as well. I have a 2.99% rate for the life of the balance, and I am not about to give it up or pay 30% interest. Would be a a 1000% increase in interest.

[Fishhead]

If one has a CHASE or CITI card........dump them as soon as possible.

They are thieves of the highest degree!!!!

They make Madoof look like a mall shoplifter......and I'm not kidding.


FH

[ShamsWoof10]

AMEX has some nerve expecting to be paid back each and every month for the money they lend to you, LOL.

Yeah especially when they just invent it so when they don't get paid back they lose money they never had...

Very simple way to stop people from doing this. Make all bankruptcies stay on your record PERMANENTLY.

This simple, common sense change will drastically reduce bankruptcies.

It will reduce everything else too... It's not as simple as that and if you think so then you are not looking too far into this...

[ucbearcats1027]

[jon101]

Bankruptcy shouldn't be on your record permenantly, because most bankruptcies are due to overpriced medical bills, that people should be insured for. You wanna give them insurance at an affordable rate then make bankruptcies permenant ok, but the bible specifically Deuteronomy says that bad debts should be declared void after 7 years. Last time I looked it was in God we Trust.

[losturmarbles]

avoid credit cards from the big 5 if you can or any big mega bank. you will get better rates and better service from smaller community banks or credit unions.

problem is if you don't have good credit or have a thin history of credit, these smaller banks won't give you an unsecured loan, ie credit.

so use your amex or citi, build a history of paying it off every month, after 6 months open another account (if you apply at more than one, do so all within a one week period and it won't hurt your credit rating any worse than just applying for one)
after building a credit history with these cards maybe around 12 months later (18 months from initial card), start asking for higher credit limits if they aren't already raising them without you asking.

you can try applying at a credit union, online bank, community bank after you've built up your credit a bit. also debit cards don't build any credit history.

1/3 of your credit score is directly based on the percentage of used credit vs available credit. so you really never want to be above 30% used credit, ideally you want to be in the single digits.

this is why even if you don't want to do business with citi or boa or whoever anymore, you shouldn't cancel your account. you're only doing harm to yourself by reducing your total available credit, reducing your credit score, and could trigger other preemptive moves from other banks aimed at screwing you.

if you do get a notice that they are going to be hiking your rate up to 30%, you have to weigh your options. you don't want to opt out unless you can't pay the full balance off, or you can't transfer it to another card at a lower rate. if you have a balance you're slowly paying off at a low rate like joshw said, opting out and closing your account may be the best move. it will remove that amount from your available credit and will harm your credit score but financially keeping the rate at 3% makes the most sense, unless you have that money sitting in an account earning next to nothing and can pay it off.
if you don't have a balance on your card and citi or whoever raises your rates, just keep your card and don't use it. keep the account open or else your credit rating will take a hit and you might not be able to open an account with a bank/credit union that would respect you as a customer.
also if you have cards that you never use and that don't have a balance, it would be prudent to use them about twice a year. i've got a couple that i will use once around independence day and once around christmas. i'll buy something small and just pay the bill the next month. this will keep your accounts active and will count toward your credit standing.

to keep an eye on your credit:
www.annualcreditreport.com is the official site where you can get a copy of your credit report once a year completely free without signing up for any garbage. there are 3 credit agencies, they should have the same information, but you need to pull from all 3 to be sure. also don't pay for a made up score. the only score that matters is your FICO score and you can get close approximations at www.quizzle.com and www.creditkarma.com for free.

[andywend]

Shamswoof, even if an individual went bankrupt 30 years ago, any entity that is deciding whether or not to loan money to that individual has a right to know if they ever defaulted on a loan whether it was 5 years ago or 50 years.

I realize this might not be the perfect answer but right now way too many individuals as well as corporations are taking advantage of the liberal bankruptcy laws currently in existence.

Bankruptcy shouldn't be on your record permenantly, because most bankruptcies are due to overpriced medical bills, that people should be insured for

Its this exact kind of thinking why medical bills are sky high as it is. The reason why hospitals charge $10 for a Tylenol is because 90% of the people don't pay anything for the services they are getting.

Why do so many ignorant people believe that unlimited, free medical care is a right of every American?

If people were refused medical care for inability to pay, then the prices would come crashing down for those that do. All of the deadbeats who believe medical bills belong in the trash (like RenoCool) have caused this huge problem with medical care costs skyrocketing.

Due to these deadbeats, EVERYONE but the super wealthy is going to see a serious reduction in the quality of medical care they receive if Obama's health care plan passes.

Any medical facility will work out payment plans for those who can't afford to pay their entire bill all at once.

I have no sympathy whatsoever for those who refuse to pay anything for medical services. As a matter of fact, I loath them with every fiber of my being and wish they would do the world a favor and drop dead as soon as possible. This would be of great benefit to us all.

[Mr KLC]

You mean to tell me that a credit card company owned by the federal government is raising rates to 30%? I don't believe you!!! Yes we can! Yes we can! Change! Change! (sarcasm)

[ShamsWoof10]

Shamswoof, even if an individual went bankrupt 30 years ago, any entity that is deciding whether or not to loan money to that individual has a right to know if they ever defaulted on a loan whether it was 5 years ago or 50 years.

I don't think it matters... At one point you wore dippers but things change... The point is countries, companies, and people go bankrupt... so what!!! The U.S. of... went bankrupt how many times in it's history...? The only thing that changes in your life is you can not get credit and that is not really a big deal unless you want to keep up with the "Jones's"... I hate to break the news to you all but credit like this has not been around for very long and people actually lived without it... can you believe that..????? The system is not only DESIGNED to have a reset button like this but really can't function without it...

I realize this might not be the perfect answer but right now way too many individuals as well as corporations are taking advantage of the liberal bankruptcy laws currently in existence.


Its this exact kind of thinking why medical bills are sky high as it is. The reason why hospitals charge $10 for a Tylenol is because 90% of the people don't pay anything for the services they are getting.

Why do so many ignorant people believe that unlimited, free medical care is a right of every American?

If people were refused medical care for inability to pay, then the prices would come crashing down for those that do. All of the deadbeats who believe medical bills belong in the trash (like RenoCool) have caused this huge problem with medical care costs skyrocketing.

Due to these deadbeats, EVERYONE but the super wealthy is going to see a serious reduction in the quality of medical care they receive if Obama's health care plan passes.

Any medical facility will work out payment plans for those who can't afford to pay their entire bill all at once.

I have no sympathy whatsoever for those who refuse to pay anything for medical services. As a matter of fact, I loath them with every fiber of my being and wish they would do the world a favor and drop dead as soon as possible. This would be of great benefit to us all.

It would take too much typing to explain why you are WAY OFF on this...
By the way EVERY Saudi Arabian get COMPLETELY FREE WORLD WIDE coverage on EVERYTHING and I mean everything... The U.S. of.... has the largest economy on the planet and one of it's states has the fifth largest but can't afford to feed and care for their own and you don't see anything wrong here..????

[JoshW]

My personal opinion is that we will never see consumer credit offered at the levels we have seen in the last decade.

I had a MBNA student card. I never submitted any employment information, but twelves year later the credit limit had gone from 1k to 48k. Bank of America now has the account, and they in the last year cut in the credit limit in half.

Lots of smart (and not so smart) people used the crazy amounts of credit to finance other investments and businesses. But those days will be ending. Obama is making it difficult to for the issuers to make money on the cards. And the amount of personal consumption has run up many accounts so high, that the banks are finally going to have to take some big losses as people don't pay.

A good credit history will always be worth something, especially on secure loans like houses, but the value of good credit will never be worth what it is now.

[losturmarbles]

Shamswoof, even if an individual went bankrupt 30 years ago, any entity that is deciding whether or not to loan money to that individual has a right to know if they ever defaulted on a loan whether it was 5 years ago or 50 years.

I realize this might not be the perfect answer but right now way too many individuals as well as corporations are taking advantage of the liberal bankruptcy laws currently in existence.


Its this exact kind of thinking why medical bills are sky high as it is. The reason why hospitals charge $10 for a Tylenol is because 90% of the people don't pay anything for the services they are getting.

Why do so many ignorant people believe that unlimited, free medical care is a right of every American?

If people were refused medical care for inability to pay, then the prices would come crashing down for those that do. All of the deadbeats who believe medical bills belong in the trash (like RenoCool) have caused this huge problem with medical care costs skyrocketing.

Due to these deadbeats, EVERYONE but the super wealthy is going to see a serious reduction in the quality of medical care they receive if Obama's health care plan passes.

Any medical facility will work out payment plans for those who can't afford to pay their entire bill all at once.

I have no sympathy whatsoever for those who refuse to pay anything for medical services. As a matter of fact, I loath them with every fiber of my being and wish they would do the world a favor and drop dead as soon as possible. This would be of great benefit to us all.

andy, shit happens. we live in a culture where kids are encouraged to spend money they don't have. if they want something, get it. finance it. it's the rent to own mentality.
just because someone happens to make some foolish choices at some point in their life doesn't mean they can't one day be responsible. and anyone that files bankruptcy has to work hard at restoring their credit, even if it comes off after 7 years, they still basically have to start over.

people sometimes make foolish decisions. we all do. you can't permanently punish someone for being human.

besides the credit card companies usually know who is more likely to not pay. that is why someone with bad credit will have a higher interest rate. that's why thin history people have to go through probation periods, before given more trust. if a bank decides to give someone an unsecured loan, meaning they have no collateral, and sometime down the road this person files bankruptcy, oh well. shit happens. they knew the risk in making an unsecured loan.

and the reason hospitals charge $10 for 2 tylenol pills is because people are spending other people's money. most people fall into one of 2 groups. those that have health insurance policies owned and payed for by their employers, or those that are covered by some form of government insurance. the first group are actually paying for the health insurance but don't know it. since their employment is budgeted to cover the cost of the insurance, this money is paid directly to the insurance company so the employer can own the policy instead of you being paid the money and letting you buying and owning your own policy. and since insurance is paying for it, why should they care if a $5 shot cost $100, or a $.50 pack of tylenol cost $10. same goes for those on medicaid/medicare/etc.

that is the crux of the problem with health care costs. artificial demand caused by government intervention. our third party payer systems shield the true cost of health care and remove the market forces that keep prices in check.

[jon101]

Yeah but lets be honest the doctors expect to be paid no matter what. They will bill an insurance patient to no end, and let a no insurance patient rot. I admit the system is flawed, but making bankruptcy permenant is not a solution, like I said if you believe in the Bible then flip to Deuteronomy and read.

Republicans claim to be Bible thumpers so it should be easy for ya.

I am an Independant that believes Republicans and Democrats have been corruupted by lobbyists that control America. So the only real solution is do what the politicians like Obama claim every 4 years they are gonna do which is eliminate the special interest cash. But of course they never do.

[losturmarbles]

Yeah but lets be honest the doctors expect to be paid no matter what. They will bill an insurance patient to no end, and let a no insurance patient rot. I admit the system is flawed, but making bankruptcy permenant is not a solution, like I said if you believe in the Bible then flip to Deuteronomy and read.

Republicans claim to be Bible thumpers so it should be easy for ya.

I am an Independant that believes Republicans and Democrats have been corruupted by lobbyists that control America. So the only real solution is do what the politicians like Obama claim every 4 years they are gonna do which is eliminate the special interest cash. But of course they never do.

yeah that's what we need, laws and policy based on the bible.

[Fishhead]

Game, set, match.

[jon101]

They are incase you haven't noticed.
Starting with thou shall not kill.
Its been proven to increase morality among the general sheeple.
But atleast things are correct as they stand, bankruptcy only lasts on a persons record 7 years.
So dream of laws that aren't based on the Bible, and dream of making someones failure permenant but reality is much different.

[losturmarbles]

They are incase you haven't noticed.
Starting with thou shall not kill.
Its been proven to increase morality among the general sheeple.
But atleast things are correct as they stand, bankruptcy only lasts on a persons record 7 years.
So dream of laws that aren't based on the Bible, and dream of making someones failure permenant but reality is much different.

in case you haven't noticed i wasn't appealing for a permanent mark on one's credit.

but you're right, there are plenty of bad laws influenced by some misguided moral code from the bible.

i guess "thou shalt not kill" should have an asterisk beside it.
*excludes gays, disobedient children, witches, fortune tellers, anyone that has premarital sex, anyone that works on the sabbath, followers of other religions, nonbelievers, and false prophets.

so you're telling me that murder would be fine if it wasn't a commandment?
if anyone needs some ancient religious text to tell them that murder is wrong, then they're the one that lacks the moral compass.

and funny you think the commandments are based on some sort of morality, when a couple of chapters after giving moses the commandments, god tells him to go commit genocide and slavery.

[Trojan]

The writing is on the wall folks!!!

The stock is going to crash back down below 8,300 and housing will slump more.

Soon there will be NO CREDIT but for a very select few.

We are doomed.

Thanks a lot Captain Bringdown.

[jon101]

Yeah well some people are so stupid they need a set of rules to follow.
Like the democrats who laugh at the bible, and fuvk each other in the ass.
Meanwhile the republicans do the same thing and claim their the moral majority.
Crook A or Crook B, never a real choice.
So when sheeple decide they want to really get something done they will stop giving their money to people like that and vote for real change. Not Obama I am a radical and gonna screw America style change.