Citibank’s ThankYou campaign is clearly history

cutcreditcardSo the day they get their monster bailout package ok’d, I get a notice from my Citibank MasterCard informing me that my APR on purchases, which is currently 12.99%, will now be Prime + 13.99% with a minimum of 19.99%. And if I screw up and pay the bill a day late, it goes up to 29.99% (thank heavens, since 30% would just be over the top!).

I was kind of waiting for them to kiss me good-bye. I always pay off my balance in full every month, which means the “only” money they make is that 0.5-2% they charge the vendor. And since I get 1% cashback, that pretty much means I’m a pointless customer for them to keep on their miserable books.

My mother is now justifiably worried about the Bank of America Visa of mine that she has debt on. I think it’s a “Prime + 1% on balance transfers until paid off”, so it should be safe…but who knows these days.


12 Responses

  1. for what it’s worth…I’m currently using a few cards with 0% and 1.9% rates – Discover and WAMU. And I always carry a balance. The “really good” cards aren’t always the best. After Chase took over WAMU, they were still offering these great rates. And the ones that have points/rebates/miles etc., I stay away from for that reason. Higher rates.

  2. Holy Crap!
    I haven’t gotten that notice yet — or maybe I did and tossed it as junk mail before even opening it… but I have to say it again… Holy Crap!

  3. Chase sent something similar, I pay off the balance so it’s OK but I was shocked how much the rates were going up.

  4. […] MoneyMateKate mentioned this a few weeks ago on her site and I kinda selfishly thought to myself, “Wow, sucks to be her…” […]

  5. Too bad they don’t charge the losers who carry the cards for the bonus programs. The morons who get 1% cash back just drive the merchants cost thru the roof and cause prices to go up for everyone. In most states the merchant pays more to the credit card processors for these programs than they pay in state taxes. For what?

  6. Yay, my first nasty comment! Too bad it would be more appropriately directed at the marketing folks who design incentive programs and not the few solvent cardholders who participate.

    As someone who takes CC payments through PayPal for her services @ 2.9% processing fees, it’s not like I escape that pain.

  7. Just saw this link on MSN. Yea, I got jacked up to the same rate…I’ve been a citibank card holder since 94, charge at least 1k a month, but I guess it’s not good enough. Funny thing, I thought they did this on purpose because I called a few weeks ago to LOWER my rate since my other citicard has a lower rate. So I told them I’ll just stop using this card until they reconsider. HAHA…So I guess I’m opting out too. My only issue is that I’ve had this card the longest, and if I cancel it, wonder how it’ll affect my score? My score is in the low 800’s, so i’m assuming that regardless, I still will get the best rates out there :). But yea, thanks Citi. All the business I’ve done with you and this is how I get repaid…well, I guess you can just take this card and…… (you fill in the blanks)

  8. […] Christmas bonus from Uncle Sam. I must have been at the top of their Financial Wedgie list, since I got my notice about a week before everyone […]

  9. It’s simple…just pay off you cards to the companies that overcharge and use cash. Why complain?

  10. I’m not complaining. I’m paying off my card in full every month. It’s more principle than anything. The fact that I’m being jacked up for dead beat customers. Also the fact that they just got bailed out, and promised no change in rate, and that’s exactly what they did. I called today to opt out. The poor guy on the line, all he said was “you are opting out because of the rate hike too, huh?”. I’m sure he got yelled at a lot. I spared him, it’s not his fault. He just works there.

  11. I didn’t opt out, even though I think I could without actually having to close my account when my card expires in 10 months. After all, Citibank will be in a different position then: better means a decent replacement offer, worse means out of business. But I’m self-employed, which might mark me as a “risk” despite my credit rating, and then what would I do my online shopping with? I refuse to use a debit card in that environment, so I’m keeping this account with its 1% cashback reward.

  12. I hear ya on the debit card online. I had a hard enough time using my debit card for everyday purchases! But it’s a great feeling that I haven’t used my CC for anything. It’s making the balance go down faster than ever!

    If I need to, I’ll use my discover card or amex card for online purchases.

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