I had two cards, both platinum level, one from CITI and one from Chase. Both had $25K limits on them with single-digit interest rates. both cards had zero balances.I looked at the CITI statement (after using the card for a $2K purchase) last month and found my interest rate was now 15.9%. I called and asked why and they said it was random and cited the state of the economy, etc.
I told them that was BS and would consider cancelling the card. They offered me a new card, diamond level, at zero interest and zero balance transfer until March of next year and 9% thereafter. I asked them why not just lower the platinum back to where it was and save us all time and paperwork. They said it didn’t work that way. Take it or leave it. Sheesh, what a hassle. When the diamond card arrived, I transfered the 15.9% platinum balance to the zero balance of the new card. It saved them nothing. In fact, it cost them 9% (APR on the older card).
I also noticed that the cash advance APR was through the roof. You are typically eligible for 10-20% of you total limit in cash advance. The interest rate on the advance was 29.6%. Won’t be going there. And, it gets paid off last. They reserve the right to pay off the lower interest charges first (regardless of the age of the charge). So the cash advance stays out there racking up interest payments while all your 0% stuff is paid first.
The coup de grace was when (in the same conversation) they told me that I no longer had $25K per card but $25K total between them. I was then asked to weight the cards and that would be the limits for the foreseeable future. So basically, they cut my credit in half.
FWIW, I have had CITI cards for over 25 yrs and have an 800+ credit score. I pity the poor person whose score hovers around 600 or so.
I wonder if the administration’s new regs change any of the BS I just had to go through?
I bet a lot of freepers would have stories like yours. My two companies are the same as your two companies.
If you read post number 2, if they cut your credit limit it also has an impact on your credit score. It might not be as high as it was. Available credit is one determination.
This subject could be very educational. And it is just the beginning for what is in store for us.