Creditnet News Story
Citibank offers way to lower increased rates
Tuesday, November 24, 2009
By William Davis
Customers must spend minimum amount each month.
When considering credit card offers from certain companies, consumers should consider how lenders might be reacting to new laws put forward by Congress.
For example, the Associated Press noted recently that Citibank is raising rates on a number of cards, though the company is offering customers ways to earn back some of that interest. Customers have to meet a minimum-spending limit each month and have to pay their bill on time in order to qualify.
The minimum-spending requirement could be as high as $750 a month. If customers meet this requirement, they may be able to earn anywhere from half to the entire interest rate increase back.
"As always, you have the right to opt out and pay down your balance under your current terms," a letter to a Citibank customer read.
If customers choose to opt out, they should keep in mind that it could end up affecting their credit score because accounts are closed once they are paid off. Closing an account can take away the credit history associated with that card, which has the potential to reduce a credit score.
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