Credit Repair Blog

Higher Credit Card Rates: Citibank Changes Its Mind

Recently, Citibank announced that they will be notifying all of their credit card holders that their credit card interest rates will be increased.  Unlucky holders of Citibank credit cards will receive a notice of the increase in rates in their November credit card statement.  The new rates will be 2% to 3% higher than the current rates charged by Citibank.  Depending on the cardholder’s credit score and the type of credit product they hold, this will raise rates up to over 20%.  If you carry a balance on a Citibank card, this is going to hurt.

So what can you do about it?

You have a few options.  First, when you receive the notice of the increase in rates, you will have a chance to “decline” or turn down the increase on your card.  If you do so, you will have to pay down the balance on your account (under your old rate).  You may also be able to keep using your card until the card expires.  Then, you will need to start shopping around for a new credit card.  Before you start on this process, you had better double check your credit score to make sure that you will be able to qualify for another credit card (and hopefully at a better rate).