What is Citibank thinking?

Author: messy

2 Jul

This is a little snapshot of my online statement. They bumped up my credit line to $27,500! Who in the heck needs a credit line that big? I don’t even recall getting anything in the mail saying my credit line was being increased. I’m shocked by the increase, it’s almost as if they want me to fail. Don’t worry though, I’m not charging anything!

I wonder if the increase helped out my credit score? Now my debt to available credit looks a tiny bit better. I also wonder if the credit line increase has anything to do with me paying all my credit cards on time all this year?

For now I think I’ll leave it as is and hope I get a 0% transfer rate offer.

I LOVE the ZERO activity! Woo hoo go me!!!

Filed under: debt

6 Responses for "What is Citibank thinking?"

consolidate debts July 2nd, 2008 at 7:15 am 1
i am looking forward for 0% transfer rate too.
Traci July 2nd, 2008 at 7:20 am 2
You know, you can call them and have it lowered…and lowered…as you pay it down. It won’t be so tempting to use it if it doesn’t have anything left on it…. They always hope that you will find that BIG purchase and use it. Actually, my mother paid off her truck one time using a credit card because it was 0% interest for 12 months…and she paid it off in the 12 months. I would have been stuck with accrued interest if I had ever done that…..so, just sticking where I am….and using a good shovel…tee hee
Traci July 2nd, 2008 at 7:46 am 3
Ok, nix the previous post….I just found out that the higher the credit line is, it can reduce the interest rate….hmmmm, guess I need to have mine increased…..to change my debt/credit limit ratio.
budgets are sexy July 2nd, 2008 at 8:15 am 4
I’d say totally leave that credit line open as you’re right - it DOES affect your debt to credit ratio and these days, anything that helps your credit score is a HUGE plus.
Jim ~ mydebtblog.com July 2nd, 2008 at 8:39 am 5
Who needs a credit line that large, better yet why do you need a credit score? The positive here is your debt to credit ratio is at 66% and I’m not sure what your credit line used to be. You could call them up and try to haggle for a lower interest rate.

Keep in mind that those 0% transfer rates are on top of the current balance you owe. If you currently owe 18k at 12.99% APR and transfer a balance at 0% APR, any payments made will go to the 18k first. This basically causes the interest in the balance transfer to build up over the timeframe of the offer. You will end up with interest rate of a normal balance transfer being added to the balance when the offer expires. I would only transfer a balance to a card that has no balance so that it is possible to pay it off before the interest can be added.
messy July 3rd, 2008 at 10:43 am 6
Jim - Good point. Why do I need a credit score? I’m done with credit so I guess my credit score really doesn’t matter but for some reason it is important to me, must me my old way of thinking.

12.99% is my purchase APR, the majority of the balance on that card is locked in at about 4% on a balance transfer.

I remember about 10 years ago when I used to get flooded with 1.99% or ZERO percent balance transfers until the balance is paid off. I wonder if there are any more of those offers around anymore?