Comments on: What is Citibank thinking? http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/ My blog about life and getting out of debt. Wed, 07 Jan 2009 04:02:25 +0000 http://wordpress.org/?v=2.6.2 By: messy http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/#comment-232 messy Thu, 03 Jul 2008 18:43:20 +0000 http://mycrazydebt.com/?p=151#comment-232 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? 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?

]]> By: Jim ~ mydebtblog.com http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/#comment-228 Jim ~ mydebtblog.com Wed, 02 Jul 2008 16:39:00 +0000 http://mycrazydebt.com/?p=151#comment-228 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. 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.

]]> By: budgets are sexy http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/#comment-227 budgets are sexy Wed, 02 Jul 2008 16:15:20 +0000 http://mycrazydebt.com/?p=151#comment-227 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. 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.

]]> By: Traci http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/#comment-226 Traci Wed, 02 Jul 2008 15:46:26 +0000 http://mycrazydebt.com/?p=151#comment-226 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. 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.

]]> By: Traci http://mycrazydebt.com/2008/07/02/what-is-citibank-thinking/#comment-225 Traci Wed, 02 Jul 2008 15:20:05 +0000 http://mycrazydebt.com/?p=151#comment-225 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 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

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