To lower interest rates, Citi customers must spend

Google/AP ^ | 19 Novemer 2009 | Candice Choi

[Lorianne]

NEW YORK — For Citibank credit card holders, there is one way to escape the bank's rate hikes currently under way: Meet a monthly spending requirement.

Those who meet the spending minimum — in some cases $750 a month — will be able to get a rebate on their total interest charges for that month. The rebate could cover some or all of the interest rate hike. Customers also need to make payments on time to qualify for the rebate.

Without giving specifics, Citi said the monthly spending requirements and interest rate hikes will vary depending on the cardholder's credit history.

About half of its customers will be able to erase 50 percent to 100 percent of their rate increases through the rebates. Citi said its rebates will be based on interest charges for an entire balance, not just monthly charges.

With 92 million credit cards in circulation last year, Citi was the second largest card issuer in the country, according to CreditCards.com. Chase was the largest with 119.4 million cards, and Bank of America was third with 80.2 million cards.

[EVO X]

Cut your Citi Bank card into about 50 pieces, mail those pieces back to Citi Bank

I would, but have a Frequent Flyer miles card. The virtual account number does come in handy for internet shopping. I have another card with much lower rates for emergencies..

[DH]

Isn’t it amazing how full circle things have come about?
Used to be that banks were thankful for your business. Now, you have to consider yourself lucky if a bank will even talk to you.

Banks now consider a rare privilege indeed for you, to have the good fortune to let the bank suck the money right out of your hands.

[raybbr]

Wow, this is weird. I have a Citi card and I get no interest for up to six months on purchases over $299 and no interest for up to three months on purchases of $99 or more.

The standard purchase rate is 7.24%. I really have to say that this card has saved me some interest over the year and a half I've had it.

The kicker is that I'm out of work and have no income yet I have a credit score very near 800.