Comments on: Read the Fine Print is Especially Important with Anything Related to Credit Cards http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/ A personal finance blog where we share insights on carefully saving money, investing, early retirement, mortgages, stocks because the little things matter in achieving financial freedom! Sat, 21 Nov 2009 08:01:45 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Play Games Win Prizes http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12293 Play Games Win Prizes Sat, 06 Dec 2008 08:18:01 +0000 http://moneyning.com/?p=1794#comment-12293 After this economy trouble, I have received tons of these letters for a raise in APR. Even with credit scores over 800, these companies don't give you a break! -Mike After this economy trouble, I have received tons of these letters for a raise in APR. Even with credit scores over 800, these companies don’t give you a break!

-Mike

]]> By: Andrea http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12288 Andrea Fri, 05 Dec 2008 20:22:39 +0000 http://moneyning.com/?p=1794#comment-12288 Kathryn: One piece to add to your summary, which was very helpful - usually when you opt out, there is a time limit as to how long you have before your balance has to be paid off. If you've been paying minimum balances but are all of a sudden needing to pay off everything in six months, it could significantly impact your budgeting. Kathryn:

One piece to add to your summary, which was very helpful – usually when you opt out, there is a time limit as to how long you have before your balance has to be paid off. If you’ve been paying minimum balances but are all of a sudden needing to pay off everything in six months, it could significantly impact your budgeting.

]]> By: Kathryn http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12287 Kathryn Fri, 05 Dec 2008 20:00:11 +0000 http://moneyning.com/?p=1794#comment-12287 If you "opt out" they Citibank will close your account and you will continue to pay off the card at the present terms. Here are some things to consider. Once the account is closed you may receive additional notices regarding a change to the status of your account. Do not toss them out thinking they no longer apply to you. You must continue to opt out or the terms will kick in as stated in the letter. Yeah, I know, it doesn't make sense your closed account would be affected but they can still change the rate and other terms. Of course, if this happens, you can call Customer Service to point out the error and they will "research" it and let you know, by mail what they decided. Trust me ... it's easier to keep opting out with each and every notice. The other thing to consider is that your credit report will now have the comment "Closed by Issuer". Though true, it tells only part of the story. First your credit score goes down because your level of debt to available credit has now increased (you still have the debt but no longer have the credit). Also, no one seeing your report knows why Citibank closed the account. All someone can see is that Citibank, not you, wanted the account closed. Solution? Call Customer Service and see whether you can negotiate alternate terms.If you can't and must either accept or "Opt Out", well, that's for you to figure out. Good luck. If you “opt out” they Citibank will close your account and you will continue to pay off the card at the present terms. Here are some things to consider. Once the account is closed you may receive additional notices regarding a change to the status of your account. Do not toss them out thinking they no longer apply to you. You must continue to opt out or the terms will kick in as stated in the letter. Yeah, I know, it doesn’t make sense your closed account would be affected but they can still change the rate and other terms. Of course, if this happens, you can call Customer Service to point out the error and they will “research” it and let you know, by mail what they decided. Trust me … it’s easier to keep opting out with each and every notice.

The other thing to consider is that your credit report will now have the comment “Closed by Issuer”. Though true, it tells only part of the story. First your credit score goes down because your level of debt to available credit has now increased (you still have the debt but no longer have the credit). Also, no one seeing your report knows why Citibank closed the account. All someone can see is that Citibank, not you, wanted the account closed.

Solution? Call Customer Service and see whether you can negotiate alternate terms.If you can’t and must either accept or “Opt Out”, well, that’s for you to figure out. Good luck.

]]> By: MoneyNing http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12285 MoneyNing Fri, 05 Dec 2008 19:51:38 +0000 http://moneyning.com/?p=1794#comment-12285 Andrea: I see your point but the effects will depend on the amount of people that your scenario happens to. I just don't think that's a lot since I truly believe that anyone can also stretch out $200 out of their monthly budget if they REALLY try to as long as they have income. We will see though. I sincerely hope that more bad things don't happen. Andrea: I see your point but the effects will depend on the amount of people that your scenario happens to. I just don’t think that’s a lot since I truly believe that anyone can also stretch out $200 out of their monthly budget if they REALLY try to as long as they have income.

We will see though. I sincerely hope that more bad things don’t happen.

]]> By: Andrea http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12284 Andrea Fri, 05 Dec 2008 19:35:54 +0000 http://moneyning.com/?p=1794#comment-12284 Ning: Separately, I would agree with you. But if skipping the credit card payment means you can get your mortgage payment in, which would you choose to pay? Ning: Separately, I would agree with you. But if skipping the credit card payment means you can get your mortgage payment in, which would you choose to pay?

]]> By: MoneyNing http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12281 MoneyNing Fri, 05 Dec 2008 18:53:15 +0000 http://moneyning.com/?p=1794#comment-12281 Andrea: Despite everyone saying that the credit card bubble is the next to fall and that everyone will default, I just don't see it because many people are still going to be able to come up with the minimum (unless everyone loses their job). It's $200 versus $2000 for a mortgage so I don't believe it's going to be as severe unless we get depression like unemployment numbers (10%+ etc). Andrea: Despite everyone saying that the credit card bubble is the next to fall and that everyone will default, I just don’t see it because many people are still going to be able to come up with the minimum (unless everyone loses their job). It’s $200 versus $2000 for a mortgage so I don’t believe it’s going to be as severe unless we get depression like unemployment numbers (10%+ etc).

]]> By: debt relief http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12279 debt relief Fri, 05 Dec 2008 17:32:04 +0000 http://moneyning.com/?p=1794#comment-12279 I find that even this does not work sometimes. These credit cards send stuff in the mail about all the changes they are making, and what a mother to do? I find that even this does not work sometimes. These credit cards send stuff in the mail about all the changes they are making, and what a mother to do?

]]> By: Andrea http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12278 Andrea Fri, 05 Dec 2008 15:42:12 +0000 http://moneyning.com/?p=1794#comment-12278 It's not just Citibank, although I did get that one a few months ago. I got mine from Chase last week, although oddly enough, only on one of the accounts that we have and it didn't matter anyway because that account had been compromised a few weeks earlier and had been closed down. As for why they're raising these rates, besides the fact that they're drowning after opening up lines of credit to anyone and everyone, I wrote something about cards as well today and would love to hear your thoughts on it, Ning. <a title="The S Word" href="http://www.foolsandsages.com/2008/12/04/the-s-word/" rel="nofollow">The "S" Word</a>. It’s not just Citibank, although I did get that one a few months ago. I got mine from Chase last week, although oddly enough, only on one of the accounts that we have and it didn’t matter anyway because that account had been compromised a few weeks earlier and had been closed down.

As for why they’re raising these rates, besides the fact that they’re drowning after opening up lines of credit to anyone and everyone, I wrote something about cards as well today and would love to hear your thoughts on it, Ning. The “S” Word.

]]> By: MoneyNing http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12275 MoneyNing Fri, 05 Dec 2008 05:39:09 +0000 http://moneyning.com/?p=1794#comment-12275 Erica: Ahh that sounds better. Hopefully they won't make you repay everything immediately. I wonder if they will just increase your APR though? Erica: Ahh that sounds better. Hopefully they won’t make you repay everything immediately. I wonder if they will just increase your APR though?

]]> By: Erica Douglass http://moneyning.com/credit-cards/read-the-fine-print-is-especially-important-with-anything-related-to-credit-cards/comment-page-1/#comment-12274 Erica Douglass Fri, 05 Dec 2008 05:23:32 +0000 http://moneyning.com/?p=1794#comment-12274 If you opt out, they typically close your account -- which means you can't make any NEW charges, but they're happy to continue charging you interest every month under the old terms until you pay it off in full. -Erica (did this with Citibank) If you opt out, they typically close your account — which means you can’t make any NEW charges, but they’re happy to continue charging you interest every month under the old terms until you pay it off in full.

-Erica (did this with Citibank)

]]>