Citibank Credit Cards Eliminate The "any Time For Any Reason" Interest Rate Increase!
By Debbie Dragon
Just about everyone over the age of 18 has at least one card- if not four or more! cards are very convenient, but can quickly turn into your arch nemesis. Consider opening your card statement to find the interest rate has been increased, yet you did not make your payment late, and can determine no other reason for the rate hike. Citigroup Inc has decided to put an end to many of the interest rate increases that consumers are baffled by.
Considering that the average American card holder has over $8,000 in estimated card debt, the interest rates on these accounts make a huge difference in how much money is paid back for card purchases. cards are the solution for shopping online, making travel reservations, and eliminating the need to carry large amounts of cash around with you. Unfortunately, though, most people are not all that good about paying off their entire card balances at the end of each month, and therefore end up paying interest on all of their purchases.
Why Card Companies Raise Interest Rates
Did you know that for most card issuers, raising the interest rate on your cards is a fairly standard practice? They can raise the interest on your account if you’ve made a payment late on any OTHER card or loan; this is called the “universal default”, and consumers who are late once on one of their accounts are likely to see every single card statement displaying the interest rate increase. card issuers can raise your interest rate for the dreaded, “anytime, for any reason” disclaimer typically found within the card terms of agreement!
Citigroup Inc Helping Consumers Save by Eliminating Unnecessary Interest Increases
Cardholders of issued by Citigroup Inc will no longer be the victims of interest rate increases on Citigroup cards due to paying another account late. They also will not raise the rate under the “anytime, for any reason”
clause. In fact, for cardholders of Citigroup Inc issued cards, the only reason for an interest rate increase will be if you specifically make a late payment to your Citigroup account.
Credit Issuers to Play Follow the Leader
It is likely that other card issuers will follow Citigroup Inc’s example with time, as currently many improvements are being made throughout the industry in the favor of consumers. If you aren’t sure of your card company’s policies for interest rate increases, just ask! If they participate in the universal default raising of interest rates, or say they can raise the interest on your account at any time and for any reason, you may want to consider transferring your balances to a Citigroup Inc issued card, as it has the potential of saving you hundreds (perhaps even thousands) of dollars in interest fees over time.
This article is courtesy of CreditorWeb.com, where you can compare business card offers and apply for a card online.
