Citibank Penalty Rate - One Day Late!!!

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IandO
 
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Citibank Penalty Rate - One Day Late!!!

Postby IandO » Thu Jun 25, 2015 7:45 pm

I noticed while reviewing my account online, that Citibank was charging me a penalty rate of 29.99%, and I didn't know why. I looked through my account history, and found that my August 2014 payment had been one day late. I was planning on using the card soon, so I called customer service, she said she showed no lates for the last 12 months. She tried to change the rate but couldn't. She put me on hold and talked with her supervisor. She came back and said I was getting the penalty rate for 12 months, due to being one day late, and there was nothing they could do.
I have a 714 fico, it was 668 when I got the card three years ago. Think twice on dealings with Citibank!


whit
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Re: Citibank Penalty Rate - One Day Late!!!

Postby whit » Thu Jun 25, 2015 9:48 pm

IandO wrote:I noticed while reviewing my account online, that Citibank was charging me a penalty rate of 29.99%, and I didn't know why. I looked through my account history, and found that my August 2014 payment had been one day late. I was planning on using the card soon, so I called customer service, she said she showed no lates for the last 12 months. She tried to change the rate but couldn't. She put me on hold and talked with her supervisor. She came back and said I was getting the penalty rate for 12 months, due to being one day late, and there was nothing they could do.
I have a 714 fico, it was 668 when I got the card three years ago. Think twice on dealings with Citibank!


What was ur rate before and does this mean it'll go back to it after 12 months or? I'm confused.

IandO
 
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Re: Citibank Penalty Rate - One Day Late!!!

Postby IandO » Thu Jun 25, 2015 10:39 pm

Rate before was ( I believe, 17.99%). The penalty rate is what they say they will start charging you if you don't hold up your end of the agreement. They usually quote a range of 24.99% to 29.99%.
Apparently, because I was a day late with a $400 payment, they were trying to get a couple of thousand in interest out of me. But I transferred my balance (nearly 15k) onto a zero interest offer from another card.

takeshi
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Re: Citibank Penalty Rate - One Day Late!!!

Postby takeshi » Fri Jun 26, 2015 8:21 am

Late is late and your terms covered late payments and penalty APR's. It doesn't matter if it's 1 day late or even just a minute after the payment cutoff. It's up to you to ensure that your payments are on time. Do whatever it takes. If you need to then set up autopay to cover at least the minimum due to ensure that you are current.

Granted, some creditors are a bit more lenient about late payments like this and it's up to you to select the creditors that you deal with.

Vermonster
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Re: Citibank Penalty Rate - One Day Late!!!

Postby Vermonster » Fri Jun 26, 2015 7:43 pm

It sucks to be one day late, but the cutoff has to be made at some point. Chase is pretty good about giving you up to the last minute to make a payment over the phone. If you do it online, you take your chances.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Kevin86475391
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Re: Citibank Penalty Rate - One Day Late!!!

Postby Kevin86475391 » Fri Jun 26, 2015 11:59 pm

IandO wrote:I noticed while reviewing my account online, that Citibank was charging me a penalty rate of 29.99%, and I didn't know why. I looked through my account history, and found that my August 2014 payment had been one day late. I was planning on using the card soon, so I called customer service, she said she showed no lates for the last 12 months. She tried to change the rate but couldn't. She put me on hold and talked with her supervisor. She came back and said I was getting the penalty rate for 12 months, due to being one day late, and there was nothing they could do.
I have a 714 fico, it was 668 when I got the card three years ago. Think twice on dealings with Citibank!


On the bright side at least the year is almost up. Only 2 more months to go.

Regarding late payments, not sure if this would be helpful for your situation of course, but I've found it extremely beneficial to pay all of my credit cards once a week instead of once a month - and also transfer money into savings accounts and my IRA. I do them all every week and by doing that it helps prevent overspending because I'm very aware of all of my balances, keeps balances and utilization low, allows me to catch any fraudulent charges promptly, ensures I save and invest before I spend, and obviously makes late payments pretty much a non-issue since in any given month I make at least 4 payments.

I'm sure some people would find this approach labor intensive and time consuming, but personally it works really well for me because I like to login regularly anyway and psychologically it lowers anxiety. That's also why I never do automatic bill pays for like my cell phone or electricity, because they always want to make the auto pay happen like the day before or the day it's due, and I just can't relax with that. I'm constantly thinking, "Well what if there's a glitch and it doesn't go through? I have no cushion time." If they'd do the autopay like the first day the bill is available I'd probably do it, but instead I just make it a point to pay the first day I get it...lol and also check weekly in case a new one's been cut.

Regarding Citi I have to say I've found anything service related to be pretty unpleasant. They have the worst online system of any of my credit cards and the least helpful customer support. They have good rewards though and in my experience generous credit limits, so that makes them worth dealing with for me.

slipper
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Re: Citibank Penalty Rate - One Day Late!!!

Postby slipper » Fri Sep 11, 2015 3:03 am

takeshi wrote:Late is late and your terms covered late payments and penalty APR's. It doesn't matter if it's 1 day late or even just a minute after the payment cutoff. It's up to you to ensure that your payments are on time. Do whatever it takes. If you need to then set up autopay to cover at least the minimum due to ensure that you are current.

Granted, some creditors are a bit more lenient about late payments like this and it's up to you to select the creditors that you deal with.



Let me guess, you have a 850 score across all versions of all three bureaus? No? News flash, no one is perfect. Sentencing him to life of 29.99% APR because of a one day late is almost as ridiculous as serving a life sentence for stealing a pack of gum. Credit card policies like this are outrageous and borderline deceitful.

Vermonster
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Re: Citibank Penalty Rate - One Day Late!!!

Postby Vermonster » Fri Sep 11, 2015 5:39 pm

slipper wrote:Let me guess, you have a 850 score across all versions of all three bureaus? No? News flash, no one is perfect. Sentencing him to life of 29.99% APR because of a one day late is almost as ridiculous as serving a life sentence for stealing a pack of gum.


When you start your own bank you can do as you wish, until then you play by their rules.

slipper wrote:Credit card policies like this are outrageous and borderline deceitful.


I have 7 unsolicited prequalified offers sitting on my table and every single one mentions the APR, The balance APR, the penalty APR as well as any fees, including balance transfer fees, foreign transaction fees, and late payment fees. Every single one of them, from Citi, Discover, Capital One, and Amex, lays all this information out in the exact same way. This is literally the least deceitful thing a credit card company can do.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Gamma
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Re: Citibank Penalty Rate - One Day Late!!!

Postby Gamma » Fri Sep 11, 2015 10:56 pm

slipper wrote:Let me guess, you have a 850 score across all versions of all three bureaus? No? News flash, no one is perfect. Sentencing him to life of 29.99% APR because of a one day late is almost as ridiculous as serving a life sentence for stealing a pack of gum. Credit card policies like this are outrageous and borderline deceitful.


The penalty rate is only12 months and I'm sure by now it's gone. You shouldn't even be paying interest on credit cards that offer rewards. You should get a card that either offers a 0% promotional rate at account opening or offers many of that same promotion every month like Barclays Sallie Mae card, although experience may vary.

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CarefulBuilder14
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Re: Citibank Penalty Rate - One Day Late!!!

Postby CarefulBuilder14 » Sat Sep 12, 2015 12:26 am

Gamma wrote:
slipper wrote:Let me guess, you have a 850 score across all versions of all three bureaus? No? News flash, no one is perfect. Sentencing him to life of 29.99% APR because of a one day late is almost as ridiculous as serving a life sentence for stealing a pack of gum. Credit card policies like this are outrageous and borderline deceitful.


The penalty rate is only12 months and I'm sure by now it's gone. You shouldn't even be paying interest on credit cards that offer rewards. You should get a card that either offers a 0% promotional rate at account opening or offers many of that same promotion every month like Barclays Sallie Mae card, although experience may vary.

It certainly can! I had a year at 0%, but now I'm at 22.99% APR, with BT terms of 22.99% right away and a 4% fee!

Not that I'm complaining about it since I PIF, but you definitely can't rely on Sallie to give good APR/BT terms beyond the intro period.
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