Just about everyone over the age of 18 has at least one credit card- if not four or more! Credit cards are very convenient, but can quickly turn into your arch nemesis. Consider opening your credit 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 credit card holder has over $8,000 in estimated credit card debt, the interest rates on these accounts make a huge difference in how much money is paid back for credit card purchases. Credit 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 credit card balances at the end of each month, and therefore end up paying interest on all of their purchases.
Why Credit Card Companies Raise Interest Rates
Did you know that for most credit card issuers, raising the interest rate on your credit cards is a fairly standard practice? They can raise the interest on your account if you’ve made a payment late on any OTHER credit 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 credit card statement displaying the interest rate increase. Credit card issuers can raise your interest rate for the dreaded, “anytime, for any reason” disclaimer typically found within the credit card terms of agreement!
Citigroup Inc Helping Consumers Save by Eliminating Unnecessary Interest Increases
Cardholders of credit 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 credit cardholders of Citigroup Inc issued credit 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 credit card issuers will follow Citigroup Inc’s example with time, as currently many improvements are being made throughout the credit industry in the favor of consumers. If you aren’t sure of your credit 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.