Citibank to Cut Some Credit Card Rates
ÐÊNEW YORK, April 16ÛÓCitibank, the largest issuer of Visa and Master-Cards, said today it will sharply cut credit card interest rates for its best customers, a move expected to reduce stubbornly high rates throughout the industry.</br></br>Û¢ "WeÛªre starting to see the beginning of a price war, finally, in the credit card business," said Gerri Detweiler, director of Bankcard Holders of America, a consumer group in Hemdon. j^This is something that weÛªve been waiting for [for] a decade.ÛªÛª</br></br>Beginning June 1, Citibank will scrap its 19.8 percent fixed rate on its so-called ÛÏclassicÛ Visa and Master-Cards for a low rate of 15.9 percent for qualifying cardholders. Consumers With "preferredÛ cards, which carry a</br></br>The new rate is offered to Citibank card members who have been with the bank a year, pay on time, stay within their credit limits, and have charged at least $1,000 on the classic and $3,000 on the preferred cards, Citibank said.</br></br>About 9 million cardholdersÛÓor about one-third of all Citibank's Visa and MasterCard holdersÛÓimmediately will qualify for the neW rates.