Here are two big stories you should know about this week to stay on top of your personal finances.

Part 1: Citibank Closing Some MasterCard Accounts

Various news outlets have reported on a gasp-worthy move by Citibank in recent days. Apparently, the company has taken to closing various credit card accounts – sometimes for what seem to be pretty arbitrary reasons.

While such action has been almost common during this recession, it seems Citi’s customers have been vexed by the apparently baseless decisions. Ordinarily, card issuers cut off a person’s credit for reasons such as:

• Late or missed payments: Failing to get a payment to your card issuer on time could – especially when credit is tight – lead to a lowered credit limit or canceled card.
• Negative actions in your credit report: Some card issuers consider missed payments and late fees on any credit product a reason to limit or end your credit.
• Inactivity: If you haven’t used your card in ages, it may get canceled.

But, according to stories from the Business Insider, some Citibank customers are seeing their cards cut off with no warning – for no apparent reason.

What You Can Do

Unfortunately, there’s no law in place that prevents credit card companies from ending a customer’s line of credit. But, if you think your card was cut off in error, don’t hesitate to call your issuer’s customer service line. Be prepared to defend your case with specifics about your payment and charging history (you may want to have your last few bills handy).

Your credit score depends partly on age of accounts and credit availability ratio, so it may be in your best interest to keep cards open if possible.

Part 2: New Book Prices Slashed

One of the biggest stories in retail news right now is the price of books. Apparently, major retailers like Walmart, Amazon and Target have been cutting prices for brand-new books by bestselling authors to as low as $8.99!

Take Advantage of It…

If you’re shopping for holiday gifts for readers, now may be the time to stock up on new titles – this could be a short-lived experiment that is not repeated in the future. And, if becomes the norm, the groups who stand to lose are publishers and writers.

…But Stay Realistic

If you’re the main bookworm in your life, though, these prices may not be low enough to justify spending too much new books. Remember that used bookstores often have titles available for serious discounts – and libraries offer thousands of titles for no cost at all!

Tags: citibank, credit cards, mastercard, shopping