Capital One raising interest rates! (charge, balance, fee, sell)

[marysally]

Originally Posted by sierraAZ

Weird. I haven't had the terms changed on any of my CCs. Only Discover lowered the rate by 1% some time ago on its own in the hope they'd make me carry a balance, I suppose, as I use it exclusively for all my expenses I can possibly load on it. I have to say MBNA (B of A now) declined to match a lower rate, though. I got some offer for 7.99% and just out of curiosity called them to see what they'd do (theirs is 8.99), but they didn't budge. I've never carried a balance, but still like the idea of having at least one card with a decent rate need be...

I have had a CapitalOne card for a number of years and have never had a balance -- always paid off at the end of the month. My credit limit is $12,000 and I have on several occasions had $3-4K on the card (and paid off at end of month) when I was doing home renovation projects. I received the letter last week raising my purchase rate to 17.99% (and adding a variable component). I will probably keep the card but use less since the interest rate makes no difference because I pay off each month. However, it is not a sign of good customer relations when they raise rates on good customers like me. My main concern at this point is that I have a trip to England planned for this summer and had planned to use this card while there. From reading others comments I am afraid that htey will decide to drastically lower my credit limit leaving me in a lurch!

[Pilgrim21784]

I'm a Capital One CC customer. I use the card for travel (airlines, rental cars, etc.) and always pay it off in full every month. The interest rate is irrelevant to me. Carrying a balance is very foolish. Using CCs is simply a convenience and necessary for a variety of transactions in the modern world. Peole who use credit without the cash in hand to pay their bills get no sympathy from me. Either you have the cash to pay your bills or you shouldn't use it (and ultimately defraud by defaulting on payment). If you don't have the cash, don't use it.

[donsabi]

I got the same letter from Cap One. I always pay off the balance and have never been late. I called and was told that they raised the rate on preferred customers to help pay for those that are defaulting. However, because it seems that this was applied to those of us who pay off our monthly bills it really may be that they no longer want us as customers. American Express is offering $300 to return their cards and that may be a current trend with some credit card companies.

[Woof Woof Woof!]

Banks need money. Many are insolvent, so it come as no surprise that they are trying to gain extra revenue by raising interest rates and penalties.

Pay up! Offer your flesh to the Gods. The banks are hungry!

[njguy]

Originally Posted by Woof Woof Woof!

Banks need money. Many are insolvent, so it come as no surprise that they are trying to gain extra revenue by raising interest rates and penalties.

Pay up! Offer your flesh to the Gods. The banks are hungry!

Banks are greedy loan sharks.

Bad/Deceitful mortgage loan practices at the least.

They got Billion$ of our Tax Dollar$.

CEO's making mega-buck$ and still receive Huge Bonu$e$ and Perk$ at our expen$e.

[Ultrarunner]

There was a time when the Banker/Customer relationship was built on trust...

Doesn't happen anymore... no one stays around long enough to build a relationship.

My Brother applied for a credit card when he was 16 and the Savings and Loan approved him upon the recommendation of the Branch Manager... no co-signer and no parental involvement... our parents didn't even have accounts with the Bank.

I can't imagine this would be the case today...

The Manager explained he was going out on a limb by recommending my brother be approved because the Bank wouldn't have recourse should my brother choose not to pay since he was still a minor.

A short time later my brother had his Brand new, no fee, MasterCard in his name with a $400 limit.

We still Bank at the same Bank today because of loyalty... but things really changed when they were taken over by a big National Bank.

[texdav]

There was a time when unsecured credit was very high and very limited. That is what is happenig agian. They have to keep the rate the same on credit already given ;so that means that they will raise the reate and limit credit because of teh risk.How did you thni they gave out unsecried cradit to thwe masses and had so mnay defaults;they spread the risk. Now they can't;they have to raise the rates. Noone makes people take the credit and your present debt wil stay at the same rate.Welcone to the new/old world of credit or even for some no more credit.

[trishguard]

I just got a notice two days ago that I'm going from a fixed rate of 14.9% to a variable rates as follows:

Purchases and Balance Transfers 17.65 % (rate determined by adding 14.65% to Prime rate)
Cash Advance 24.9% (rate determined by adding 21.65% to Prime rate)
Default APR in the event of late payments 29.4% (determined by adding 26.15% to the Prime rate)

I hadn't been using this card other than for the credit montoring service I signed up for with Capital One, so I'll be cancelling this card shortly.

Edit: I am so glad I don't carry balances on my cards.

[newtoli]

Got the notice as well.

Never late, pay in full every month. 22.9%! Will be canceling this card even though I don't carry a balance. I won't do business with a company that's punishing me for paying my bill on time.

[SSWM]

I got the same thing in the mail as everyone else. Nice thing to know that you're not appreciated as a customer.

I say cancel them all and cut them all up. Credit cards should be done away with. Use your debit card if you must use plastic.

As someone who accepts CC, I still pay 4% per purchase. At least they haven't raised those rates yet. And when they do, bye-bye CC machine.