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Received a notice from our card issuer that our rate was being raised to such & such above the prime rate....basically was changing to a variable rate. So what does this mean?
Instead of the 5.00 % APR we've been enjoying over the years, we get to pay whatever the "going" rate is. That could be anywhere from 12% - 20+%.
I called 'em immediately; our credit is outstanding, we're perfect with our payments over the years with this company, and we have a relatively low credit limit with the card ($5600, used for plane tickets, Christmas, etc.)
They stated over the phone that they're changing the way they do business, and it's no reflection on us. It's just the way it is.
We were able to "lock in" our current APR as long as we don't use the card and remain current on our agreement. Use the card...APR goes up immediately.
Received a notice from our card issuer that our rate was being raised to such & such above the prime rate....basically was changing to a variable rate. So what does this mean?
Instead of the 5.00 % APR we've been enjoying over the years, we get to pay whatever the "going" rate is. That could be anywhere from 12% - 20+%.
I called 'em immediately; our credit is outstanding, we're perfect with our payments over the years with this company, and we have a relatively low credit limit with the card ($5600, used for plane tickets, Christmas, etc.)
They stated over the phone that they're changing the way they do business, and it's no reflection on us. It's just the way it is.
We were able to "lock in" our current APR as long as we don't use the card and remain current on our agreement. Use the card...APR goes up immediately.
What a farce.
Anyone else with similar experiences?
My CC company raised my interest by 7 percent. I was never late wth a a payment and have great credit. They said that it is because of the economy. Since I don't keep a balance, I'm not going to worry about it too much.
I pay in full too. They are all raising their rates ..in 2010 they cannot do that anymore and currently the White House Administration wants to crack down on them now.
So they are racing to raise rates before someone in the government passes some law that says they can't.
The credit card companies and banks are going to charge what ever they want to make certain they pay back their loan to the government. Another way the bank and our government are screwing the U.S. tax payer. Don’t expect any help from our government. They don’t care how they get their money, even if it at the expense of the average citizen.
I had a mbna credit card, my first ever, and they were bought out by bank of america. I have never been late, defaulted, etc...paid in full, occasionally had a balance but always settled. Unfortunately, at this point, I have a balance, and my rate was 6.24. They doubled the rate. I called and was upset and was bassically told I did not do anything wrong. Its just the cost of doing business. Bank of america re-evaluated their practices and this is what they did. She equated it to the cost of milk going up. The consumer did not do anything, its just the cost to do business. I am still pissed but my hands are tied. Since this is my oldest card, it would ruin my credit history if I cancelled the account. I just have to suck it up, pay it off and then use them for my best interests (my credit history).
If you aren't paying off the balance every month, you are spending too much money, and need to cut back. Don't blame the banks, get your spending under control...!
Let your feet walk anywhere they wish, it's not the banks fault, they didn't over spend...!
I was lucky to stumble on a 60 minutes about credit card practices. They did a segment on a concept called universal default - one of the more nefarious practices by some card companies. The basic idea is that if you default on any payment to a creditor, the credit card company reserves the right to jack up your rates over night without telling you. This payment could be a late medical payment, or a missed payment for another card.
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