Anyone have their Credit Card Interest Rate rise suddenly for no reason? (pay, debts)
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My brother is one of those foolish people who has a large balance on his credit card account and pays only a little above the minimum each month. He tells me he is going to pay off his credit card when the economy improves and he is able to make good money.
He has a very good FICO score (credit rating) and always pays his bills on time but owes about $15,000 on one credit card. Last month they raised the interest rate on his Bank of America Visa Card to 29% from 13%. He is not late on any bill and when he called to complain, they told him it was a business decision based on the current economy. Now he owes a ton of interest each month.
This has been talked about on the news and various sources. I think it is called universal default and has nothing to do with making payments. They can decide you have too much credit, too many cards or on a whim it seems, and all your cc's may increase your interest rate.
Totally unfair but in one show they pointed out in the fine print where it was allowed. It is not a loan but a revolving line of credit. So each month they can change the rules, pretty much.
I've been reading that the banks are tightening up and upping rates.
Remember, fees and interest are "income" to the bank. And lord knows they need income these days.
Location: Georgia, on the Florida line, right above Tallahassee
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Years ago, my credit card company raised my rates...from like 7 to 27 percent. It was some sort of amazing number. I had *excellent* credit.
Knowing that it must be an error, I called them.
"Hello, it seems you have raised my rates."
"Why, yes. We raised your rates."
"Pray tell, why did you do that?"
"Because we felt like it."
I swear to God that is what she said, or is a reasonable facsimile.
"Erm, you raised my rate because "You felt like it?"
"That's correct."
"Ok, well - perhaps you should lower my rate back to where it was."
"Why should be do that?"
"Because I feel like you should."
Needless to say, they didn't lower my rate. I sent them a check for the $100 bucks or whatever I had on there. I then called to cancel the card.
"Hello, I'm calling to cancel my card."
"Why?"
"Because you raised my rates, that's why!"
"Oh, we weren't aware you were going to cancel your card."
"Cancel please."
"But..."
"Cancel it, thanks!"
"Bu-bu-bu-"
"Cancel it now!"
I think I had to tell them to cancel it like 5 times.
My brother is one of those foolish people who has a large balance on his credit card account and pays only a little above the minimum each month. He tells me he is going to pay off his credit card when the economy improves and he is able to make good money.
He has a very good FICO score (credit rating) and always pays his bills on time but owes about $15,000 on one credit card. Last month they raised the interest rate on his Bank of America Visa Card to 29% from 13%. He is not late on any bill and when he called to complain, they told him it was a business decision based on the current economy. Now he owes a ton of interest each month.
Has anything like this happen to you?
Yes, it has. I also have a good FICO score and at one time had a large amount of debt split between two cards. In my expirience it was Chase visa's interest rate that suddenly skyrocketed although I always paid on time and paid more than the minimum. They also said the hike was a business decsion, but also stated that the hike applied only to cardholders who carried large "at risk" balances. I don't get how they can fairly access who is at risk-would'nt the risky cardholders be the ones who pay late or have missed payments -even on smaller balances.Not to mention the fact they are the ones setting the limits.
Anyway, with a quickness I found a new card that offered 0% intrest for a year on balance transfers.
I once had a Bank of America card. The intrest rates seemed high before the economy got bad, and they have some shady fees. I continue to bank there, but won't have a line of credit through them agaain.
Sounds like your brother is learning the hard way why one shouldn't put themselves in credit card debt, or rely on credit in the first place. History repeats. Many people learned with the Great Depression to not use credit, now it seems more will either learn or hurt themselves more.
I had a balance on a Mastercard and they bumped the interest up something like a percent. I called and said I could get a lower rate with my other card, but they wouldn't lower it, so I transferred it to Visa without even bothering to ask about a discount.
My next Visa statement went up 4%, and when I called them, they said they couldn't do anything for me. They had just decided to raise the rate.
I called up MasterCard and they offered 2.9% until paid in full if I'd transfer it back....
You get those letters in the mail for application for new credit card at 0% for six months. At the end of 6% you transfer all debts to another credit card (another application that arrives in the mail) that charges 0% for another six months, etc. etc.
He has a very good FICO score (credit rating) and always pays his bills on time but owes about $15,000 on one credit card. Last month they raised the interest rate on his Bank of America Visa Card to 29% from 13%. He is not late on any bill and when he called to complain, they told him it was a business decision based on the current economy. Now he owes a ton of interest each month.
Thinking about this from an investor's standpoint, they're killing off a profitable customer for short term gains. It makes me wonder if they're so short on cash that they need to force people to transfer balances to shore up their finances.
You get those letters in the mail for application for new credit card at 0% for six months. At the end of 6% you transfer all debts to another credit card (another application that arrives in the mail) that charges 0% for another six months, etc. etc.
Just don't get in the habit of doing this or else your FICO score will be HORRIBLE!
As others have said you CAN call and negotiate and hopefully they will lower your rate. Even if they have not raised your rate go ahead and call and ASK for a lower rate.
Years ago I saw some special on tv about credit cards that gave out info on banks that offered lower rates all the time and we applied for one I found that had a set % FOR LIFE!!! We still have that card and they CAN NOT raise the interest rate. Been the best credit card we have ever had. Do some research on banks that offer low credit card rates ALL OF THE TIME and not just for an introductory period. Apply for THOSE instead.
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