Changes to Credit Card Fees/Rates

[JT]

It's horrible and greedy what the banks and the credit card companies are doing to consumers and their hard earned money.
Read your bill line by line and check your interest rate to find changes.
A friend of mine is writing to government and to credit card company to file a complaint.
Her rate went from 8% to 28% plus extra fees.
One option to consider are the credit union cards, investigate if you can join, rates and fees.
This won't help the economy...this makes me ill.

 

[atiman]

My sister's card went from 4% to 29%....even though she was never late once. Although, it's probably why.

I also heard that some companies are going to start charging for non-use, too.

Some of our cards have gone up, too. We are making sure that there aren't balances left on them at all.

This whole thing upsets me. Make me mad so much that I don't want their cards, but it's hard not to have credit cards these days. I rarely ever carry cash...almost never.

 

[Amy Steppe]

It's horrible and greedy what the banks and the credit card companies are doing to consumers and their hard earned money.
Read your bill line by line and check your interest rate to find changes.
A friend of mine is writing to government and to credit card company to file a complaint.
Her rate went from 8% to 28% plus extra fees.
One option to consider are the credit union cards, investigate if you can join, rates and fees.
This won't help the economy...this makes me ill.

I had this happen to me and I am livid. Suffice it to say I operate only on a cash basis now.

I was just thinking about how consumers are now the scapegoats for credit card companies.

 

[exer_cited]

I recently had the interest rate on my card go from 7% to 18% just because I used it. Totally absurd...

That being said, when I called to complain about it, they changed it back to 7%, which surprised me!!

 

[JT]

Good for you, Melissa. I hope my friend can get her interest rate retracted back.

 

[dr.mel_PT]

My rate went from 9% to 27%!! I was never late with a payment and I've had the card for 8+ years. I also called and they lowered it to 13%; still not my original 9 but it's better than 27% I guess. But what really got me fuming was, my bill has always been due on the 3rd of the month. I get paid biweekly so I have a payment schedule set up for all my bills. Well, the credit card company decided to change my payments to being due a week earlier without notifying me!!! I guess they were trying to trip me up and be late w a payment so I would have to pay late fees. Too bad for them, I carefully check my online statement about 2-3x a week.

So in addition to the tips above, make sure you check your due dates!!!!!

It really makes me sick with how these crooks are responding to the president's attempt to make things better for us. Between them and the health insurance industry, I'm losing faith in this country quickly.

 

[Beavs]

I am so glad I have a credit union.

 

[martijean1]

We were told it was because our balances were never "paid in full"...Needless to say, within 2 weeks, all 3 were paid and we switched to a "ready reserve" on our business checking accounts...Same thing, still have a Visa checkcard on all accounts.

MJ in MN

 

[Boingo1]

I also heard that if you DON'T use a credit card for a certain amount of time, some are going to charge you. That is what I'm more guilty of!

Unbelievable.

 

[DEEDEE2]

Yup, I had a card that was my 'for emergencies' card. I had an interest rate of 3.9 and a limit of $10,000.00. One day I get my statement and my interest has gone up to 29.9 and my limit was down to $350. So I call the card thinking someone somewhere had made a mistake and it turns out that since I hadn't used the card in over a year they decided to punish me by making these changes. I asked the lady on the phone, 'Do you really think I would us it now?!'. I told her to cancel it and she put me on hold to try to save the account. She came back, said she had run a credit check and my account was back up to a $10,000.00 limit. I asked her about the interest. She said it was still 29.9. I said cancel the card. She put me on hold, when she came back she said she had gotten me a limit increase to $15,000.00 and an interst rate of 8.9. I told her that I had done nothing to lose the interst rate I had and that if she couldn't get it back down to 3.9 then cancel the card. She sounded like she couldn't afford to lose the account (like it might cost her her job) but too bad. I was not going to be punished for being responsible with my credit. I did end up cancelling the card.

 

[kryptychyck]

Beat them at their own game

1. Don't use the cards - at all. They won't make money if you don't carry a balance and you don;t use them for purchases. Essentially - boycot.
2. Start writing to Congress about reform - not for credit cards, but for the credit Scoring methodology.

The reason I bring that up is that I do not think that you should be penalized on your credit score if a bank decides to start charging for non-use if in the past it had not done so. This way you have the option of closing the account without hurting your credit score.

Why do we really need these credit cards? We don't.

 

[JeanneMarie]

I have no idea if any of my credit card finance rates have gone up because I pay them in full immediately when the bill arrives. However, I have heard that some credit card companies are going to start charging a fee for those of us who never keep a balance and pay them off every month. If they do that, then I'll pay it in full except for 50 cents. I refuse to carry a balance because they want extra money from me.

I have several credit cards that were simply cancelled because I didn't use them for a specified amount of time. They were all department store cards, so it isn't a big deal, but that seems kind of odd to me. Clark Howard says it does hurt your credit rating briefly when cards are canceled like that though.

Those of you who have quit using credit cards, or don't use them in the first place.... how do you pay for things like airline tickets, book hotel rooms (they require a credit card to book in advance) and other items like that? I don't think there is any way I could ever quit using my main credit card.

Also, a couple of my main cards are still giving me rewards points that translate to cash or Vegas comps. I really like this perk.

 

[Beavs]

Did I mention how awesome most credit unions are?

Also, people should know that in many states insurance companies are also checking your credit score to determine your rates. IMHO that should be ILLEGAL!!!

 

[Jann]

Those of you who have quit using credit cards, or don't use them in the first place.... how do you pay for things like airline tickets, book hotel rooms (they require a credit card to book in advance) and other items like that? I don't think there is any way I could ever quit using my main credit card.

Also, a couple of my main cards are still giving me rewards points that translate to cash or Vegas comps. I really like this perk.

Debit card.
I also like perks!

 

[JeanneMarie]

Debit card.
I also like perks!

Jann, it is my understanding that it is very unsafe to use debit cards for transactions like that. You don't have the same safety net with a debit card that you do with a credit card. Clark Howard (Atlanta based consumer advisor) advises to never use debit cards for tansactions over the phone or internet.

ETA: I just found this on ClarkHoward.com

"There are a few scenarios where consumers really have to be aware about the dangers of using of debit cards. These include paying for gas at the pump, paying your hotel bill during check-out and doing a car rental. If you use a debit card in any of these situations, you have to know that the bank will put a hold on your account for an amount that exceeds the total of the bill. So though you may only get $10 of gas, the bank may hold $100 -- and if you don't have a lot in your account, you may start bouncing checks. Also, when you use a debit card to pay for something now that you'll get later, you have no recourse if the merchant goes bust or your purchase never arrives in the mail. However you can dispute the charge if you use a credit card. The only time Clark thinks it might be advisable to use a debit card is if you're someone who has been in trouble with credit cards in the past and you habitually go into debt using them. Then the benefits may outweigh the risks."

 

[Fitnessfreakk366]

Did I mention how awesome most credit unions are?

Also, people should know that in many states insurance companies are also checking your credit score to determine your rates. IMHO that should be ILLEGAL!!!

Beavs, how do credit unions work? What can a credit union do for me with the three credit cards I currently have? I'd also like to boycott credit cards plus it would be better for us all around to get away from them. I'm a little lost on credit unions. I thought they were a glorified "savings account".

 

[Liann]

This is SO true. I have been severely burnt using a debit card at a hotel and a rental car agency. My bank account was essentially drained due to an error in both situations and all my bills started bouncing. I will NEVER use a debit card now for anything other than groceries or in store purchases. You can really get screwed since the funds come straight out of your bank account. If there is a mistake, you can usually still get your money back, but at the cost of having bounced checks and payments that did not go through in the meantime. It can be disastrous - speaking from experience.

Jann, it is my understanding that it is very unsafe to use debit cards for transactions like that. You don't have the same safety net with a debit card that you do with a credit card. Clark Howard (Atlanta based consumer advisor) advises to never use debit cards for tansactions over the phone or internet.

ETA: I just found this on ClarkHoward.com

"There are a few scenarios where consumers really have to be aware about the dangers of using of debit cards. These include paying for gas at the pump, paying your hotel bill during check-out and doing a car rental. If you use a debit card in any of these situations, you have to know that the bank will put a hold on your account for an amount that exceeds the total of the bill. So though you may only get $10 of gas, the bank may hold $100 -- and if you don't have a lot in your account, you may start bouncing checks. Also, when you use a debit card to pay for something now that you'll get later, you have no recourse if the merchant goes bust or your purchase never arrives in the mail. However you can dispute the charge if you use a credit card. The only time Clark thinks it might be advisable to use a debit card is if you're someone who has been in trouble with credit cards in the past and you habitually go into debt using them. Then the benefits may outweigh the risks."

 

[Miss Lee]

I have no idea if any of my credit card finance rates have gone up because I pay them in full immediately when the bill arrives.

Ditto!

However, I have heard that some credit card companies are going to start charging a fee for those of us who never keep a balance and pay them off every month. If they do that, then I'll pay it in full except for 50 cents. I refuse to carry a balance because they want extra money from me.

Thanks for the heads up! I hadn't heard this but I'll be paying close attention from here on out. This would make me very angry!

Clark Howard says it does hurt your credit rating briefly when cards are canceled like that though.

I swear by Clark Howard and Dave Ramsey!

Those of you who have quit using credit cards, or don't use them in the first place.... how do you pay for things like airline tickets, book hotel rooms (they require a credit card to book in advance) and other items like that? I don't think there is any way I could ever quit using my main credit card.

I would be totally lost without my credit cards. I have two and I use them both. I charge every single thing I buy and I pay the bill in full every month. It's a great and easy way to keep track of where your money is going, and it also gives you a certain degree of protection.

Also, a couple of my main cards are still giving me rewards points that translate to cash or Vegas comps. I really like this perk.

Ditto!! The perks aren't quite as good as they used to be, but anytime you get something back it's worth it!

I have no clue what the perks are for using a debit card, or as Clark Howard calls them, "fake credit cards". I absolutely NEVER use mine!

When it comes to my credit cards there are certain rules I live by:
1. I pay the bill IN FULL every month.
2. I check my statement online every couple of days to keep track of my balance and to monitor for fraudulent charges.
3. I will not allow my charges to exceed my ability to pay the bill IN FULL every month.
4. I do not buy things I can't afford in order to support a lifestyle.

 

[Jann]

Jann, it is my understanding that it is very unsafe to use debit cards for transactions like that. You don't have the same safety net with a debit card that you do with a credit card. Clark Howard (Atlanta based consumer advisor) advises to never use debit cards for tansactions over the phone or internet.

ETA: I just found this on ClarkHoward.com

"There are a few scenarios where consumers really have to be aware about the dangers of using of debit cards. These include paying for gas at the pump, paying your hotel bill during check-out and doing a car rental. If you use a debit card in any of these situations, you have to know that the bank will put a hold on your account for an amount that exceeds the total of the bill. So though you may only get $10 of gas, the bank may hold $100 -- and if you don't have a lot in your account, you may start bouncing checks. Also, when you use a debit card to pay for something now that you'll get later, you have no recourse if the merchant goes bust or your purchase never arrives in the mail. However you can dispute the charge if you use a credit card. The only time Clark thinks it might be advisable to use a debit card is if you're someone who has been in trouble with credit cards in the past and you habitually go into debt using them. Then the benefits may outweigh the risks."

Oh my. Thanks for information. I use mine a lot....

 

[dr.mel_PT]

Beavs, how do credit unions work? What can a credit union do for me with the three credit cards I currently have? I'd also like to boycott credit cards plus it would be better for us all around to get away from them. I'm a little lost on credit unions. I thought they were a glorified "savings account".

I'd like to know this too. I'm trying not to use my credit card as much but I am afraid of closing the account and it ruining my credit score (which doesn't make sense to me because you still have a credit HISTORY so why can't you close a card, esp if the company backing it is ripping you off?!).