I think credit card cos. are going insane!

[LauraMax]

I have a Cap One MC w/a 14% interest rate. Not a great rate, but not so bad either.

Today I got a letter that they were raising my rate to 24.9%!!!!!!!!!!!! What the flying fudge? I am paying that sucker off next week & never using it again!

I got a similar letter two weeks ago from Home Depot. I'm paying that off too, but I don't know if I can live without my HD card.

 

[horseshowmom]

That sucks! I guess they are all rushing to get rates jacked up before the new bill passes. And it sounds as if annual fees and whatever other fees they can invent will be going insane to make up for some of the other caps. Banks suck!!!

 

[hiitdogs]

Don't even get me started on credit cards and banks! They increased my rate by 16 %, negating on the pay off plan that was in place at a low interest rate. Didn't even give a reason, just "informed" me.

I am sure glad they all took the bailout money from the tax payers but who is going to bail out those average joes who are also going through a tough time? Ummmh, anyone, Bueller, Bueller?? Didn't think so!

 

[andtckrtoo]

Chances are if you call to complain, they will lower the rate again. They don't want to lose credit worthy customers. If they don't, consider getting a major bank card where they will allow you to transfer balances for 0% interest for 1 year - that's a good deal - Bank of America did this for me.

What is really scary is that they do not HAVE to inform you, so make sure you look carefully at each bill and monitor your credit through something like that annoying www.freecreditreport.com. My husband had his credit drop by 100 points and his credit availability severely curtailed because Wells Fargo charged him a $5 early pay off fee when he paid off a balance on an loan and never told him. They reported him to the credit bureau because he was 30 days past due on the $5. We have our mortgage through Wells Fargo (and we live in California - it's not a small mortgage). Fortunately because he does monitor he was able to stop it from doing more damage (Wells pulled out the "Oh MY! We're sorry!" bit and removed the red flag), but it will take 30 days to really clear. Needless to say he's livid and wants to pull the mortgage from Wells.

 

[LauraMax]

Chances are if you call to complain, they will lower the rate again. They don't want to lose credit worthy customers. If they don't, consider getting a major bank card where they will allow you to transfer balances for 0% interest for 1 year - that's a good deal - Bank of America did this for me.

I don't think they will--it's a pretty straightforward pamphlet that says if you don't want the rate increase, to call & let them know, but you wouldn't be able to use the card anymore. You did get a pretty good deal though Christine.

I don't want another cc & I'm not closing my acct--as I understand it if you have a credit account & keep the balance >50% of the limit your credit score improves. So I'll keep the acct (not the card, I've already cut it up & tossed it) just for that reason.

I think I'm doing cash & carry from now on. Or at least until the banking industry is actually accountable to its customers.

Oh BTW the same thing happened to me when I paid off my HD card by phone--I paid off a $1500 balance but wasn't informed there was a $10 charge to pay by phone. Because yeah, I'm gonna pay off $1500 but not the $10 fee. Jesus. I never looked at my bills after that b/c I assumed there was a zero balance. Next thing I know I'm in collections.

 

[Beavs]

I got myself an awesome credit union and never looked back. Bank of America can sit on it!

 

[Gayle]

I got myself an awesome credit union and never looked back. Bank of America can sit on it!

ITA. I *heart* my CU.

 

[carres1973]

A CC company jacked my DHs MC up to almost 30%!!! When we called to complain, they said it was the going rate and there was nothing they can do! We didn't have any late or missed payments either! Unfortunately, we can't just pay it off but are directing larger payments toward that card to get rid of it quick!

Carrie

 

[spyrosmom]

Yup, Citibank jacked me up a couple months ago. I was below 10% FIXED, mind you. And then I got a notice they were raising to 15% and I could take it or close the card, and pay it off the by the end of the year. I called to ask why and they said it was nothing I did (I've had the card 12 yrs, never been late) but bc of all the other people defaulting, they were raising rates?!?!? WTF?!?!?!?!? We settled on putting me at an adjustable rate (eeeeeK) but I am hovering just over 10% now. If the feds raise the interest rates, I'm gonna be screwed. Talk about an incentive to pay that baby off. I had it paid off once, and then messed up and now it has a big balance. I don't use it any more, and I am slowly but surely making a dent. But yes, I was so happy to hear that I didn't do anything wrong, but I am getting penalized

Nan

 

[PhyllisG]

I had my rate raised by Discover. They said no more fixed rates. All cards will have variable rates. I told them to close the account and I would pay off the balance and that I was sorry to have to drop them as I had liked Discover. They transferred me to another person who immediately lowered my rate to less than it is now but it will be variable. I always pay off my cards each month but these past months I had a sick cat and car repairs. They want people to shop to stimulate the economy but how to do that when cc companies are charging exorbitant rates. It really is usury and I thought that was against the law. I saw a senator on TV who said the banks "own" the congress. Why is that not a surprise.

 

[WeatherGirl]

I called to ask why and they said it was nothing I did (I've had the card 12 yrs, never been late) but bc of all the other people defaulting, they were raising rates?!?!? WTF?!?!?!?!?

Yes, I was just reading about this- apparently, the plan is to raise rates for even the best credit customers, as a way to recoup all they have lost/will lose from bad customers. What a great "Thank You!" for being responsible with my money and credit... grumble, grumble.....

 

[measuredoak]

Yes, I was just reading about this- apparently, the plan is to raise rates for even the best credit customers, as a way to recoup all they have lost/will lose from bad customers. What a great "Thank You!" for being responsible with my money and credit... grumble, grumble.....

Yup, Bank of America did this to me. Their notice actually stated it was raising interest rates to increase revenue so I opted out; cut up my card & so I maintain the same rate 7.99% but no longer use that card. I've never been late or over my limit but I've had my rates increase. Only good thing about this whole mess is I am spending less & paying off my cards as fast as possible.

 

[moni_stout]

I heard on the news that many credit card companies also plan to do away with the 30 day grace period and start charging interest the day of the purchase. I pay off my credit card every week on Friday payday. If they do away with the grace period I guess I'll go back to using my debit card and cash. I just hate writing all the little debits in the checkbook.

Monica

 

[spyrosmom]

You don't want to be closing these cards. The depth of your credit history accounts for nearly a 1/3rd of the factoring of your credit score. The mix of credit (revolving, installment) accounts for about another 1/3rd. You have to have an active mix, and it has to have a history. It helps show that you can handle more than 1 type of bill. Of course this sucks, bc then you are forced to play the card company's games. You start closing long standing accts and you can really mess up your credit score. Better to keep the card, use it once a month to fill up the gas tank, and then immediately pay it off. It keeps the card open and active, and if you are not paying any annual fees, doesn't cost you anything.

Nan

ETA: Also when they told me I could opt out, I would have 1 yr to pay off the card before the balance was written off, but I couldn't use the card anymore. Carrying a closed card w/ a bal is bad news for your credit, and there was NO WAY I was gonna pay that baby off in a year. The bal is waaaaay too far up there (yes, I know better - bad judgement on my part). I wasn't going to let them write off the remainder at the end of the year. I work too hard to keep my credit score up there for them to tank it. I guess I have to pay their silly, unfair interest rates.

 

[Ffte]

I heard on the news that many credit card companies also plan to do away with the 30 day grace period and start charging interest the day of the purchase. I pay off my credit card every week on Friday payday. If they do away with the grace period I guess I'll go back to using my debit card and cash. I just hate writing all the little debits in the checkbook.

Monica

Oh Crap!! I hadn't heard that one yet. WTF!!! I'll be cutting up all my credit cards in a hurry if they do that.

 

[andtckrtoo]

Yup, Bank of America did this to me. Their notice actually stated it was raising interest rates to increase revenue so I opted out; cut up my card & so I maintain the same rate 7.99% but no longer use that card. I've never been late or over my limit but I've had my rates increase. Only good thing about this whole mess is I am spending less & paying off my cards as fast as possible.

Bank of America did this to my DH. He called them and they readjusted it. I think a lot of the banks are just seeing what they can get away with.

 

[SirenSongWoman]

I should be out of my financial mess in about a month. Once that's done it's debit-or-forget-it. I'll NEVER be a slave to the whims of a bank again. To say I'm filled with bitterness and resentment towards our banking fat cats doesn't even begin to express what I feel. People say you have to have credit to get credit but when you accept a credit card the issuer OWNS you.

And while I am thrilled someone's finally taken action against Those Monsters I do not understand why they couldn't get that bill pushed through immediately. Still, the fact that the banks are taking advantage of their customers until the bill goes into effect will, I believe, backfire on them. People who have little debt will pay off their credit cards and never use them again and people with a great deal of debt will file chapters 7 and 13. It will be a nationwide "Backatcha." And it will serve their butts right.

Hard to believe I had a credit score over 800 just two years ago. My, how things change.

 

[Beavs]

Yes, I was just reading about this- apparently, the plan is to raise rates for even the best credit customers, as a way to recoup all they have lost/will lose from bad customers. What a great "Thank You!" for being responsible with my money and credit... grumble, grumble.....

Actually, the credit card companies have been raking in the money hand over fist for many moons. Now that they have our tax dollars to bail them out they are doing great and will continue to do with all of their little tricks of the trade (how convenient since many have lost job and use the cards to pay the necessities). I think the take home message is that we Americans need to reign in our rampant spending and "feed the pig" http://www.feedthepig.org/ Think about it before the next Cathe pre-sale.

 

[Peaceful Rainbow]

I got myself an awesome credit union and never looked back. Bank of America can sit on it!

Ditto! I've been with my credit union for at least 25 years and we have all our accounts there. Last fall we got letters saying because of the amount of money we have with them they were lowering our rates and they have stayed there.

 

[dr.mel_PT]

I don't think they will--it's a pretty straightforward pamphlet that says if you don't want the rate increase, to call & let them know, but you wouldn't be able to use the card anymore.

my cc company sent me this same pamphlet but i called anyway. my rate jumped from 9% to 25%!!!!!! i was fuming so i called to see what i could get away with. i reminded them how ive been a customer for 6 years, never had a late payment EVER, and they lowered it to 13% for me. try to call anyway and see if theyll do you a favor for being a good customer.