sam1000
Full Member
Cash: $ 21.05
Posts: 95
Joined: 28 Jul 2005
|
| Interest rate increase |
 |
|
I made a large payment to one of my credit cards this month ($800) and now I've recieved a notice from my credit card that they're increasing my interest rate from 8.99% to 27.99%. Since I paid off a lot of the balance they should actually be lowering my APR not tripling it 
I have never been late ever in my life and my FICO score is 710 last time I checked. I have a total debt of $15,000 now and I'm trying to religiously pay it off but stuff like this really irkes me. What can I do about it?
This APR increase doesn't really affect me since I have only another $500 to pay off the balance on this card and I'm going to do it in two weeks, too bad for the greedy bank 
|
Tue Aug 16, 2005 2:48 am |
|
|
sayyes
Preferred Member
Cash: $ 11.60
Posts: 143
Joined: 02 Jul 2005
Location: Newport, RI
|
Congrats on getting your debt in order.
I would call the bank and threaten to transfer the debt to a lower interest credit card. Your credit score is high enough that they'll want to keep your business and should lower your rate for you.
Reference some offer that you see on TV or get in the mail and threaten to move over to them. With a 10 minute phone call you'll see results, I promise.
Money Blog | Financial Goals Explained | Bargains Online | Refinance
|
|
Tue Aug 16, 2005 3:11 pm |
|
|
efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
|
|
|
|
If he only has $500 to pay off soon, it would not be worth the balance transfer fee. But a polite letter saying you are cancelling the card due to their excessive interest rate may be in order (unless it is the only remaining card without a balance).
One thing to be aware of is that credit card companies now have clauses that regardless of your history with them, they can jack up your rates if you are late or they feel you are overextended "anywhere else".
When consolidating money in my checking account for down payment on a home, the bank was very cordal, even calling me to see if there was anything they could do for me. They inflated the limit on my credit card (over $30k), and have since gradually jacked up the interest rate to 19.99%. But I showed them, I paid off my balance, then used one of their teaser checks at 2.99% for "unlimited time" with $50 balance transfer fee limit. The only other balance not totally paid monthly is a 0% Circuit City purchase (same bank). So it is only costing me about 2% APR net for their money (~ $7/mo).
|
|
Wed Aug 17, 2005 12:14 am |
|
|
sam1000
Full Member
Cash: $ 21.05
Posts: 95
Joined: 28 Jul 2005
|
Thanks guys. I've decided to just keep the card open after paying it since it's not going to affect me and will only decrease my debt to credit limit ratio 
|
|
Sat Aug 20, 2005 3:01 am |
|
|
|
