Thread: Credit card companies are changing your interest rate.

Many, if not most, credit card companies are doing that-

There is a rule change coming- passed into law a few months ago. the law change is that whatever the rate was when you charged it, that is the rate that they must hold for the duration. But the law doesn't go into effect until , I think, October. So between now and then, card companies are jacking up rates.

My USAA card, which had been a varible prime + 2.9, sent me a letter in December, saying they were changing the "prime + 2.9" rate, to a minimum of 8.9%.

I immedately paid off the entire balance by switching it to a home-equity line of credit, at 3.9%. Then, I told them thanks- but I won't be using a credit card anymore. too much hassle.

When October comes around- I might consider it again, but in the meantime, I want to keep a zero balance on the credit card while waiting for the new laws to take affect.

Watch what your credit card companies do- and look for alternatives, so you don't get socked with new higher rates unexpectedly.

I had my Capital One card canceled by them due to inactivity. So, be careful. I personally did not care since I had not used the card since I paid it off, but if you want to keep the account, maybe you should charge a small amt and then pay it off before any fees accumulate. Just a suggestion.

Yes- do think about the impact on your credit score if you close an account-

Some people say the best thing is to leave the line of credit open, but pay it off in full.

Here is one article that discusses whether or not to leave a credit card open-

http://www.bankrate.com/brm/news/cc/...O_score_a1.asp

It is some good information to consider.

Good FICO score means you get the best rates when you DO have to exercise credit- like getting a home loan or auto loan.

Bank of America just dropped my available balance from 12k to 6k. I mailed a letter to them demanding to raise it back or close my account immediately. At 6k that means I should only use $1800 to not affect my credit score. Seriously $1800 is not enough to play around with or move money around.

I don't recommend closing any accounts as it may affect your credit score. I don't really need them. My primary card at USAA I have 30k at 6%. I hope it doesn’t change. It was as low as 4.5% but they sent a letter a few months back saying it’s going to 6%. I would be screwed if I got a letter saying they are dropping my available as I plan to charge 15k on a move pretty soon; Without the credit, it wouldn't make things much harder to do.

I don't really need mine either. I am probably at a later stage in my life than most on this board, so my focus is towards retirement and getting debt free. And I do still have other cards if I were to really need them.

Originally Posted by Show-me

Credit card companies are changing your interest rate. Consumer beware!

Just read a notice that I received from the bastards at Bank of America and they are informing me that along with other increases and new fees they will be raising my interest rate to 10.50% plus a variable prime. That would make it, under the current prime, 14.50%.

ROFLMAO! Just lost another customer boyz!

Fine print sez you can opt out and keep the current rate but you can not use the card or you automatically go to the new and improved rate. Some how that just makes me .

Bank of (the illegal immigrants in) America is trying to make up for giving accounts and credit cards to illegal immigrants who are now not making their payments. I closed all accounts I had with them years ago and went to my credit union.

Bank of America? You mean, Zero Percentage rate but don't look at the ** and the little teeny weeny letters. Oh yes, just transfer your accounts to us at 0% until 2010.

My bill is so confusing with so many "introductory" special rates, I gave up and opened up a credit card with my credit union. I *think* credit card purchases are 14%+, checks 20%+,
And if you mess up on that introductory rate and you forget a monthly payment on that balance transfer or you end up overdrawn because they changed your available credit, how does 23%+ feel?

"...but if you mess around, hey you gotta pay! Stop sniveling! You're gonna make B of A a rich man!" (apology to the Pretenders)

The only thing they *haven't* changed is my available credit. Probably because I don't have anything on it. According to what I hear, they only seem to change it if you have a balance.
Hey, they just gave a credit card to *anyone* legal, illegal, all you needed was a mailing address. I probably could have applied for one for my invisible hamster. Now they are just trying to keep their captive audience.

If Obama really wants to do something....to get more people liking him...which he seems to do now and then is to get some control of the credit card companies who do whatever they want when they want. They are the most ruthless S.O.B.'s I know of besides towing companies. They are bottom feeders and are much worse than used car salesman. I'm paying my cards off; but use them for airline internet purchases, hotels in foreign countries and rental cars. Otherwise screw them!

Now Chase is doing it!!!
.....Several years ago he accepted a promotional offer to use the bank’s “Lower than Prime” balance transfer checks to move high interest debt to his Chase credit card. The Chase solicitation promised: “No tricks. No gimmicks. Just savings.”

The offer was straightforward. Woods would pay a 3 percent transfer fee and get an amazingly low interest rate of 3.99 percent APR “until the balance is paid off.” Woods says he paid “on time, every time” in order to keep that interest rate.

Woods became an angry Chase customer when he received his January statement and saw a $10 “monthly service charge” had been added. The bank also bumped up his monthly minimum from 2 percent to 5 percent sending his payment from $140 to $300.....
http://www.msnbc.msn.com/id/30111663//

Look what Credit Card Companies are doing to Small Business!

Credit-Card Processors Demand Cash Reserves

In the midst of the worst economic contraction in decades, some small business owners are experiencing an additional—and brutal—cash squeeze, this time at the hands of their credit-card processors. The recession and rising business bankruptcies have prompted giant credit-card companies such as Denver (Colo)-based First Data and Atlanta-based Elavon to demand that some business owners maintain a cash reserve with the processors in order to protect against the possibility that customers may require refunds after the merchants have gone belly-up. Most processing agreements give the transaction giants the right to accumulate those reserves simply by holding back money the merchant is supposed to be paid after a credit-card transaction has cleared, often with little or no warning. ....

http://www.businessweek.com/smallbiz...s+%2B+analysis

Per my comment below, I just noticed that they raised my limit back up to the 12k mark. I guess they didn't want to lose my buisness.

"Bank of America just dropped my available balance from 12k to 6k. I mailed a letter to them demanding to raise it back or close my account immediately. At 6k that means I should only use $1800 to not affect my credit score. Seriously $1800 is not enough to play around with or move money around."