Credit interest rate changes - Financial Management

Sid's Girl · 03-20-2009, 06:09 PM

Got a letter from my credit card today, due to the "extraordinary economic times" they are automatically raising credit rates based on history of the account, how long it's been open etc. My interest rate jumped to 15.9 percent but if I'm more than 3 days late twice in a 12 month period, the rate jumps to 26.9 percent. Holy cow! The only way to opt out of the change is to close the account. I had heard recently on a radio talk show about this happening, the commentator was saying it was seemingly random which clients got chosen. And just FYI, I've had the account for almost 10 years, never late, have excellent credit and thankfully, no balance on the card.

USCGBoxerMom · 03-20-2009, 06:10 PM

I also heard they are raising rates based on where you live. So if people around you are not paying the your rates can go up.

Cobysmom75 · 03-20-2009, 06:11 PM

I can't believe they are doing this.

*skittles* · 03-20-2009, 06:13 PM

wow...glad I've never held a balance on my credit cards.

I'd rather use my credit cards for free stuff like flights or gift cards, but definitely don't want to pay 18% more on my purchases of silly things like mcdonalds or gas. I'd cry.

barre_baby · 03-20-2009, 06:13 PM

Originally Posted by USCGBoxerMom

I also heard they are raising rates based on where you live. So if people around you are not paying the your rates can go up.

USCGBoxerMom · 03-20-2009, 06:18 PM

Here is one article to back up what I said it's not only rates but available credit as well...I am sure I can find others...

http://www.msnbc.msn.com/id/27055285/

Sid's Girl · 03-20-2009, 06:29 PM

Originally Posted by USCGBoxerMom

Here is one article to back up what I said it's not only rates but available credit as well...I am sure I can find others...

http://www.msnbc.msn.com/id/27055285/

Very interesting, thank you! The part that caught my eye...

“If you have a credit score of 700 and up, you should be seeing lower rates now than you did a year ago,” McBride said. “If you find that your card issuer isn’t playing ball, it’s time to shop around.”

I have to look into this more, my score is well above that 700 threshold.

ChelseaC · 03-20-2009, 06:34 PM

wow!!!

rcwant2be · 03-20-2009, 06:43 PM

I got that notice on a card I rarely use. I'm paying its small balance off and leaving it open because I think closing it would lower my credit score. The cc I use regularly is thru my cu, so I don't think I have anything to worry about with it.

DakotaCowgirl · 03-20-2009, 07:08 PM

Call them up and complain. That is what I did. They lowered it. Doesn't hurt.

03-20-2009, 06:09 PM	#1 (permalink)
Sid's Girl Senior Member Join Date: Jul 2008 Location: NJ Posts: 3,426 Classifieds: (0) Activity: 23% Longevity: 23%	Credit interest rate changes Got a letter from my credit card today, due to the "extraordinary economic times" they are automatically raising credit rates based on history of the account, how long it's been open etc. My interest rate jumped to 15.9 percent but if I'm more than 3 days late twice in a 12 month period, the rate jumps to 26.9 percent. Holy cow! The only way to opt out of the change is to close the account. I had heard recently on a radio talk show about this happening, the commentator was saying it was seemingly random which clients got chosen. And just FYI, I've had the account for almost 10 years, never late, have excellent credit and thankfully, no balance on the card. __________________

03-20-2009, 06:11 PM	#3 (permalink)
Cobysmom75 Life is good. Join Date: Apr 2008 Location: Southern California Posts: 10,288 Classifieds: (0) Activity: 0% Longevity: 27%	I can't believe they are doing this. __________________

03-20-2009, 07:08 PM	#10 (permalink)
DakotaCowgirl MilitarySOS Jewel Join Date: Feb 2007 Location: Here...going to Germany Posts: 7,721 Classifieds: (0) Activity: 59% Longevity: 47%	Call them up and complain. That is what I did. They lowered it. Doesn't hurt. __________________ "It is endemic of the current culture that those with large stature are overlooked except by vultures. With no regard to the depth of their souls, the height of their passion, and the beauty of their moments." P.J. Pete http://www.thewomanhood.com/forum/register.php?referrerid=1498[/URL] MacGyver can make Chuck Norris out of duct tape and a spork.

About Us

MilitarySOS Shortcuts

MilitarySOS Help

About MilitarySOS

03-20-2009, 06:10 PM	#2 (permalink)
USCGBoxerMom Senior Member Join Date: Dec 2006 Location: Seattle, WA Posts: 11,078 Classifieds: (0) Activity: 0% Longevity: 50%	I also heard they are raising rates based on where you live. So if people around you are not paying the your rates can go up.

03-20-2009, 06:13 PM	#4 (permalink)
skittles MilitarySOS Jewel Join Date: Mar 2009 Location: Savannah, GA Posts: 2,495 Classifieds: (0) Activity: 92% Longevity: 11%	wow...glad I've never held a balance on my credit cards. I'd rather use my credit cards for free stuff like flights or gift cards, but definitely don't want to pay 18% more on my purchases of silly things like mcdonalds or gas. I'd cry.

03-20-2009, 06:18 PM	#6 (permalink)
USCGBoxerMom Senior Member Join Date: Dec 2006 Location: Seattle, WA Posts: 11,078 Classifieds: (0) Activity: 0% Longevity: 50%	Here is one article to back up what I said it's not only rates but available credit as well...I am sure I can find others... http://www.msnbc.msn.com/id/27055285/

03-20-2009, 06:34 PM	#8 (permalink)
ChelseaC Member Join Date: Mar 2009 Posts: 33 Classifieds: (0) Activity: 0% Longevity: 11%	wow!!!

03-20-2009, 06:43 PM	#9 (permalink)
rcwant2be IMAFOX Join Date: Aug 2007 Location: Seattle Posts: 13,525 Blog Entries: 4 Classifieds: (2) Activity: 0% Longevity: 38%	I got that notice on a card I rarely use. I'm paying its small balance off and leaving it open because I think closing it would lower my credit score. The cc I use regularly is thru my cu, so I don't think I have anything to worry about with it.