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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Credit card companies raising your intrest rate?
Ok...so DH gets a letter from Wells Fargo saying that they were raising his interest rate on his credit card.
Dh called to find out why, b/c he has never been late on payments and has good credit.
They said its b/c the economy is so bad, and the market is calling for an intrest rate hike???
Dh said "so b/c your losing money, you have to raise my intrest rate."...he then hung up on the guy....but seriously, can they do that???
I told him to cancel the card...it makes no sense.
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Posted 3/31/08 6:30 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
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Re: Credit card companies raising your intrest rate?
happens all the time. 
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| Posted 3/31/08 6:31 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Credit card companies raising your intrest rate?
your other credit accounts can affect other accounts.
you should have a chance to opt-out...(keeping your exsiting rate but closeing the account)
make sure you read everything as they "could" be changing your non-default apr rate...
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| Posted 3/31/08 6:39 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit card companies raising your intrest rate?
i havent gotten a letter - but i dont have any CC debt except for 0%....
they are allowed to increase his rate if he is late on ANYTHING -but knowing you I doubt this is the case and I would tell him to call back and speak to a mgr. tell them that you are going to transfer the balance unless they keep your rate the same.
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| Posted 3/31/08 7:40 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Credit card companies raising your intrest rate?
I read on msn that some companies are doing this for no reason
MBNA being one of them
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| Posted 3/31/08 7:42 PM |
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Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
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Re: Credit card companies raising your intrest rate?
just happened to us! We only have one cc....we have a high credit line and about 3K on it right now.
Never late on a payment. Use the card each month and make decent size payments on it....
we were at a 4.9, now we are at a 10%
I have had the card since 1999.
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| Posted 3/31/08 7:47 PM |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Credit card companies raising your intrest rate?
Yes they can do that.
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| Posted 3/31/08 8:38 PM |
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luckysmom
Yes it is! Going as planned:)
Member since 6/07 5339 total posts
Name:
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Re: Credit card companies raising your intrest rate?
Wow. My citicard actually lowered my interest rate from 10.49% to 8.24%. I thought the rates were dropping.
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| Posted 3/31/08 8:43 PM |
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babymakes3
Almost there!
Member since 7/06 7376 total posts
Name:
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Re: Credit card companies raising your intrest rate?
My credit card was just raised from 8 to 9% due to the economy. There isn't much on it but it's so annoying! 
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| Posted 3/31/08 9:34 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Thats strange because I just had a CC company raise my CREDIT LIMIT.
But yeah interest rate changes happen all the time.
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| Posted 3/31/08 9:47 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: Credit card companies raising your intrest rate?
how do you have cards with such low interest rates? Mine are 11% and 13%
but I also pay my CCs in full so it doesn't really matter.
still...
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| Posted 3/31/08 9:50 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Credit card companies raising your intrest rate?
Posted by luckysmom
Wow. My citicard actually lowered my interest rate from 10.49% to 8.24%. I thought the rates were dropping.
mine is also- b/c it is prime plus what ever
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| Posted 3/31/08 10:57 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: Credit card companies raising your intrest rate?
paying everything in full sometimes is the problem. it doesn't register with the credit agencies as obtaining and then responsibly paying off your debt if you use a credit card as a charge card.
This is especially true if you never had a car loan or mortgage to estabilish a track record of responsibly paying down debt.
I haven't checked out my current interest rates and whether they shot up recently, but generally, I'm somewhere at an 8% mark with my credit cards. I know they can shoot us a letter and increase it whenever it suits their fancy.
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| Posted 3/31/08 11:12 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: Credit card companies raising your intrest rate?
Posted by wannabemom
paying everything in full sometimes is the problem. it doesn't register with the credit agencies as obtaining and then responsibly paying off your debt if you use a credit card as a charge card.
This is especially true if you never had a car loan or mortgage to estabilish a track record of responsibly paying down debt.
I haven't checked out my current interest rates and whether they shot up recently, but generally, I'm somewhere at an 8% mark with my credit cards. I know they can shoot us a letter and increase it whenever it suits their fancy.
I pay my CC's that have the 10% & 13% interest in full...
I have other CC's that I use for transfer balances with low aprs... and I pay them off wthin the time alloted or the specific interest rate....
I have excellent credit... my FICO score is about 750.
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| Posted 3/31/08 11:21 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: Credit card companies raising your intrest rate?
yeah, in that case you should negotiate to lower your interest rates... you can call them up with all those cr@ppy offers you get in the mail and threaten to close your acct and get one of those with low rates if they don't 'work with you'
you'd be amazed how well that works, especially if it's a card you have a balance on......
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| Posted 3/31/08 11:23 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Posted by wannabemom
paying everything in full sometimes is the problem. it doesn't register with the credit agencies as obtaining and then responsibly paying off your debt if you use a credit card as a charge card.
This is especially true if you never had a car loan or mortgage to estabilish a track record of responsibly paying down debt.
These are huge credit myths and incorrect statements.
First off, credit card companies report your payment history no different if you pay in full every month or you carry a balance. They all show up as either [OK] (paid on time) or if you don't pay you get tagged with a delinquency (30, 60, 90, or 120day late note).
Also, just because somebody never had a car loan or mortgage to show payment history doesn't mean that nothing is being reported on their credit report. This is so untrue.
If you have a credit card, charge card, line of credit (checking plus or overdraft protection), and either pay it off every month (credit cards), or simply keep the account open (lines of credit with zero balances) you are building credit history and/or payment history perfectly.
You definitely DO NOT need to apply for more credit or purposely carry a balance or take out a loan just to "build credit". This is not the way credit works.
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| Posted 4/1/08 12:09 AM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: Credit card companies raising your intrest rate?
Posted by ave1024
Posted by wannabemom
paying everything in full sometimes is the problem. it doesn't register with the credit agencies as obtaining and then responsibly paying off your debt if you use a credit card as a charge card.
This is especially true if you never had a car loan or mortgage to estabilish a track record of responsibly paying down debt.
These are huge credit myths and incorrect statements.
First off, credit card companies report your payment history no different if you pay in full every month or you carry a balance. They all show up as either [OK] (paid on time) or if you don't pay you get tagged with a delinquency (30, 60, 90, or 120day late note).
Also, just because somebody never had a car loan or mortgage to show payment history doesn't mean that nothing is being reported on their credit report. This is so untrue.
If you have a credit card, charge card, line of credit (checking plus or overdraft protection), and either pay it off every month (credit cards), or simply keep the account open (lines of credit with zero balances) you are building credit history and/or payment history perfectly.
You definitely DO NOT need to apply for more credit or purposely carry a balance or take out a loan just to "build credit". This is not the way credit works.
I've never had a loan... No student loans, no car loans... when I bought a car, I took out a loan and then paid in full...
I have excellent credit b/c I use my credit cards and I use them well (hahaha)
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| Posted 4/1/08 8:22 AM |
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sunflowerjesss
Mommy to 3!
Member since 10/05 20369 total posts
Name:
Jesss, duh.
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Re: Credit card companies raising your intrest rate?
I have heard of them jacking up interest rates as well.
DH and I paid off our last two credit cards and have no intentions of using them again!
Carrying debt is just not our thing.
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| Posted 4/1/08 8:46 AM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Credit card companies raising your intrest rate?
I work for a financial company (in the CC department)
Your payment history does play a role. Yes we tag if you paid or are 30, 60, 90 days late etc. But people who pay in full are considered a Transactor. Banks don't make much money off these people (even if they spend thousands) since they never pay interest. People who carry a balance are revolvers and these are the people banks want using their cards since it is how we make money. These people tend to get more and better offers (balance transfer or new cards) because banks want them. If they continue to pay at least the minimum payments ontime they will build good credit.
We even tag people who open a 0% balance and payoff before the rate expires. These people are called gamers and after awhile they will stop getting these rates because the comapanies get smart that they are just "using" the cc for the rate.
Having too many credit cards open (if you use them or not) could have a negative impact on your credit.
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| Posted 4/1/08 10:36 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Posted by Jenhos
I work for a financial company (in the CC department)
Your payment history does play a role. Yes we tag if you paid or are 30, 60, 90 days late etc. But people who pay in full are considered a Transactor. Banks don't make much money off these people (even if they spend thousands) since they never pay interest. People who carry a balance are revolvers and these are the people banks want using their cards since it is how we make money. These people tend to get more and better offers (balance transfer or new cards) because banks want them. If they continue to pay at least the minimum payments ontime they will build good credit.
We even tag people who open a 0% balance and payoff before the rate expires. These people are called gamers and after awhile they will stop getting these rates because the comapanies get smart that they are just "using" the cc for the rate.
Having too many credit cards open (if you use them or not) could have a negative impact on your credit.
Interesting insight although I don't agree with your last statement. I know tons of people with over 30 credit cards and over 200k in available credit. They all have scores close to 800 because of their high credit lines and perfect payment history.
It's not the amount of open accounts that hurt your credit, it's the inquiries that are required to open those accounts that ding your scores. After those inquiries go away in two years, your scores go back up.
And as far as what class of consumers there are, I would definitely be in the "gamer" class.
Message edited 4/1/2008 11:10:54 AM.
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| Posted 4/1/08 11:10 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Credit card companies raising your intrest rate?
I'm a gamer too and I have been for many years.
Sorry to hear about the rate going up. That really stinks.
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| Posted 4/1/08 11:28 AM |
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MST9106
My life:)
Member since 6/06 9589 total posts
Name:
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Re: Credit card companies raising your intrest rate?
Yes they are! I have an excellent cradit history and when I saw my rate the other day I almost fainted! I called and they told me they can't lower it bc there are no lower rates available. I of course told them that I will be taking my business elsewhere...
The thing is, CC companies lost a lot of $$ in thsi subprime fall that they have to make it up somehere else!
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| Posted 4/1/08 11:35 AM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Credit card companies raising your intrest rate?
The amount of open line COULD hurt you based on a few factors. Your income for one. And yes the dings eventually go away but your credit needs to recover from that so it technically takes longer than 2 years.
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| Posted 4/1/08 11:46 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit card companies raising your intrest rate?
In my understanding there are a number of reasons opening more accounts can be harmful. One is that the more credit you have, the more toruble you could get yourself into. Also, every new account reduces your average length of credit, which can be a big factor if you are young.
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| Posted 4/1/08 11:53 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Posted by Jenhos
The amount of open line COULD hurt you based on a few factors. Your income for one. And yes the dings eventually go away but your credit needs to recover from that so it technically takes longer than 2 years.
Actually once the inquiry disappears from your report, your scores immeditately increase.
I monitor my credit scores daily and once I see an inquiry drop off my scores typically go up 2-3 points per inquiry removed.
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| Posted 4/1/08 11:55 AM |
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