Has anyone had their Credit Card interest rate increased?
I have been reading in the news about how the credit card companies are raising the interest rate on people’s credit card without much notice. Most Americans have an outstanding credit card balance and do not have the money to quickly pay off their account in case the interest rate goes up. I read that people who have good FICO scores and credit histories are having their interest rate go up to 30% in some cases.
Has this happened to you or anyone you know?
OK now this makes me mad! I was watching a story on the news yesterday saying the because of the economy right now credit card companines are trying to ride on the backs of people who always pay on time by increasing their interest rates! So we have to pick up the tab for all the people who can’t/don’t pay their fu*king bills on time! UGH!
It is happening more frequently. The credit card companies have been having losses lately, so they are making up for it by squeezing those who can’t pay off their balances.
It’s rotten to the core. As much as I appreciate the credit card convenience, I despise the issuers and all their jerk-you-around- rules.
My Credit Card Interest rate has been 6.5% for years..last month I got a notice that my new rate effective April 1st will be 12%. Needless to say I was furious and called them(Chase) immediately! After getting the run-around for 15 minutes, I was told that because of losses in other areas of their business(home and Auto Loans) their rates were being increased across the board. So making payments on time and maintaining low balances has no bearing on your account at all. It is what the rest of the accounts are NOT doing that will raise your rates. BullS**t no matter how you look at it ! Needless to say I transferred my balances (I have 2 cards) over to another Account with a 0%-6 month introductory rate and 6% after that. If they decide to raise my rate I will do it again..
This has happened to just about everyone I know. My husband and I have excellent credit and we have both had this happen. With the current economy, the major lenders out there like HSBC, Capitol One, WAMU (Washington Mutual), Bank America, etc. are raising their interest rates because it is riskier for the financial institutions to give out credit. Why do you think the housing market is in the mess it is??? People taking out mortgages who had neither the income nor the credit history to get themselves buried on the mortgages they took out. More an more people at this moment are 90 days or more late on mortgage payments, and vehicle repossessions and credit card debt which is 90 days or more past due is at an all time high. This looks like the wave of the future unless the economy turns around and there are hundreds of new jobs. Where I am West Central Florida, in my neighborhood only 2-3 of every 5 adults are employed. That isn’t good.
Most of these people signed credit card agreements in which they
(a) agreed to have their interest rate raised with a corresponding index (adjustable rate cards)
(b) agreed to have their interest rate raised after the initial introductory period expired (teaser rates)
(c) agreed to have their interest rate raised if they violated certain terms in their account agreement, like paying on time and staying under the limit (penalty rates)
This has been the way the business has worked for a long time. Just because a bunch of news outlets decide it makes a good story now doesn’t mean anything has changed.