How much does this suck?

gymnst1013 · October 2009

I got a letter from one of my credit card companies - they are raising my rate from 12% to 27%!! WTF is up with that??? I'm never late with a payment and I always pay more than the minimum - it's one of those "the economy sucks so we're going to screw our good credit customers" things.

Fortunately, the only balance on there is from a student loan that I transferred at a life of balance low rate so nothing is actually going to change for me other than the fact that I will never use that card again! Take that Citibank!

I'm so irritated right now Angry

sail123 · October 2009

Can they even do that? Alter the terms of the credit card agreement unilaterally? If so, that is messed up.

ChrissyMarie007 · October 2009

Try calling and negoitating. You could threated to cancel your cards, usually they will be willing to work with you, rather than lose you as a customer.

ashleyann82 · October 2009

Citibank sucks the big one, my DH canceled his because they did the same thing to him, we ended up getting a card through our credit union with a reasonable rate.

Damnliz · October 2009

That does suck and I would totally be irritated.

gymnst1013 · October 2009

sail123:
Can they even do that? Alter the terms of the credit card agreement unilaterally? If so, that is messed up.

Yep, they are "changing the terms of the agreement" or something like that which it says in the original agreement they can do. Not like you can do anything about it when you get a new card or anything. Sucks.

Mrs.Johns · October 2009

That does suck. At least the new laws require them to send you a letter! Before they would have just raised it and not told you.

I might call them to complain and explain your situation. Also- let them know you wont' be using the card with the new rate. They might be able to do something to help you.

gymnst1013 · October 2009

ChrissyMarie007:
Try calling and negoitating. You could threated to cancel your cards, usually they will be willing to work with you, rather than lose you as a customer.

Actually, I am given the option to opt out of the change, close my account and keeping the current terms. They don't care if I cancel so negotiating won't do anything unfortunately.

gymnst1013 · October 2009

Mrs.Johns:

That does suck. At least the new laws require them to send you a letter! Before they would have just raised it and not told you.

I might call them to complain and explain your situation. Also- let them know you wont' be using the card with the new rate. They might be able to do something to help you.

I do plan on calling just to confirm the rate on my balance transfer won't be going up. I may mention it. It's not that I need the card or anything so it's not a huge deal to me. But 27% is freakin criminal.

synchrosally · October 2009

AHHHHH!!! That's a scary number. That totally blows. DH is pissed because my rate is lower, ha ha ha. But we never carry a balance, so it doesn't really matter.

mchupie · October 2009

That is absolutely ridiculous! I can't believe they can do that and get away with it. I would cancel my card.

canthardlywait426 · October 2009

That does seriously suck. Im sorry gym!

CityGirl07 · October 2009

There's some new law going into effect in February saying they CAN'T do that. So banks are doing it now while they still can.

kamck · October 2009

That sucks! My AMEX raised their rate too.

It's so stupid that they are raising rates on their good customers. The rates were stooopid high to begin with!

kilissa · October 2009

Credit card companies are trying to hike the interest on customers because new legislation is coming in February that would stop them from pulling crap like that. It just goes to show that greed never ends with big companies.

smb1974 · October 2009

Chase just did the same thing to us...we went from 13% to 29%...RIDICULOUS!! Called and talked to them, told me the same thing that I could cancel the card and close the account and keep the current terms. I don't want to close the card though because that can hurt your credit rating too, as then we do not have as much avaiable credit. They do not make things fair at all!

Unknown · October 2009

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pisces4410 · October 2009

That really sucks, I don't have any cards through the big banks and I am hoping I can avoid a similar situation.

Just as a bit of advice, I read an article yesterday about reducing the impact on your credit rating when dealing with interest rate spikes. (too bad i cant find it now) The article said the best bet was to look for a new credit card with a lower interest rate and open that before you close the old one. Then when you close the old one, your amount of credit really isnt all that different. Apparently, opening a new account has very little effect on your credit rating and if you have new credit to replace the old, the closing of the account doesnt really affect it in a major way either.

I just thought that was very interesting, because i would have never thought of going about it that way.

heathercara · October 2009

Sucks big time..happened to us too

Blasianlove · October 2009

Wow, that is crazy. But a lot of companies are doing that to get extra money. One of mine raised 5%, but I don't want to close it because I only have two credit cards.

Man, that sucks. Maybe you can work out a deal with them.

Jill070707 · October 2009

Capital One did it to me. :P

Blasianlove · October 2009

Jill070707:
Capital One did it to me. :P

That was the one that did it to me too!

kkghotty · October 2009

gymnst1013:

I got a letter from one of my credit card companies - they are raising my rate from 12% to 27%!! WTF is up with that??? I'm never late with a payment and I always pay more than the minimum - it's one of those "the economy sucks so we're going to screw our good credit customers" things.

Fortunately, the only balance on there is from a student loan that I transferred at a life of balance low rate so nothing is actually going to change for me other than the fact that I will never use that card again! Take that Citibank!

I'm so irritated right now

I have citibank as well and they did the same thing to me!!!! I told them to pound sand and close my account...I have already taken my business elsewhere (at a lower rate than citibank gave me in the first place) and will be transferring my balance. F THEM!!!

kkghotty · October 2009

gymnst1013:
Mrs.Johns:

That does suck. At least the new laws require them to send you a letter! Before they would have just raised it and not told you.

I might call them to complain and explain your situation. Also- let them know you wont' be using the card with the new rate. They might be able to do something to help you.

I do plan on calling just to confirm the rate on my balance transfer won't be going up. I may mention it. It's not that I need the card or anything so it's not a huge deal to me. But 27% is freakin criminal.

I called them as soon as I got the letter and they told me that if I didn't opt out, every charge currently on there would be at the elevated rate. It might be different for transfers though. Double check for sure!!!!

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