Credit Card from 6.9% to 24.25%

BB_TX · Feb 11, 2005

They can raise your % if you have too many credit checks. Say you were considering buying something and the store did a preliminary credit check. Then you changed your mind and decided not to purchase. That still counts against your credit. /forums/images/graemlins/mad.gif Or if you opened a line of credit at say Home Depot but did not purchase anything. Any reason they can find to boost your % puts money in their pockets and there is literally nothing you can do short of paying it in full.
The one about reducing your credit score because you cancelled some cards really makes no sense. /forums/images/graemlins/confused.gif

ByronBob · Feb 11, 2005

First thing I did was go back and check to see if the payment was late. With no reason to raise the rate I was really confused when I called them. Then she goes into the ratio jazz and I realized I was getting the sham. /forums/images/graemlins/mad.gif /forums/images/graemlins/mad.gif

Moved the balance last night. Hopefully tonight it'll be all done. With daily offers coming in I'm in no pressure position to beg them for anything. Don't need Bank One.

JDGREEN4ME · Feb 11, 2005

Guess I better keep my eyes open! The wife and I have a joint card through Bank 1 for the past three years. No hassles and a competitive rate. Thanks for the information...

MadReferee · Feb 11, 2005

In 1996 the Supreme Court decided in favor of CitiBank to deregulate the fees that can be charged by credit card companies. In addition, the states have no control over National Banks who issue the majority of credit cards.

There was an interesting interview on PBS Frontline awhile back regarding credit card companies and how all this worked. A portion of the interview can be read HERE along with other valuable info.

ByronBob · Feb 11, 2005

I had my card for a while also with absolutely no advanced warning that there was a problem. Thats what bothers me but it's just the fact that they didn't increase it to 8.9% or 10.9%. They decided I needed the screws put to me with no issues in the past.
Not the way I like to spend my money.

Robert_in_NY · Feb 11, 2005

My payment to AT&T Universal card got lost last month. I get a notice where my interest rate went up from 10% to 29.24% because of it. After I explain the problem to them, they take the money directly from my account to bring it up to date and then they tell me they don't know if they can drop my rate back down /forums/images/graemlins/mad.gif

I closed the card as I don't need it anyway. I get enough offers for new cards every day in the mail /forums/images/graemlins/crazy.gif I am tired of credit companies taking advantage of people.

cowboydoc · Feb 11, 2005

Credit card companies make very little on the folks who pay them off 

Actually they make alot of money Bob. On most transactions they are making anywhere from 1-4%. How else do you think they afford to pay for airline tickets, discover has a 1% back deal, etc.

kensfarm · Feb 11, 2005

I recently got rid of my AT&T credit card.. they had increased the interest rate.. so I paid the whole thing off. Next month I received a bill for "just interest" on a balance of $187. I called them the next day to find out what the deal was.. how could I be charged interest on $187.00 if my entire balance was 0 for the month. I kept demanding them to show me when my balance was $187.. they ended up eating the interest charge.. but only after letting it go on for another month.. adding more interest.. and getting an additional call from me.

I believe many CC companies purposely code these types of ripoffs into their financial systems to squeeze more $ out of the consumers.

One thing I've done that has helped w/ tracking bill payments easily is on-line banking. It's easy.. safe.. you save money on stamps.. you can set it up for monthly timed payments.. or just use the "one time payments" methods for bills that the $ amount changes. It is often free w/ a specific balance.

If you are charged a late fee.. you can go online.. see when the payment was withdrawn from your account.. and see the day it was delivered to the company.

dmp437 · Feb 11, 2005

( I would call the Attorney General and ask them if that was legal for them to do. I don't think it is. )

You are incorrect, it IS legal.
I watched the Frontline program "Secrets of the Credit Card" that was referred to earlier in this thread about two weeks ago. I sat there rivetted, on the edge of the couch not believeing that their way of doing business is even allowed, but it is. In fact it is protected by an agency of the federal government known as the O.C.C., the Office of the Currency Controller.
They can at any time raise your interest rate to any amount they wish for any number of reasons. The current maximum rate charged by any company is 35%, but there is no limit so it will go higher.
If you have some extra time go through the Frontline area of the PBS website and watch for a re-broadcast of the show. It's an hour long and is VERY informative. I already knew quite a bit of it (I went through it with MBNA) but learned a lot more none the less.

dmp437 · Feb 11, 2005

( Credit card companies apparently can do this. Even if you have a credit line of X dollars doesn't mean you can get near it without fear. So they make the situation worse by increasing your interst rate by 3x???
)

I compare it to the old days in England when you couldn't pay your debts they threw you in prison. How's that going to help? Same concept when they increase the interest rate to an absurd level.