Daisy Posted October 24, 2009 Share Posted October 24, 2009 UUGH, I was just notified today that our credit card interest rate is changing in December. They are going to a variable rate and the increase is going to be 5 percentage points to 11.9%. That is INSANE. It is something like prime + 8.74%. We have excellent credit. The reason the credit card company gave us was that they needed to increase their profitability. They basically said if we don't like it, we can cancel our card. Let me just state that we don't carry any kind of a balance and this is our ONLY credit card. I'm just wondering if I should bother looking for a lower rate or is that pretty common right now? I'm just not real comfortable with our "emergency" credit card having such a high interest rate. Quote Link to comment Share on other sites More sharing options...
Veronica in VA Posted October 24, 2009 Share Posted October 24, 2009 I would look around. But I have heard some cards, like Bank of America, are going up to 29.99%. Absolutely crazy! Quote Link to comment Share on other sites More sharing options...
olan719 Posted October 24, 2009 Share Posted October 24, 2009 I think it's pretty common that the cc companies are raising rates right now. I might consider looking for a lower rate on a different card, but if you close the existing account you have now, it could hurt your credit score. How long you had existing credit is a major factor in your score. We don't carry balances on our ccs. But we do have two cards that are from local banks, and those interest rates are currently 6.25% and 7%. You may want to look local. I would use these for emergencies (although we have a savings fund, so I hopefully wouldn't need to), and I won't cancel them because we have had them many years. I have two other "rewards" cards that have high interest rates and those are not for emergencies. I only use them to get the rewards, and never pay them one dime of interest. Quote Link to comment Share on other sites More sharing options...
happygrrl Posted October 24, 2009 Share Posted October 24, 2009 We have a few cards, and all of them have sent us the rate increase notices. I am so sorry for people who don't read them and get their rates jacked to the high 20's! You had better believe I am going to call them, and cancel with pleasure (Although I intend to keep one card for emergencies. Which card I keep depends on the responses I get from the calls). Quote Link to comment Share on other sites More sharing options...
Mommyof4ks Posted October 24, 2009 Share Posted October 24, 2009 We have excellent credit, and one of our cards is nearing 20%. It never hurts to look around, but don't expect much. Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted October 24, 2009 Share Posted October 24, 2009 Given what has happened in the credit industry the last year or so, and the reading I've done on it. I have a few thoughts. . . 1) Be proud and glad you don't carry a balance! Woohoo! Best thing ever! 2) You should have at least 3 credit cards from 3 different banks! (They merge, go nuts, die, etc.) 3) Charge something ($10 or so) on each card every 3 months and pay it off right away. 4) Keep the "old" cards active. Don't close your oldest card, unless there is some BIG reason (like they are charging you annual fees!) Most banks are EVIL, IMHO. Quote Link to comment Share on other sites More sharing options...
Guest Sailnet18666 Posted October 26, 2009 Share Posted October 26, 2009 (edited) Given what has happened in the credit industry the last year or so, and the reading I've done on it. I have a few thoughts. . .Simple interest calculator calculation calculators formula loan calculating rate loans equation rates mortgage compound current high savings account home1) Be proud and glad you don't carry a balance! Woohoo! Best thing ever! 2) You should have at least 3 credit cards from 3 different banks! (They merge, go nuts, die, etc.) 3) Charge something ($10 or so) on each card every 3 months and pay it off right away. 4) Keep the "old" cards active. Don't close your oldest card, unless there is some BIG reason (like they are charging you annual fees!) Most banks are EVIL, IMHO. Cool advices. Edited October 26, 2009 by Sailnet18666 Quote Link to comment Share on other sites More sharing options...
tex-mex Posted October 26, 2009 Share Posted October 26, 2009 Dunno if you are with BofA but they just went with a policy to add an annual fee from $30-100 a year for those who have nothing on the credit card. It penalizes those who pay off the card. Very unfair. (Read this on the news -- I don't have a BofA card, btw.) Quote Link to comment Share on other sites More sharing options...
ConnieB Posted October 26, 2009 Share Posted October 26, 2009 Isn't there some major changes coming in the credit card industry early 2010? My brain is sleep deprived, but I am fairly sure I read that the industry is raising rates and beginning to charge annual fees and some are even doing away with grace periods!!!! all because of the new law that Obama's Admin has created. When I'm more awake I'll go try to find it, lol. We pay everything off and haven't carried a balance in years.....our rates were raised from the 8's to now 10.99% and the other card from the 9's to 11.5%.......but honestly, I don't much care and since we've had it forever I don't want to close it. Yes, we'll be screwed if we ever have an emergency and have to make monthly payments instead of paying it off, but I figure whatever that emergency will be is gonna be big enough that I don't think I'll be worrying about 10.99% interest. Now...if they think I'll put up with the 20's that some of you mention.....ummm, no on principal I think I'd have to call and complain. Not sure if the rates I have are low because we've been good customers for such a long time (USAA for 25+ years with the credit card for at least 20 of those years.....Chase for probably 5+ years). The USAA card has a large enough line of credit that we could actually buy a mid-size sedan and still have leftover, lol. So I figure super big emergencies would definitely be covered. The Chase card has $8k line of credit but we only use it because it has rewards attached.....I typically max out the rewards each year....in fact I think I already have this year. I know I've also read that competition for GOOD customers with decent credit is intense....so I would definitely suggest that you call and indicate that you may just have to take your business elsewhere if they don't lower your rate. Oh, but be careful if you do switch cards.....go to someplace like bankrate.com to find out what they're offering, but read the fine print. A lot of cards now start you at a nice low rate, but then if you are late with a single payment it jacks up to 20's. And there are a lot of complaints I'm hearing about these companies tactics for making your payment late.....like you mail it a week before the due date but somehow it doesn't get posted until the day after so now it's late. Another reason I pay online, I can see exactly when payment is made. Quote Link to comment Share on other sites More sharing options...
ConnieB Posted October 26, 2009 Share Posted October 26, 2009 Isn't there some major changes coming in the credit card industry early 2010? My brain is sleep deprived, but I am fairly sure I read that the industry is raising rates and beginning to charge annual fees and some are even doing away with grace periods!!!! all because of the new law that Obama's Admin has created. When I'm more awake I'll go try to find it, lol. We pay everything off and haven't carried a balance in years.....our rates were raised from the 8's to now 10.99% and the other card from the 9's to 11.5%.......but honestly, I don't much care and since we've had it forever I don't want to close it. Yes, we'll be screwed if we ever have an emergency and have to make monthly payments instead of paying it off, but I figure whatever that emergency will be is gonna be big enough that I don't think I'll be worrying about 10.99% interest. Now...if they think I'll put up with the 20's that some of you mention.....ummm, no on principal I think I'd have to call and complain. Not sure if the rates I have are low because we've been good customers for such a long time (USAA for 25+ years with the credit card for at least 20 of those years.....Chase for probably 5+ years). The USAA card has a large enough line of credit that we could actually buy a mid-size sedan and still have leftover, lol. So I figure super big emergencies would definitely be covered. The Chase card has $8k line of credit but we only use it because it has rewards attached.....I typically max out the rewards each year....in fact I think I already have this year. I know I've also read that competition for GOOD customers with decent credit is intense....so I would definitely suggest that you call and indicate that you may just have to take your business elsewhere if they don't lower your rate. Oh, but be careful if you do switch cards.....go to someplace like bankrate.com to find out what they're offering, but read the fine print. A lot of cards now start you at a nice low rate, but then if you are late with a single payment it jacks up to 20's. And there are a lot of complaints I'm hearing about these companies tactics for making your payment late.....like you mail it a week before the due date but somehow it doesn't get posted until the day after so now it's late. Another reason I pay online, I can see exactly when payment is made. Probably bad form to reply to your own post, lol....but here is information on the new credit card laws: http://credit.about.com/od/consumercreditlaws/a/creditbillright.htm One of the major parts is not allowing "unfair rate charges"...which seems to mean that there are limits to how much higher they can raise them annually....so if they raise them NOW they'd be grandfathered in I guess. Another biggie that I don't recall reading about (or maybe because I don't carry balances didn't pay attention to)....but if they raise your rates it has to be on NEW purchases, not on your previous stuff. Your previous purchases apparently stay at the old rate....that's another reason they are probably raising rates, especially on people with large balances so that the old purchases are at the new rate! Yikes. The other biggie to go along with this is that after the minimum is paid anything over the minimum payment gets credited to the higher rate balance first. That's a popular ploy for years on those special promo rates, or transfer rates.....they're really low but if you keep using your card they pay off those low rates first and your new charges accumluate finance charges at an alarmingly higher rate. Just like the common advice to pay off the higher interest items in your financial portfolio first, now the credit card companies will have to do so as well. Anyway....go to the link and read it, there are lots of small changes that make life a little fairer for the consumer, like payments received by 5pm (instead of 11am) are credited that day....eliminates that ploy of "it's not our fault if the post office doesn't deliver until 3pm". And longer time between mailing the bill and payment due......etc. These changes go into effect Feb 2010. Quote Link to comment Share on other sites More sharing options...
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