Credit Card Rate Increases

TheresaGC · #1 04-29-2007, 06:28 PM

My credit card company...I am a credit freak, all bills paid on time, etc. because when I was younger (15 years ago) I had two bad debts, one for 900.00 and one from 500.00. So now I made up for it by paying off two car loans perfect;y and got two credit cards. One of them started with 16% intrest, not bad. Ihave made every single paymwnt on time, most of the time unless I rent a car it carries a 0 balance. They raised my intrest rate to 30%!!! I called and they said they have that right. I said that their small print stated if all payments were made on time I'd get a credit limit incresae, not this. Why would I have been punished for paying on time? I have since closed one MasterCard account with them (in good standing) now they are starting on the other account. This is realy starnge. My good card, my Chase has never gone up, it actually went down three points! I only got these two for car rentals becausethey offer free insuarnce on rentals.

Thanks,
TGC

aaron · #2 04-29-2007, 08:03 PM

This is what credit card companies do - if you carry a balance, they like to raise the rate and make more money.

Betty3 · #3 04-29-2007, 10:32 PM

I'm sure it's in the fine print of their credit card agreement that they reserve the right to increase the interest rate or in a notice sent later indicating changes in credit card agreement - they normally send a notice that eff. as of a certain date the interest rate is changing.

who-what · #4 05-01-2007, 08:52 AM

Yeah! I hate credit card cards anyway. I love they way they have all of these stipulations, like, pay before X date but not before Y date. I also love the way those minimum payments that they set for you so they can squeeze as much interest out of you as possible. Check this out, I know a guy that has the same card as I "had" and his interest rate was 6% while mine was 12% and he had recently filed bankruptcy and I had been doing the same as you, holding little to no balance and never late on a payment. It makes me think that they prefer customers with credit risks over the opposite.

CC companies love those late payers, high balances and the high interest rates. You can blame our debt based capitalist system for this type of behavior. I stay away from them at almost all costs!

who-what · #5 05-01-2007, 02:56 PM

oh...one last thing...credit card companies and "vampires" have some of the same traits...they suck the life out of people!