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two of my credit card providers have informed me they are increasing their rates, what can i do

by mayall66 20 January 2009 |

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I think this is scandalas, I have received two letters so far stating that the interest rate on my cards will uncrease and the increases are 6 percent above the present rate. How can this be , when the goverment are pumping more and more billions into the banks. You would think that the banks in question would give some leeway but as usual they are being as ruthless as ever.I have not missed a payment on either banks ever so maybe they figure I'm an ideal target to increase their rates on. Of coure I will be tranfering the money to smaller interest credit cards but will this be a trend with them all eventually. in the end I think the government will have to act and put a cap on all interest charges.

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824

MikeGG1 posted
It sounds as though they have downgraded your credit rating and put you onto the cash advance interest rate for all purchases.

Make sure that you always pay at least the amount that you charged to your card in the month plus any interest due or the minimum payment, whichever is the higher. That will bring down your level of debt and improve your credit rating.
Posted on 20 January 2009 | Love 0 loves Report
83

SmudgeButt posted
Best thing I ever learned from TMF is that banks offer us credit to make money. (I knew this but just needed to be reminded I think) So I bet you haven't been making enough money for these banks.

Ring them up and ask them to increase your credit limit as you want to buy a car which will cost you (pick a number) £7000. You can only buy this car IF the bank increases your limit and IF they give you a better rate as it will take you a year to pay this off. Then ring the other card and say the same.

You could always add that you have seen a card offer on the TMF comparison page that you are considering but don't want the hassle of applying.

And then once they reduce your rate don't buy the car. (someone else got to it first so you missed out - what a shame.)
Posted on 20 January 2009 | Love 0 loves Report
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WillyEckerslyke posted
A similar thing happened to me this morning. Over 10 years ago, I took out a Capital One visa card when they were about the only card providers who would consider my dubious credit record. I am now able to shop around and have a much better rate (less than half the Cap. one rate) on another card. My Capital One balance was cleared completely two or three years ago and the card only used when I know absolutely that I can pay it off completely whenever I use it. I really only keep the C1 card as they offer "free" monthly check on Credit reference changes. This morning I received a letter informing me that they value me as a customer (Ha Ha) but as it costs them more to lend, they are increasing my standard rate to 34.94%. Although I have had no problems with credit or obtaining 'normal' rates on overdraft (not used) and other cards, Cap 1 don't seem to think that I qualify for any better deal.
Posted on 20 January 2009 | Love 0 loves Report
824

MikeGG1 posted
Capital One may be in trouble, financially.
Posted on 20 January 2009 | Love 0 loves Report
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seriousmoneyFool posted
Unfortunately for us very Foolish consumers, credit card companies are now employing American style tactics by decreasing credit limits and increasing interest rates.
To be honest there isn't much we can do about it other than be really prudent and carry as little debt on the cards as possible.
Posted on 20 January 2009 | Love 0 loves Report
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cheesedoff posted
Just had my cap 1 card increase my apr by 4%. Only last month they tried to up my limit. Whats going on with these people.Been with them for years and never missed a payment always handle my affairs well within t/c . will be closing my cap 1 card asap. Anyone esle been treated so appaulingly.
Posted on 29 July 2009 | Love 0 loves Report

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