About two weeks ago I got a letter from my credit card company saying that in December my interest rate would be going up to 24.99%. This card has been slowly going up for the past couple of years to almost 20%.
Normally I pay of the card every month so it’s not a big deal, but there are times that it takes a couple of months to pay something off. This really pisses me off because I’ve never been late or anything like that and they’re just trying to really make a ton of money.
I was really ready to cancel the card, but it’s the card I use the most, I had it the longest, 11 years at this company and 4-5 before that. And before that it was a calling card, so I’ve had the credit limit open for 18 years or so. It also will give me an extra line of car insurance when I rent a car. I have only one other credit card, and I haven’t used it in years and I’m not sure it’s still even open as I can’t find the card. It is through my credit union so I’m hoping that it is.
I did call and try and see if they would lower the rate, they will not. When I asked why they were raising the rate I was told “To better help our customers”, WTF, how is that helping me at all? And was also told that I pay every month so it shouldn’t matter to me at all.
So any wisdom on canceling the card or not. I’m also going to try out a poll for the first time to see if others are in the same boat.
I have 2 cards that I’ve had for many years; one increased my rate, and one has left it alone (so far). But I’m keeping them both open, because I am about to apply for mortgages and don’t want to screw around with my credit. And I don’t carry a balance, anyway, so it’s pretty irrelevant at the moment.
I carry three cards. I vaguely recall getting a letter that the rate was going up on one of them. I couldn’t tell you which one. When I get a letter about a change in terms I look to see whether they are imposing an annual fee or they’re cutting my credit limit or benefits. They can change the rest of the terms as much as they want to because they won’t affect me.
Haven’t actually canceled the card, but I just paid it off the other day and won’t be using it any more. I figure it does me no harm, credit-score speaking since it lowers my overall utilization rate to have the unused credit and it’s a very old account, increasing my average account age. If those factors change I’ll cancel it.
I got a card from our credit union, in my own name, to replace that one. Typo Knig and I make a point to each have a card of our own in case of emergencies.
Oh - and re the question about should you cancel the card? Don’t - as you noted, it’s been open for a long time. If it offers other benefits, keep it and use it when you know you’ll be able to pay it all off. Look into a lower-interest card to have available for times when you’ll need to carry a balance for a few months. We have a credit union card at 9.9% that we use for that sort of thing; we have a rewards card that we use for monthly expenses.
Same here Mama Zappa. Both cards have increased my rates. I’ll keep them both because of the length of the credit history. Once the balance I have left is paid off, I really don’t plan on using them anymore.
Also agree that you shouldn’t cancel the card. It can hurt you more than it hurts them. **Mama’s **plan is a good one.
I have one card and they jumped the rate from 6% to 13%. I’m keeping it because I doubt I’ll find better than 13% anyway. I’m not happy about it but I rarely use the card anyway.
I thought about an I don’t know option, but not at the time I made the post. I don’t think I’ll be canceling the card, but I think it sucks they upped it by so much for no reason other then they can.
My main card has had a rate increase. I’ve had this one for about 16 years now, so I’m not willing to just dump it, but I am starting to shop around, for another card to become my main card. This one will sit in a drawer.
Hope the bank enjoys exchanging an increased rate (that I don’t pay since I pay off the card) for majorly decreased earnings from their merchants fees on purchases I no longer use their card for.
My credit union is not increasing the rate; my other two (held for 20 years each) I am keeping so as not to mess with the credit score. Only one has a balance, and I’m going to try to take out a personal loan from the credit union to move it to a better rate. I did call and cancel, but I un-cancelled the next day. Who knows what effect that will have.
I pay off my balance every month and Chase just raised it. Fine by me though, I am in the process of canceling all business with them and moving to Charles Schwab.
I don’t know what the interest rate is on my two cards. As we haven’t paid any credit card interest in several years it doesn’t seem to matter.
Also haven’t made a car payment in 15ish years.
Got the house paid for also.
We’re retired and starting to think about our winter trip to warmer climes. 6, 8, 10 weeks (whatever, don’t have any reason to come back until we’re good and ready) in California, Arizona, New Mexico, Texas sounds about right.
Oh man, I love getting to rub this shit in.
Of course we’re probably closer to being dead than most of you, but it’s a small price to pay IMHO.
Me too. No idea even what the rate is–or ever was. On the other hand, I put around $40,000 per year on it, since I get a rebate of about $400. That amazes me.
I think it’s interesting that, of those people who have gotten a rate increase, more of them have chosen to keep the card, and of those people who have not, more have claimed that they would cancel it. I’m not sure what conclusion to draw, but it’s interesting.
Haven’t gotten any notices for my card, but I pay all charges off every month (actually, usually as soon as I see then hit the card). Of course, I live in Canada, Land of Not Quite So Insane Banks, so maybe our rates haven’t gone up as frequently. And my rate is already their standard new user rate of 19+% (I’ve had the card less than a year), so there’s not that much room for them to increase it without hitting the penalty rates. But what do I care? I have a zero balance on it anyways.
Have two cards. My Chase did try to increase my rate and I opted out. BOA, as of yet, hasn’t, If they do, I’m not sure what I’ll do since that’s my only other credit card account.
