Credit Cards with 0% APR Offer
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 444
Posted: Fri Jan 07, 2005 7:37 pm
Post subject: The Fixed Rates That Aren't
I received two offers for credit cards today. Both offered 0% fixed APR on both purchases and balance transfers for a full year. After that, one offered 10.99% variable and the other offered "prime" fixed. What interested me was the fine print. Both offers contained the same wording:
Quote:
You understand that the terms of your account, including the APRS, are subject to change. This means that the APRS for this offer are not guaranteed; APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs. We reserve the right to change the terms (including the APRs) at any time for any reason, in addition to APR increases that may occur for failure to comply with the terms of your account.(Bold text was bold in the original.) That's pretty clear. The banks no longer stand behind anything they say--not anything--and they can change the terms at any time. I guess you'll have a couple of weeks to pay off a card when the interest zooms or repayment in full is demanded or additional fees are tacked on for no particular reason. Credit cards are truly becoming a license to steal for the banks. Be very, very careful out there!
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sat Jan 08, 2005 12:10 am
Post subject: Re: The Fixed Rates That Aren't
Polonius wrote:
I received two offers for credit cards today. Both offered 0% fixed APR on both purchases and balance transfers for a full year. After that, one offered 10.99% variable and the other offered "prime" fixed. What interested me was the fine print. Both offers contained the same wording:
Quote:
You understand that the terms of your account, including the APRS, are subject to change. This means that the APRS for this offer are not guaranteed; APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs. We reserve the right to change the terms (including the APRs) at any time for any reason, in addition to APR increases that may occur for failure to comply with the terms of your account.(Bold text was bold in the original.) That's pretty clear. The banks no longer stand behind anything they say--not anything--and they can change the terms at any time. I guess you'll have a couple of weeks to pay off a card when the interest zooms or repayment in full is demanded or additional fees are tacked on for no particular reason. Credit cards are truly becoming a license to steal for the banks. Be very, very careful out there!
15 DAYS WRITTEN NOTICE is all it takes for your rate to increase...FOR CAUSE or NO CAUSE
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Author: Felix T Cat
Joined: 05 Jan 2005
Posts: 3
Posted: Sat Jan 08, 2005 7:28 am
I've gotten one of those letters before. A card I had for years with a fixed 9.9% rate sent me a letter out of the blue saying they were raising the "fixed" rate to 13.9% just because. I took one of the other 0% offers I kept getting and called for that card. After I transfered the balance I called and canceled the "rising" card. They didn't bother to ask why I was canceling.
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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 444
Posted: Sat Jan 08, 2005 10:48 am
It's not a question of a rate increase any more. With terms worded like this, banks can demand repayment in full at any time, or tack on a daily fee of $100, or increase your monthly payment to 50% of the amount due from the original 2.5%--all on a standard notice like 15 days. Banks don't even need the excuse that you've defaulted on their terms or defaulted to someone else. They don't need any reason at all. They don't need to say "we've raised our rate on all cards in that class"--they can single out your account in particular. Insult a service rep and watch the account be closed. They can do anything. ANYTHING! How can anyone plan financially if banks can act like that?
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2431
Location: Illinois
Posted: Sat Jan 08, 2005 2:02 pm
Worse then that you can't legally fight them any more with arbitration clauses added to the agreements, they force consumers from being able to take them to court to account for things like this
View our latest credit card ratings!
Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sun Jan 09, 2005 1:19 pm
I lost 4 BANK ONE cards totaling $24,250 BECAUSE THEY COULD!!! Short story... They closed 3 of 4 accounts with-out notice...I closed the 4th one the next day They could have "JACKED" me but they didn't because they didn't have any interest yet in all the years I had the cards (UNITED VISA) I don't pay interest on REWARDS cards (unless I am just using it as a BT card and not using it for purchases)
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Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sun Jan 09, 2005 1:21 pm
ALWAYS have a back up or two or ten
View our latest credit card ratings!
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 444
Posted: Fri Jan 07, 2005 7:37 pm
Post subject: The Fixed Rates That Aren't
I received two offers for credit cards today. Both offered 0% fixed APR on both purchases and balance transfers for a full year. After that, one offered 10.99% variable and the other offered "prime" fixed. What interested me was the fine print. Both offers contained the same wording:
Quote:
You understand that the terms of your account, including the APRS, are subject to change. This means that the APRS for this offer are not guaranteed; APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs. We reserve the right to change the terms (including the APRs) at any time for any reason, in addition to APR increases that may occur for failure to comply with the terms of your account.(Bold text was bold in the original.) That's pretty clear. The banks no longer stand behind anything they say--not anything--and they can change the terms at any time. I guess you'll have a couple of weeks to pay off a card when the interest zooms or repayment in full is demanded or additional fees are tacked on for no particular reason. Credit cards are truly becoming a license to steal for the banks. Be very, very careful out there!
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sat Jan 08, 2005 12:10 am
Post subject: Re: The Fixed Rates That Aren't
Polonius wrote:
I received two offers for credit cards today. Both offered 0% fixed APR on both purchases and balance transfers for a full year. After that, one offered 10.99% variable and the other offered "prime" fixed. What interested me was the fine print. Both offers contained the same wording:
Quote:
You understand that the terms of your account, including the APRS, are subject to change. This means that the APRS for this offer are not guaranteed; APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs. We reserve the right to change the terms (including the APRs) at any time for any reason, in addition to APR increases that may occur for failure to comply with the terms of your account.(Bold text was bold in the original.) That's pretty clear. The banks no longer stand behind anything they say--not anything--and they can change the terms at any time. I guess you'll have a couple of weeks to pay off a card when the interest zooms or repayment in full is demanded or additional fees are tacked on for no particular reason. Credit cards are truly becoming a license to steal for the banks. Be very, very careful out there!
15 DAYS WRITTEN NOTICE is all it takes for your rate to increase...FOR CAUSE or NO CAUSE
View our latest credit card ratings!
Author: Felix T Cat
Joined: 05 Jan 2005
Posts: 3
Posted: Sat Jan 08, 2005 7:28 am
I've gotten one of those letters before. A card I had for years with a fixed 9.9% rate sent me a letter out of the blue saying they were raising the "fixed" rate to 13.9% just because. I took one of the other 0% offers I kept getting and called for that card. After I transfered the balance I called and canceled the "rising" card. They didn't bother to ask why I was canceling.
View our latest credit card ratings!
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 444
Posted: Sat Jan 08, 2005 10:48 am
It's not a question of a rate increase any more. With terms worded like this, banks can demand repayment in full at any time, or tack on a daily fee of $100, or increase your monthly payment to 50% of the amount due from the original 2.5%--all on a standard notice like 15 days. Banks don't even need the excuse that you've defaulted on their terms or defaulted to someone else. They don't need any reason at all. They don't need to say "we've raised our rate on all cards in that class"--they can single out your account in particular. Insult a service rep and watch the account be closed. They can do anything. ANYTHING! How can anyone plan financially if banks can act like that?
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2431
Location: Illinois
Posted: Sat Jan 08, 2005 2:02 pm
Worse then that you can't legally fight them any more with arbitration clauses added to the agreements, they force consumers from being able to take them to court to account for things like this
View our latest credit card ratings!
Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sun Jan 09, 2005 1:19 pm
I lost 4 BANK ONE cards totaling $24,250 BECAUSE THEY COULD!!! Short story... They closed 3 of 4 accounts with-out notice...I closed the 4th one the next day They could have "JACKED" me but they didn't because they didn't have any interest yet in all the years I had the cards (UNITED VISA) I don't pay interest on REWARDS cards (unless I am just using it as a BT card and not using it for purchases)
View our latest credit card ratings!
Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 142
Posted: Sun Jan 09, 2005 1:21 pm
ALWAYS have a back up or two or ten
View our latest credit card ratings!
posted by CardRatings.com at 3:37 PM
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