Credit Card APR Increase
Author: An
Posted: Fri Nov 07, 2003 1:28 pm
Post subject: Credit Card APR Increase
I've had this a credit card for over three or four years. When I first opened the account the APR was set at 16.99%. Overtime it fluctuated but settled at 14.99% during a time when it carried a 0$ balance. Then I started using it heavily and accummulated a balance and started paying it off with just my minimum monthly payment. I never missed a payment and always payed weeks in advance. Then suddenly I looked at my APR for this card and noticed it jumped to 24.98%. I called the MBNA about this and they told me that they are allowed to raise my APR if they felt like it even though I hadn't missed a payment. They said that I wasn't paying off my bills fast enough. I no longer have my credit card agreement with me but I used to remember it saying that they can only raise your APR if you miss a payment. It does say somewhere that they have the right to raise your APR but it doesn't disclose the reason why.
I did get them to lower my rate back to 14.99% but with a verbal agreement stating that I would have to pay a little more than just my minimum monthly payment for me to keep my 14.99%. Is this legal or aren't you allowed to just pay your minimum payment to keep your account in good standing for you to retain all the benefits? The way the person phrased his words made it seem like they were just trying to raise my APR and hoping that I wouldn't notice the change.
Also I noticed that the same card I carry they offer to new customers has a standard rate of 11.99%. Since mine is an old card it was given a rate of 14.99%. Am I entitled to this new APR rate even though I carry a balance? What I'm curious is can they just increase my rate to 24.98% even though I never missed a payment? Supposedly they did send me a notice in one of the mails but I didn't see it because of all the other junk paper they send in the advertisments. Any help would be greatly appreciated. Thanks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
author: daveberk
Posted: Fri Nov 07, 2003 4:43 pm
Post subject: Credit Card APR Increase
You are not entitled to anything when it comes to credit cards. Any company can raise your APR whenever it wants except when you respond to a firm offer for a particular rate that is good for a specified time like a promotional offer at 0% for six months.
The best defense you have in a case like this is to get several cards with different companies so that you can move your balances around if one of them jacks your rate. You are less vulnerable to a rate hike if the company knows you can take your business elsewhere.
Better yet, never carry a balance. Then the interest rate becomes irrelevant.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Aisha
Posted: Fri Nov 07, 2003 9:15 pm
Post subject: Credit Card APR Increase
They can raise you're rates but call and ask to speak to their retention dept. and see can they lower it and in the meantime follow through with what daveberk says and have a back-up just for situations like this.
Posted: Fri Nov 07, 2003 1:28 pm
Post subject: Credit Card APR Increase
I've had this a credit card for over three or four years. When I first opened the account the APR was set at 16.99%. Overtime it fluctuated but settled at 14.99% during a time when it carried a 0$ balance. Then I started using it heavily and accummulated a balance and started paying it off with just my minimum monthly payment. I never missed a payment and always payed weeks in advance. Then suddenly I looked at my APR for this card and noticed it jumped to 24.98%. I called the MBNA about this and they told me that they are allowed to raise my APR if they felt like it even though I hadn't missed a payment. They said that I wasn't paying off my bills fast enough. I no longer have my credit card agreement with me but I used to remember it saying that they can only raise your APR if you miss a payment. It does say somewhere that they have the right to raise your APR but it doesn't disclose the reason why.
I did get them to lower my rate back to 14.99% but with a verbal agreement stating that I would have to pay a little more than just my minimum monthly payment for me to keep my 14.99%. Is this legal or aren't you allowed to just pay your minimum payment to keep your account in good standing for you to retain all the benefits? The way the person phrased his words made it seem like they were just trying to raise my APR and hoping that I wouldn't notice the change.
Also I noticed that the same card I carry they offer to new customers has a standard rate of 11.99%. Since mine is an old card it was given a rate of 14.99%. Am I entitled to this new APR rate even though I carry a balance? What I'm curious is can they just increase my rate to 24.98% even though I never missed a payment? Supposedly they did send me a notice in one of the mails but I didn't see it because of all the other junk paper they send in the advertisments. Any help would be greatly appreciated. Thanks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
author: daveberk
Posted: Fri Nov 07, 2003 4:43 pm
Post subject: Credit Card APR Increase
You are not entitled to anything when it comes to credit cards. Any company can raise your APR whenever it wants except when you respond to a firm offer for a particular rate that is good for a specified time like a promotional offer at 0% for six months.
The best defense you have in a case like this is to get several cards with different companies so that you can move your balances around if one of them jacks your rate. You are less vulnerable to a rate hike if the company knows you can take your business elsewhere.
Better yet, never carry a balance. Then the interest rate becomes irrelevant.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Aisha
Posted: Fri Nov 07, 2003 9:15 pm
Post subject: Credit Card APR Increase
They can raise you're rates but call and ask to speak to their retention dept. and see can they lower it and in the meantime follow through with what daveberk says and have a back-up just for situations like this.
posted by CardRatings.com at 1:35 PM
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