Apr Increases on Credit Cards
Author: rustsleeps
Posted: Fri Jan 28, 2005 4:34 pm
Post subject: Apr Increases
First, want to thank you all for sharing so many valuable lessons & insights here - I am so glad that I found this website via ASK JEEVES.
Yesterday, I received a letter with my monthly bill from CAPITAL ONE (I hear the groans) that informed me that my APR was being increased by 5%. Included was an "Important Information" sheet which said that I could "decline this change" and pay off my "...outstanding balances at the current rates and terms". It went on to say that I must stop using my card and complete/submit a small form telling them of my decision prior to February 15th.
I have never seen anything like this and was really hoping that someone could shed some light on the subject. I am inclined to send in the form immediately, but am somewhat worried about the possible negative outcomes.
Would appreciate any thoughts you all might care to send my way.
_________________
Life is just a Temp Job.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Fri Jan 28, 2005 8:44 pm
Post subject:
If you decline to accept the change, the bank won't approve any additional transactions on the account. Your available credit will be changed to 0 and all future charges will be declined. So if you take this option, be sure to cancel any scheduled automatic charges (automatic billpay, subscription renewals, etc.).
The account will appear as "closed by consumer" eventually. Because you are carrying a balance on a card with no available credit, I think that you'll see a hit on your credit score (100% utilization of available credit, or overlimit utilization) but I'm not sure about that--there might be a special code to handle this situation. In any case, there's no collection action involved as long as you make your minimum payments each month on time.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Andri
Posted: Sat Jan 29, 2005 10:50 am
Post subject: Apr Increases on Credit Cards
wow, must be that time of year....let's raise everyone rates!!!!
Author: NightStar
Posted: Sat Jan 29, 2005 1:19 pm
Post subject: Apr Increases on Credit Cards
Hopefully they don't report lower balance, but the reporting of the account closed is always viewed negatively.
But I would still recommend closing rather then paying that higher interest rate.
What is your credit situation? Utilization, credit score? maybe you can apply with a different creditor to get better rate and transfer this balance over.
If not then just sit on it and make your payments as agreed. They can't raise the rate if you stick to the agreement.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 Ph
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Jan 28, 2005 4:34 pm
Post subject: Apr Increases
First, want to thank you all for sharing so many valuable lessons & insights here - I am so glad that I found this website via ASK JEEVES.
Yesterday, I received a letter with my monthly bill from CAPITAL ONE (I hear the groans) that informed me that my APR was being increased by 5%. Included was an "Important Information" sheet which said that I could "decline this change" and pay off my "...outstanding balances at the current rates and terms". It went on to say that I must stop using my card and complete/submit a small form telling them of my decision prior to February 15th.
I have never seen anything like this and was really hoping that someone could shed some light on the subject. I am inclined to send in the form immediately, but am somewhat worried about the possible negative outcomes.
Would appreciate any thoughts you all might care to send my way.
_________________
Life is just a Temp Job.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Fri Jan 28, 2005 8:44 pm
Post subject:
If you decline to accept the change, the bank won't approve any additional transactions on the account. Your available credit will be changed to 0 and all future charges will be declined. So if you take this option, be sure to cancel any scheduled automatic charges (automatic billpay, subscription renewals, etc.).
The account will appear as "closed by consumer" eventually. Because you are carrying a balance on a card with no available credit, I think that you'll see a hit on your credit score (100% utilization of available credit, or overlimit utilization) but I'm not sure about that--there might be a special code to handle this situation. In any case, there's no collection action involved as long as you make your minimum payments each month on time.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Andri
Posted: Sat Jan 29, 2005 10:50 am
Post subject: Apr Increases on Credit Cards
wow, must be that time of year....let's raise everyone rates!!!!
Author: NightStar
Posted: Sat Jan 29, 2005 1:19 pm
Post subject: Apr Increases on Credit Cards
Hopefully they don't report lower balance, but the reporting of the account closed is always viewed negatively.
But I would still recommend closing rather then paying that higher interest rate.
What is your credit situation? Utilization, credit score? maybe you can apply with a different creditor to get better rate and transfer this balance over.
If not then just sit on it and make your payments as agreed. They can't raise the rate if you stick to the agreement.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 Ph
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:19 PM
0 Comments:
Post a Comment
<< Home