Fortuna

All my interest rates are getting jacked up.

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Although there are no more negatives on my scores ( collections, etc...) I unfortunately hit tough times in the past 2 years and made the mistake of charging up almost of my AC on CC. My ratio is terrible. I made one mistake by accidentally underpaying a major CC one month (by $6!) and didn't notice until I got a notice that it triggered the default rate. When I contacted the company they were no help whatsoever so I closed the account. Maybe not the best move, but it carried a huge balance and getting the rate increased by 10%, it will take me eons to pay off.

Either because of that, my ratios overall, or because of the general state of the industry increasing rates left an right, I am getting rate increases from all my CC companies.

What is worse, closing the accounts and further damaging my ratio scores, or allowing them to stay open and incur interest charges that will extend my time frame for paying them off even more?

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Welcome to the new credit world...

You are not the only one who's suffered with jacked up rates. Most everyone I know with a credit card- including those who pay on time, have had their rates go up from 5-15%.

I guess now, the CC issuers no longer want customers who pay on time- they lose out on late fees and being able to raise rates.

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Closing an account drops your ratio of available credit. Meaning that your credit usage ratio jumps dramatically. At this point, what ever accounts you have open, leave them alone and pay on them.

///

As an aside, I had one of my cards canceled for paying on time... no rhyme or reason given by the issuer. So pardon my bias...

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Which will lead to defaults, which = moocho money for the CC companies to fees and penalties, which will lead to BK's for many if you can qualify.....if not you are stuck in the black financial hole.

GET RID OF THE CC's......stop using them. This is your only way to fight back.

Find one good card, use it for only emergency's unless you can pay in full monthly............Cash is king, they will be hurt by this method more than you think, its already starting to scare the hell out of them, if the job market was not in disaray it would be much worse for the CC market.

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I've been charging as little as possible, and paying off each month for that reason. I don't want to give them any more of my hard earned money than they deserve.

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Yes, due to the Economy Credit Card companies have been saddled with huge debt and are scrambling to limit their exposure.

Also, they are scrambling to make changes before new Credit Card Legislation goes into affect.

I disagree about getting rid of Credit Cards as this will firmly take you out of the "Credit Card Game" and will end up hurting you in the end. I believe everyone should use Credit Cards like Debit Cards, where you only spend what you have in the bank and you pay it off after it is reported each month.

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I had to cancel my Hooters Mastercard. They raised the APR to 16% from 9%. Also wanted to start a annual fee of $48.00 billed monthly. I could not keep this card regardless if it lowered my score. Right now I'm in the mid to upper 700's. Just bought a new car with 4% interest. I will not have any big ticket item buys for awhile so I will wait for the closure to correct itself. I'm tired of being the scapegoat for these credit card companies who think that they can beat the consumer all they want and disregard those who have been loyal customers.

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