Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Credit Cards
  5. / Credit Card Interest Rates

by Nancy on May 27th, 2009

Nancy

Question

Help answer this question below.

Have any of your credit card companies hiked your interest rate way up and/or reduced your credit limit drastically for no apparent reason?

  • Like
  • Report
Share:
Other

Answers. 4 helpful answers below.

  • by Scrappy on June 3rd, 2009

    Scrappy

    Yes. I had a WAMU that sold to chase and my interest rate jumped from 10% to 17% in 2 months. Another one of my CC is about to jump from 9% to 13%. Of course you can refuse to pay the new rate by closing your account and paying the full balance. How many of us can do that? Obama is changing some of the rules with CC companies so maybe it will be better soon

    • Like
    • Report

    1 comment | Post one | Permalink

  • by laobali on May 30th, 2009

    laobali

    This is how many credit card companies are dealing with possible defaulters who lose their jobs and cannot pay even the minimum each month. They are reducing their risk.

    • Like
    • Report

    3 comments | Post one | Permalink

  • by Juno66 on May 27th, 2009

    Juno66

    My interest rate went all the way up to 28%! They didn't decrease my limit though.

    • Like
    • Report

    1 comment | Post one | Permalink

  • by laobali on June 3rd, 2009

    laobali

    Nancy, convenience for the user was the original perceived intention, but the CC companies knew that many people would pay them interest at what was originally a high rate for what was intended as a short term loan – not for month-to-month living on them and getting into a debt spiral (and default) as millions of people have been doing.

    Interest rates were lowered or scrapped temporarily to lure new customers by offering them cheap or free balance transfers. It effectively gave people double or more the amount of credit they had before. The CC companies had to borrow that money themselves. Now the whole system has all come unstuck – and rightly so.

    I went through all this many years ago and learned my lesson from it. Debit cards are the answer for most transactions, as you have the cash in the bank to pay instantly. Credit cards should be used only where necessary e.g. for hotel bookings, car rentals etc. where a deposit is needed. Also for perks such as getting refunds or building up points for gifts or air miles. You still earn those if you pay off your credit card in full each month.

    Unfortunately for so many people, the damage has been done already; it's going to take quite some time to recover.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading Have any of your credit card companies hiked your interest rate way up and/or reduced your credit limit drastically for no apparent reason?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Is it me or have credit cards rates gone way up

Answerbag

a Demand Media company