Credit card raising interest rate!

**Natalie** · 11-11-2009, 06:04 PM

My main credit card (the 1st one I opened) is raising the interest rate to 24%!

I read somewhere that this is a desperate move by CC companies cause of the new rules for them. Sometime, I think in Feb, CC companies have to obey they new laws, government will make 'em. So they're trying to get as much money as they can before then.

It doesn't bug me much, 'cause I don't carry over a balance, but I have at times, had a CC deposit a little extra money into my checking account to tide me over just a bit (like $200), then pay it off in full once the bill, and my paycheck, have come.

CC companies are just desparate!

**_kit** · 11-11-2009, 06:20 PM

I got a similar letter in the mail about one of my credit cards. Either I transferred $3000 onto the card (and paid a 3% fee for doing so) or the rate would go up to 18.99%. That's double what it was! I called to see if there were any other options but each option they gave me was worst than the last. I have excellent credit, have been a customer with them for a long time but was told that the company was evaluating all their rates so they could continue to stay in business. I told them it was too bad that they were punishing me, as a good customer, for the poor decisions they'd made in who to extend credit to because I was opting out of their new deal and they could go ahead and close my account. I think you're absolutely right that some of the credit card companies are getting desperate.

**scrappinmom30** · 11-11-2009, 07:44 PM

My credit card company pulled this one on me a few months ago. They raised my interest rate to 28.99%. My minimum monthly payment raised by almost $200.00. I called and had it lowered but still had to pay the high payment. I had to close out the account because if I use the card again they will raise the interest back up. They are just hurting themselves, because I always made my payment on time, and now I will never do business with them again!

**craftypam** · 11-11-2009, 09:08 PM

We all have to beat them at their own game by refusing to be a customer of theirs when they pull this stuff. Try your credit union. Ds got to transfer his balance for free and his new interest rate at the credit union is 9% Fixed

**Luv2BeFrugal** · 11-11-2009, 11:11 PM

So many CC companies are doing this... I'm curious to see where they are a year from now...I'm thinking some of them will end up going out of business???

**frugalfranny** · 11-12-2009, 12:22 AM

Oh yeah! I keep expecting that I will start getting my notices too.

It is going to get down and dirty before Feb. Not sure they are 'hurting' so much as just plain GREEDY!!

**melodys** · 11-12-2009, 12:46 AM

I just got hit with this too. Quite a change from a few years ago.

I don't think this is what the Feds had in mind when they lowered their rate to near 0%.

**Imarachne** · 11-12-2009, 07:30 PM

The credit card companies are hurting and want us to pony up their bonuses. Getting rid of those cards is really our only defence ,'cuz someone is always trying to take our money !!

**NcsstyBrdsIngnty** · 11-13-2009, 12:26 PM

Wait until your free checking accounts get monthly fees (or increases) because they can't charge overdraft fees anymore. I have to agree with CraftyPam - I love my credit union debit card, checking accounts, and lately their APRs have been pretty conservative.

I did see one tricky thing on both of my traditional CCs lately - they signed me up for a "balance protection" without my permission that tried to charge me 1% on transactions even though I have never carried a balance except to take advantage of "no payments/no interest" deals.