We have only 2 credit cards, an American Express, and a Visa. We seldom carry a balance on them. Well, last night on the news, they were saying that credit card companies such as Bank of American, Chase, etc, were raising their interest rates on credit cards, to off set the loss they were taking on mortgage forclosures. They can do this for no reason at all. Dh and I have had our Visa for years, it is the same bank we have our checking/savings, and car through. We have NEVER made a late payment. Well, I looked at our last statement, and sure enough, our rate went up from 9.8% to 22.5%!!!! It has been this way for the last few months, we don't have a balance on the card, so I never looked. So, if you have a balance on a credit card, you might want to take a look.

Urggg...I think it is just ridiculous.

By Crystal915 on Tuesday, February 12, 2008 - 01:46 pm:

I'd call and tell them to lower it or you are canceling. My automatic payment got screwed up, and my rate went from 10% to 30.25%, which is a crazy penalty rate, but hey, it was my mistake and I paid it. After 6 months or so I requested it be dropped, because I had good standing other than that 1 late payment, and it's back to 10%. I'll check again to make sure it didn't go up, because that is ridiculous, I shouldn't have to pay for someone's mortgage problems.

By Ginny~moderator on Tuesday, February 12, 2008 - 05:06 pm:

Crystal is absolutely right. Protest, in writing by snailmail, immediately. They will probably drop it back right away.

And, you might want to send a letter to your congressional representative and senators, advising them of this. Do you know when the rate went up? Do you have any documents in which they notify you of the rate increase?

Oh, and I'm going to check mine the minute I get home. I pay my balances in full each month also, but still, I don't want a high interest rate hanging out there, and I do have a Chase card through AARP.

By Boxzgrl on Tuesday, February 12, 2008 - 05:10 pm:

I just double checked mine. It's still at 7.99% but i'm going to be watching it like a hawk! We rarely use it but still... i'd hate to have to pay 20% or more interest if an emergency were to occur.

By Debbie on Tuesday, February 12, 2008 - 05:17 pm:

Ginny, I never got anything in writing about the increase! I went back and looked at my statements, it went up in December. We haven't carried a balance lately, so I never noticed. I am going to call tomorrow. If they don't drop it back down, I am going to cancel it, and get another one with a lower rate.

By Enchens on Wednesday, February 13, 2008 - 12:02 pm:

Debbie, I do believe the companies are supposed to notify you of rate increases BEFORE they happen. It's usually a little insert with the credit card statement. And I agree with everyone else, call and have them lower the rate, even if you pay in full.

I'll be checking my rates, too.

Thanks for the post.

By Ginny~moderator on Wednesday, February 13, 2008 - 12:39 pm:

I checked and my rates have not gone up. And yes, they are supposed to notify you in writing. Often that notification is a separate mailing that looks like junk mail, with a brochure enclosed that has some fine print somewhere that talks about interest rates. Personally, while I recognize that some people take advantage of CC companies and try to walk away, on the whole I think the CC companies get away with the farm, and legislators don't want to mess with them because the big banks contribute in a big way to political campaigns.