So one of my cards has been at 8.9% for years now, but I get this thing in the mail saying "due to economic times blah blah blah we're increasing the rate to 17.9%"

I have a couple grand on it that I'm paying off slowly since I have other debts I'm paying down as well. This stupid increase will definitely make that process much longer.

I have the option to close the account and just pay it off at its current rate, which is kind of fine since I don't use the card anymore anyway. But I'm also aware that closing an account hurts your credit score.

So my question to you TWW is this: Would you just deal with the rate increase so you don't take the hit on your credit score for closing an account, or say fuck them getting more money out of me and close that shit regardless of how it may affect your credit score?

2/18/2009 12:49:21 PM

pay that fucker off and close it

having a balance is hurting you more than closing it will

2/18/2009 12:50:14 PM

It depends on other factors, like
- is this your only CC?
- If not, is this your oldest CC? (the one that helps determine the length of your credit history)
- What's your credit like overall?

You could make this a higher priority, and pay this one off more aggressively, given the change in terms.

2/18/2009 12:51:46 PM

:One of my credit cards did the same - but it only applied to new purchases (not previous balances). If they are changing the rates on old balances I would probably transfer to a card with a lower percentage rate. Most of my cards are only increasing my default percentage rate which shouldn't affect me because I don't default on payments.

2/18/2009 12:58:49 PM

With my current plan it was going to take a couple years to pay it off just because I have other cards with higher rates I wanted to pay off first. Even with the increase its still lowest (yay store credit cards).

It's not my oldest card either, but I have had it awhile.

Overall credit is fine. I've never been delinquent with anything, just racked up a bunch back in school and now I'm paying it all off.

^ a lot of cards are increasing rates since there's a law thats going to prohibit it in the near future. I'm curious to see what will happen with my other ones.

[Edited on February 18, 2009 at 1:03 PM. Reason : .]

2/18/2009 1:02:37 PM

open a card with SECU and pay off that balance.

once its paid at a good rate, leave it open to help your FICO and in case of an emergency... just don't use the freaking thing like it's free money ($2k balance).

also, depending on the # of cards you have open perhaps a little consolidation would be a good thing and some SECURED debt.

[Edited on February 18, 2009 at 1:07 PM. Reason : aerg]

2/18/2009 1:05:50 PM

Thats the plan with all my cards, I was just gonna pay them off and leave them alone. Especially that one cause it had a decent rate.

transferring to a SECU card isn't a bad idea though. Fuck those other guys anyway.

[Edited on February 18, 2009 at 1:09 PM. Reason : .]

2/18/2009 1:07:20 PM

my USAA card went up like 2% but damn, I'm glad I didn't get that 11% like you, especially because I'm in the same situation of paying it down and leaving it alone

2/18/2009 1:13:58 PM

sounds like that bank likely a cocksucker bank such as Citi/Chase/BofA is trying to give it to you, the "avg american" , up the ass.

Hey get our credit card. Put on a balance to fund that vacation, tv purchase, tuition payment. Oh look you got a 3000 balance and are only paying an average $400/month. Hmmm well it sucks for you but due to the economic times we'll be raising your interests rates to 24.95%!!!

sorry

I swear the difference between some banks and loan sharks is the shear size along with the fact they are traded as a public company. Otherwise its the same. Instead of sending thugs to kick your ass they send court orders to take all your shit when u have trouble paying up.

Open a new CC with say the NCSECU and transfer the balance. AFter you do this tell the other bank to fuck off and hope you don't get your bail out money.

I love how the banking institution is making up for their budget shortfall due to mismanagement by ass railing their customers to make up the difference.

[Edited on February 18, 2009 at 1:19 PM. Reason : l]

2/18/2009 1:18:52 PM

SECU cards are at a minimum of 9.75% but thats still better than fucking 18%

2/18/2009 1:21:43 PM

^^ my Chase card is still at 7.24%

I'm surprised it hasn't gone up yet

2/18/2009 1:23:06 PM

^^ true, but they have been that rate forever (almost literally).

[Edited on February 18, 2009 at 1:24 PM. Reason : I need another ^]

2/18/2009 1:24:39 PM

I could live with 9.75% or whatever. It won't matter once its paid off anyway.

2/18/2009 1:27:10 PM

Just open any of the 0% balance transfer card offers out there (mint.com will refer you to several).

With those, you are locked in to the 0% rate for the 6-12 month period, which should give you plenty of time to pay off the balance. If this isn't your oldest open credit line, close them both after you pay off the balance. Otherwise, just pay it off, close the new card, and use the old one for the occasional small purchase.

2/18/2009 1:33:12 PM

Citi tried that number with me, and I never returned the acknowledgment and agreement form. They called and told me what they were doing and told me I had the right to refuse and keep my current interest rate, but that my account would be terminated on the card's expiration date.

That's a little over a year from now, so I told them I would NOT accept the new interest rate.

2/18/2009 1:36:22 PM

If I could actually login to mint I'd look in it

2/18/2009 1:42:26 PM

How secure is this Mint.com Site? I started to sign up but then it asked for my bank login information.

2/18/2009 1:47:13 PM

Don't highjack my thread. There's a whole thread about Mint, search for it.

2/18/2009 1:49:22 PM

Calm down sir

2/18/2009 1:50:04 PM

I AM CALM GODDAMNIT

[Edited on February 18, 2009 at 1:52 PM. Reason : d]

2/18/2009 1:51:25 PM

I found it, thanks


Also I would call your credit card company and complain about this rate hike.

2/18/2009 1:52:46 PM

I'm asking them if it applies to the current balance or only new purchases. If it only applies to new purchases I might just leave it alone. The rate will come back down eventually. Otherwise I'm shopping for a new card, fuck that.

2/18/2009 1:57:31 PM

A few points on your credit score is nothing compared to the hundreds or thousands of $$ you'll be paying with that kind of increase.

close it and pay it off.

2/18/2009 4:01:21 PM

My rate actually went down almost a whole per cent recently.

I'm still paying off my balance (it's not super high but I still don't like it) but I mostly use it for emergencies (like midnight vet runs!) or replacing stuff that breaks.

You should check out their advice on the Consumerist.

2/18/2009 5:32:57 PM

Quote :

"They called and told me what they were doing and told me I had the right to refuse and keep my current interest rate, but that my account would be terminated on the card's expiration date. "

Had that been me i would have told them "go ahead fuckers."

2/18/2009 9:21:25 PM

^^ on one of my other cards its gone down several percent the last year or so as its being paid off.

these other guys are just greedy motherfuckers.

2/18/2009 10:18:54 PM

Quote :

""due to economic times blah blah blah we're increasing the rate to 17.9%""

So basically, due to economic times we're going to make it even more difficult to make your monthly payments. Oh okay

2/18/2009 10:24:08 PM