I got letters from 3 of my credit cards on the same day. Apparently FIA(?) is servicing for multiple credit card companies.

The letter said rate and program changes were inside. When I opened it they said they were unilaterally changing my 6-7% card rates to almost 20%. Then they said I could Reject this rate change but dire things would happen to me.

When I called they laughed and said the letters were made to scare people into accepting the new higher interest rates and I could keep my old rate and term, BUT it would be closed to new charges. Guess which choice I took?

The moral to this story is follow up on all those strange letters you get from your credit card companies, they will do strange things to you if you allow them.

I'm just going to transfer the balances to new cards in a few days. The closed accounts wouldn't affect my credit scores hardly at all, but how can I trust a company that would do that? What will they try next?

 

I received a letter from Citi a couple of months ago. They said that my interest rate would be raised from 13.99% to 19.99%. There was a disclaimer that said that I could call and ask for the change to be reversed.

I called Citi, and asked them to keep the APR at 13.99%. They said they would do that, but once the card expires, they would not send me a new one and my account would be closed down.

I had my Citi card since I turned 18, my longest card, so I decided to keep the account at 19.99% APR, since I've never paid any credit card interest.

 

Yep. My wife got a letter from Cap. One a month or so ago. We've never paid interest on a credit card, so it's a non-issue. I do agree that it's shady, and we don't like that a company would do it.

 

With Cap One nothing is a non-issue unless you can speak Indian and don't care about U.S. laws.

As to interest free, that's going away soon so yes, it is an issue.

 

Are you saying that companies will start charging interest for those not carrying a balance?

That would be an issue.

 

Think about what you just said? How would that even be possible? Interest on a balance of 0?

No, what he means is those introductory 0% offers will be history.

 

Not carrying a balance from month to month, but there most certainly is a balance if you actually use the card. The companies would just have to eliminate the "grace period" and you'll start accruing interest the moment you make a purchase with the card.

 

Yes, they say they are losing too much money and can't afford to do it much longer.

Look at it another way, you are using their money rent free is that right?

 

^ Yes, but I don't have to.

...and by carrying a balance, I do mean from month to month. I pay the balance, in full, every month. If I have to start handing money over to them, I'll be happy to become my own credit card company.

 

To people who doesn't believe that CC companies makes money even when you pay on time is wrong.

Like I mention before in this topic, the companies still make money when you spend the credit card. They take certain percentage of your purchase amount from the place you bought it at (1%-2%). And let me let you in another secret. For some cards,....cough cough...Discover...cough cough.... the place you made purchase at, have to pay additional percentage for reward program based cards. So don't think the 1%-2% gets cancel out. So someone who spend like couple hundred...then 1%-2% is not worth it for them.

The only reason that I think my account hasn't been cancel yet is that I average about 2-3k a month in purchase. And I pay it off. Because 1%-2% of 2-3k is someones late fee. That's why I am still able to keep my head above water with them.