CC Interest Rate Increased??

**sweeps** · 05-14-2006, 07:41 AM

Re: CC Interest Rate Increased??

First, was the 9.9% a promo rate? The promo might've ended and you're at the regular rate now.

If it wasn't a promo rate, were you late on any other credit cards? You may have been the victim of "universal default". If you're late on another card, even from a different company, the company can jack up your rate. Not sure if AAA does that, but it's a possibility.

**SuzeOFan** · 05-14-2006, 07:51 AM

Re: CC Interest Rate Increased??

That same thing happened to me too not too long ago. It was on an MBNA visa. One month I'm paying 10.7 the next month I'm shocked to see it soar at 21%!

We contacted MBNA immediately and they said we didn't return their "refusal letter" . But here's the thing, if you refuse, they'll freeze you on your old rate but if you use it, that means you agree to the new rate...

When we argued with them, they brought the rate back down to the pre-shocker level. Credit cards are devils and simply out of control...

You have to call your card people and try to straighten it out.

**abowers** · 05-14-2006, 08:48 AM

Re: CC Interest Rate Increased??

This card is run through MBNA too! It was just a promotion through AAA when I signed up.

This wasn't a promotional rate -- it had a 2.9% interest rate for the first 6 months then went up to 9.9. I understood that and was ok with that, and it's been 9.9% until this current statement. haven't missed a payment on other cards.

**sweeps** · 05-14-2006, 09:27 AM

Re: CC Interest Rate Increased??

Then I would agree with Suze. Call them up and find out what's going on. Be prepared to walk if you have to.

**Ima saver** · 05-14-2006, 09:38 AM

Re: CC Interest Rate Increased??

I think they have the right to raise rates whenever they want. I would pay them off and not use them again. If you card stays paid off, you never care what the rate is anyway. I get 5 offers a week for 0% interest rate cards.

**abowers** · 05-14-2006, 10:39 AM

Re: CC Interest Rate Increased??

Yeah, the problem is I still have a bit of a balance with them, I'd love to pay it off all at once, but I'm not at that point right now. I've knocked the balance down quite a bit over the past few months... I'll just keep working at it.

**abowers** · 05-14-2006, 10:41 AM

Re: CC Interest Rate Increased??

PS, what is this refusal letter? I haven't used this card in a long time and I have no problem NOT using it while I pay it off. I'm completely ok with locking in at the old rate if I don't use it.

**SuzeOFan** · 05-14-2006, 12:48 PM

Re: CC Interest Rate Increased??

I have no idea. Never saw the refusal letter. It was only after I called them that I even heard of it!

It's always a good idea to talk to a real person (maybe a few real people!)
until you are satisfied with the answer.

We didn't like how we were being treated with MBNA and tranferred the balance to a Disney 0% until next February. That gives us a little breathing room. But we don't use the Disney card. We're just warehousing the debt there.

In the meantime we don't use ANY credit cards. I have a debit card for my online banking which pays for ATM use and is not related to any credit cards. What I'm doing is saving the money I owe in an ING account until the due date when I'll pay it in one lump sum come February. I do of course have to pay the minimum 2% every month.

But this year is 'get out of debt' year. And that is our goal.

Hope this helps.

**Ima saver** · 05-14-2006, 01:00 PM

Re: CC Interest Rate Increased??

Good luck guys, that is tough being stuck with 20% interest!! Hope you can find some 0% cards to transfer to.

**abowers** · 05-14-2006, 01:08 PM

Re: CC Interest Rate Increased??

Unfortunately my bank is Bank of America, and BOA just bought MBNA so I don't know that I'll have much sympathy from Bank of America if I look for a CC through them.

I've been in and out today, I'll call MBNA tomorrow when I have some time to sit down and be put on hold for a while... haha
I hate dealing with companies over the phone.

I haven't used this credit card in a long time, I've been just using my debit card while I work on paying down my debt. I just can't pay it down fast enough!

Edit: Doubling the Interest rate from 9.9 to 20.49 definitely won't help the situation either...

**Ima saver** · 05-14-2006, 01:28 PM

Re: CC Interest Rate Increased??

Gosh, I remember the good old days when humans answered the phones!!

**flash** · 05-15-2006, 10:52 AM

Re: CC Interest Rate Increased??

Can you open a new card with a 0% grace period, transfer the money over, and close the old account? Then pay off the new card before the rate expires?

**boefixepa** · 05-15-2006, 01:32 PM

Re: CC Interest Rate Increased??

I HATE credit cards when I have to carry a balance!! I've never found a good situation. They ONLY way I will use CC is if I have the cash to pay them off...either monthly or when the 0% interest period is up...exactly because of this. MBNA was the WORST of mine when I was trying to pay them off. I did end up transferring the balance and paying it off on another card because they were impossible to work with. I hope you have better luck than I did.

What I finally did was learn how to live within a budget...then take out a HELOC (home equity line of credit) and pay off everything. Now I focus all my attention on paying that off as fast as humanly possible. I hope you can do better, but CC exists to trap us if we owe them. That my opinion.

**abowers** · 05-15-2006, 03:02 PM

Re: CC Interest Rate Increased??

No equity... I'm about to take out student loans for grad school, and i'm almost thinking that with 20% interest on the credit card, I'd be better off to take out a little extra in student loans beyond tuition for living expenses, and use it toward paying off this terrible credit card. I probably can't use edu loans for that though...not sure.

CC Interest Rate Increased??