CC Interest Rate Increased??

[abowers]

Re: CC Interest Rate Increased??

I called and talked to someone about the rate, he had at first said that they might be able to get it lower than 20, but not as low as 9. Then he came back and said they couldn't do any better. I asked why it increased, and he said it was because I was up near my credit limit at this time last year... I've been paying it down! If I was bad last year, then they should have punished me at the time, not a year later! They said to pay off as much as I can and call back in a couple months to see if they can get me a lower rate.
Gag me.

I don't think I'm going to have great luck getting a lower rate because I have a car loan in my name (~13k), as well as student loans (~16k), in addition to this card, and a couple others that are in good standing. Going to scrape together all my extra cash and see what I can do...

[JoyJoy]

Re: CC Interest Rate Increased??

Just a suggestion....try applying online for a card from HSBC, preferably the HSBC Mastercard. They approve instantly and they offer 0% balance transfer offers. Atleast you would know right away if you are approved and then you can transfer your balance from MBNA to them right away. I was in your predicament. Only the creditor was Chase. Chase said they had sent me a letter. I never received a letter from Chase. They raised my interest rate from 11% to 23.9% and I was paying more than the minimum and never late. I wasn't even late with any of my creditors. Their reason was "I may become a risk!" LOL.

I had just opened a HSBC savings account and I called regarding their Bank to Bank transfers. The CR asked me if I was interested in a 0% balance transfer offer for 12 months. I was disconnected so I went up to their website and applied for a credit card hoping I would get $4,500.00 to pay off Chase. I was approved for twice that much instantly.

Good luck!

[Ima saver]

Re: CC Interest Rate Increased??

Good for you Joy!!

[JoyJoy]

Re: CC Interest Rate Increased??

Good for you Joy!!

Thank you Ima!

[sakigt]

Re: CC Interest Rate Increased??

MBNA did the same thing to me. If I remember correctly if offered me the chance to cancel the card and pay back the balance at the old rate. I only had like $50 on it so I paid it off and never used the card again.

If that doesnt work transfer the balance somewhere?!

[Writer@Large]

Re: CC Interest Rate Increased??

What JoyJoy said: surf the debt to another card. I don't know the bank JJ refers to, but they're probably worth a try.

Once you've done that, call BoA and cancel the card. Don't make a show of it, or tell them off or anything; the guy or girl on the other end is just a phone jockey, and any bold statements from you will just end up as a funny story over lunch. If they ask you why you're canceling, tell them (they sometimes track these things), but again, don't take it out on them. BoA doesn't care about one P.O.'ed customer; you're a tiny drop in the vast pool of their debt profiteering.

Just be sure to avoid Chase. Oh, the stories I could tell about them!

--W@L

[JoyJoy]

Re: CC Interest Rate Increased??

Here's two websites that may help you with your decision to transfer balances to 0% APR and instant approval cards if you're in a hurry to know if you are approved.

http://www.creditcardguide.com/lowintro.html

http://www.creditcards.com/instant-approval.php

[abowers]

Re: CC Interest Rate Increased??

Hey everyone-- thanks for the responses so far--
I tried JoyJoy's websites, and applied for an HSBC card with 0% interest on balance transfers for 1 year. I was approved!

(I would like to add I was not approved for a Bank of America CC unless it was secured -- probably because BOA bought MBNA and they share all the info...which stinks, because I've liked BoA and have had my checking account there since we moved last summer)

My credit is not so fabulous, but not bad (which is why I have a balance on this terrible MBNA card). So I wonder why HSBC said yes and BoA said no.

Anyway, I was approved for $1000, which is cool, I will be transferring my balance and closing the MBNA account ASAP. I don't care to use this card for anything except to pay down the debt.

[JoyJoy]

Re: CC Interest Rate Increased??

Hey everyone-- thanks for the responses so far--
I tried JoyJoy's websites, and applied for an HSBC card with 0% interest on balance transfers for 1 year. I was approved!

(I would like to add I was not approved for a Bank of America CC unless it was secured -- probably because BOA bought MBNA and they share all the info...which stinks, because I've liked BoA and have had my checking account there since we moved last summer)

My credit is not so fabulous, but not bad (which is why I have a balance on this terrible MBNA card). So I wonder why HSBC said yes and BoA said no.

Anyway, I was approved for $1000, which is cool, I will be transferring my balance and closing the MBNA account ASAP. I don't care to use this card for anything except to pay down the debt.

Well great! I don't think it is adviseable to close MBNA if you have had them for several years as it may hurt your debt to ratio or your account history.

Good luck to you!

[poundwise]

Re: CC Interest Rate Increased??

Well great! I don't think it is adviseable to close MBNA if you have had them for several years as it may hurt your debt to ratio or your account history.

Good luck to you!

I echo the sentiment, that's great! And this advice by JoyJoy is also sound.

[abowers]

Re: CC Interest Rate Increased??

I've had them since March of 2004. I'm only 22, so I opened the card a couple years into my credit history, i guess. (first credit card and student loan was end of 2001/early 2002)

When I spoke to the dude at MBNA the other day he said to pay off a good chunk of the balance and then talk to them again -- I wonder if just transfer the balance and then talk to them about lowering the rate, and keep the card open for credit reasons?

Regarding that, I have a clothing store card that I don't use anymore and is paid off/has been paid off for some time, i think i've had it since july of 04. the credit limit is only a couple hundred dollars -- should i keep it open for the debt ratio, or get rid of it to have one less revolving credit account?

(keep in mind, I have $13k in car loan, $16k in undergrad loans, and an old navy/gap card all in good standing... and the mbna card)

[Tree0164]

Re: CC Interest Rate Increased??

Another reason why your rate may have gone up is if you were later on any other cc payments?

I think it is great that you were approved. Now play the surfing the balances game to get it all paid off.

With interest rates going up, cc interest rates will continue to increase as well.

Good luck!

[sakigt]

Re: CC Interest Rate Increased??

I've had them since March of 2004. I'm only 22, so I opened the card a couple years into my credit history, i guess. (first credit card and student loan was end of 2001/early 2002)

When I spoke to the dude at MBNA the other day he said to pay off a good chunk of the balance and then talk to them again -- I wonder if just transfer the balance and then talk to them about lowering the rate, and keep the card open for credit reasons?

Regarding that, I have a clothing store card that I don't use anymore and is paid off/has been paid off for some time, i think i've had it since july of 04. the credit limit is only a couple hundred dollars -- should i keep it open for the debt ratio, or get rid of it to have one less revolving credit account?

(keep in mind, I have $13k in car loan, $16k in undergrad loans, and an old navy/gap card all in good standing... and the mbna card)

STOP!

Is the MBNA your first card ever? If you close that account it will shorten the amount of credit history you have (which is important for us youngins).

For example, I dont use my Capital One card, but it was my 1st card when I was 18. If I cancelled it my credit history would shorten from 5 years to 3.5 years. A big difference for banks...

Dont cancel it. Just dont use it.

[abowers]

Re: CC Interest Rate Increased??

It's not my first card - My credit history starts in 2001, I have had this card since 2004. I haven't used it in about a year. I think after transferring the balance I'll still see if they'll lower the rate anyway, I just don't like the idea of having a 20% interest rate. I think maybe I will keep it open though regardless because it has a pretty high limit.

[Ima saver]

Re: CC Interest Rate Increased??

Don't close or cancel any credit cards, just put them away and don't use them,ever!