How often does a credit card raise it's rate

[hootown]

even though you are current and never missed a payment bc they see you are increasing your debt on the other credit cards you own? Is this a common scenario ?

[lrprn]

There are no secrets between the big credit card companies. Most of the new cc contracts include a clause that if you are late even one day on your payment to any credit company, any of the cc companies can increase your APR. It is NOT a good time to have a lot of cc debt or be making late payments. You can find your 12% APR becomes 29% overnight, even if you have never made a late payment to this particular credit card company. And it's all perfectly legal.

[danohio2831]

i had a american express card
7000 limit

6400 charged on it

never missed a payment

one day i got a letter and it said i was now considered high risk, my rate went from 6% to 21% and they lowered my credit limit to 3000. then they started charging me like a 160 $ over the limit fee cause they droped my limit

and i never missed a payment till that letter came, was the last time i ever paid a dime to them

[hootown]

Dan, did they raise it bc they thought you had too much debt on your other cards? I'm worried that this might happen to me too.

[AMISLANDER]

What???

Let me get this straight, a cc company can raise your interest rate if they find out you were late on a payment, but not necesarily the one that you didn't miss...i.e. Co. #1 could raise your rate if they find out you were late on your payment to Co. #3?

I'm really wondering why to even charge anything any more...

[lrprn]

Let me get this straight, a cc company can raise your interest rate if they find out you were late on a payment, but not necesarily the one that you didn't miss...i.e. Co. #1 could raise your rate if they find out you were late on your payment to Co. #3?

That's right. It's perfectly legal and it's happening to credit card owners all over America on a regular basis. This was our personal straw that broke the camel's back and why we ended up having to file bk. Once the cascade of rising APRs started, it was like a flood. We couldn't recover from multiple cc's suddenly having 29% to 33% APRs. The incredibly high minimum payments and late fees were killing us slowly but surely. Ch 13 was our only out.

[AMISLANDER]

Sounds like...

...the CC companies are making up $$ on the bk filers by getting outrageous with the interest rates when people trip & miss a payment here or there.....which can easily happen....wow.....I'm really afraid of this....my credit was so tight six years ago....when I was late w/payment I just called & told them I wanted the late fee dropped or else I was canceling the card...they used to bend over backwards in the '90's....total different scenario now...I'd say that one really only needs "ONE" cc...and since I guess I won't be applying for citi or chase...I'd don't want to get sucked back in on the small print (they were incl in my bk)...but man, I'm waiting a while...

[danohio2831]

Dan, did they raise it bc they thought you had too much debt on your other cards? I'm worried that this might happen to me too.

i guess on your credit report there is a debt to incom ratio, and it also lists you as high risk, high, medium , low risk exxcelent, maybe not in those words, but you get the idea

like i said, i never missed a payment, never was late 1 time, always paid 1 week before due date with online checking.

i got a letter that said i was a high risk creditor, and therefore they droped my credit limit

they started charging me a over the limit fee and almost 3 times the original interest

my over the limit fee and interest was like 300 a month

[danohio2831]

Let me get this straight, a cc company can raise your interest rate if they find out you were late on a payment, but not necesarily the one that you didn't miss...i.e. Co. #1 could raise your rate if they find out you were late on your payment to Co. #3?

I'm really wondering why to even charge anything any more...

i was never late, never never never, on any credit card

i got the letter, after that i said screw this, then i admit, they never got a payment at all after that letter. and other creditors followed that payment plan shortly

[Bobby'sGirl]

Same cc practices pushed me over edge.

That's right. It's perfectly legal and it's happening to credit card owners all over America on a regular basis. This was our personal straw that broke the camel's back and why we ended up having to file bk. Once the cascade of rising APRs started, it was like a flood. We couldn't recover from multiple cc's suddenly having 29% to 33% APRs. The incredibly high minimum payments and late fees were killing us slowly but surely. (LRPRN)

Had to run up cards for business needs and despite umpteen years of almost 800 credit scores, the credit card companies descended like vultures. Dropping limits, causing immediate late fees and jacking up rates without any actual lates. How they expected even minimum payments to be met then, no clue....

So no feeling guilty on my part walking away from those cards in BK.

[bethe23432]

This is the reason I decided to file for bk also. I had never missed a payment nor made a late payment on my five credit card accounts, nor any other credit account, despite the hardship that entailed when I was underemployed temporarily or unemployed briefly. Even so, Amex hit me up with 29% for no reason at all except a profile of being overextended. Chase did the same. My credit score had been around 700. It was actually painful for me to stop making those payments, so much of my integrity was tied up in paying on time and being responsible.

When they called to find out why I stopped making payments I told them exactly why. I said, "You and other CC companies have jacked my interest rate into oblivion and whereas I previously never missed a payment, I am now filing bankruptcy. If I tried to pay off my debts the old fashioned way it would take me over 100 years." They were so sorry to hear that!

I can't help but think if this keeps happening maybe the CC companies will get the message that they really ought not piss off their best customers that way.

I had my 341 meeting this week and I am just floored by how easy this has turned out to be. Discharge late November! I am done paying my lawyer and can now actually live on the income I make!

[anonymuse]

To give Discover a bit of credit (pardon the pun), after I made 6 months of on time minimum payments after no payments for a few months, they got rid of the universal default rate down to the normal rate and wiped out all of my late fees. Unfortunately, most people don't know what they can ask for when things aren't going well financially.

[Bobby'sGirl]

Didn't have Discover

But Chase and MBNA wouldn't budge for me. So they get $0 because I'm filing ch 7.

[razorguns]

this is why i always pick internet billing. never worry about late payments.

r

[anonymuse]

But Chase and MBNA wouldn't budge for me. So they get $0 because I'm filing ch 7.

But they still do--they have insurance for people that are BK plus there's got to be some kind of tax loophole that probably helps them out.