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Credit Cards Rates Increase Despite Payment History: One Woman Saw Her Monthly Payment Jump $400
ABC News ^ | Feb. 12, 2008 | CHRIS CUOMO, JIM BUNN AND IMAEYEN IBANGA

Posted on 02/13/2008 7:59:39 AM PST by Alex Murphy

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To: TomGuy

Our credit card company just sent us a letter telling us there will be a $75 ANNUAL FEE on our next statement. I sent them a letter saying IF there is a $75 FEE we will find another credit card company. Paying to USE your credit card is idiotic.


41 posted on 02/13/2008 8:28:05 AM PST by goodnesswins (We are not going to let McCain go all the way, when we’ve just had a FIRST date!)
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To: TomGuy

Our credit card company just sent us a letter telling us there will be a $75 ANNUAL FEE on our next statement. I sent them a letter saying IF there is a $75 FEE we will immediately cancel their card and (easily) find another credit card company. Paying to USE your credit card is idiotic.


42 posted on 02/13/2008 8:28:37 AM PST by goodnesswins (We are not going to let McCain go all the way, when we’ve just had a FIRST date!)
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To: goodnesswins

“This lady is using her CC like a bank loan.”

A couple of years ago, my CC debt was getting slightly out of hand so I used a balance transfer to one my cards for 3.99% on the life of the loan. Banks can’t beat that!

However, payments MUST be made on time, or they will slam me with a higher rate.

It allowed me to pay it off in about a year...and I closed the account. Just use AMEX now (have to pay off balance) and VISA check card.


43 posted on 02/13/2008 8:29:00 AM PST by Slapshot68
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To: Alex Murphy

Those were my exact thoughts when I saw this segment yesterday. How can one blame the CC company when a woman, who is already carrying much more debt than she can afford, goes out and applies for another card? This is a red alert that the company’s balance will not get paid, hence the increased interest rate.


44 posted on 02/13/2008 8:30:13 AM PST by CASchack
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To: Slapshot68

LOL...like I said...

Seriously, many people are idiots when it comes to money.


45 posted on 02/13/2008 8:31:00 AM PST by coop71 (Being a redhead means never having to say you're sorry...)
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To: Alex Murphy

Something’s not right here. In my experience, when the rate increases the cardholder has the option to close the account and pay off the balance at the existing rate.

Capital One increased their interest rate of everybody, and that was an option. I discussed it with them when I called to find out why the rate increased, but since it pay it off every month anyway it wasn’t an issue.


46 posted on 02/13/2008 8:32:35 AM PST by Not A Snowbird (Some people are like slinkys, the idea of them tumbling down a flight of stairs makes you smile.)
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To: goodnesswins

Which company was that?


47 posted on 02/13/2008 8:33:27 AM PST by Not A Snowbird (Some people are like slinkys, the idea of them tumbling down a flight of stairs makes you smile.)
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To: Alex Murphy
They bumped her to a higher rate because something in her credit file indicated that there was now a higher risk of default.

This happens for a variety of reasons, and the most common is a history of balance transfers with continuing increases in debt to asset ratios.

If it was simply arbitrary in nature, she is with the wrong credit card company and this company is simply trying to improve it's bottom line.

All these companies now have tiers, usually three of them that they will move you into or out of depending on your credit file. It's a bit of a game to understand how this works, but one thing for certain, it pays to know what is in your file so that you can make it better and qualify for lower rates.

IMHO......

48 posted on 02/13/2008 8:34:43 AM PST by Cold Heat (NO! (you can infer any meaning you choose))
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To: tessalu

If you use the card and pay the balance every month, you pay NO INTEREST.


49 posted on 02/13/2008 8:35:08 AM PST by seekthetruth
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To: Alex Murphy

I believe in capitalism but sometimes it is really hard to defend these credit card critters.

Still there is much to be said for never buying anything if you cannot pay for it when the bill comes due. I use credit cards only for convenience so I dont have to carry cash.


50 posted on 02/13/2008 8:35:26 AM PST by freespirited (The worst Republican is far preferable to the best Democrat.)
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To: SandyInSeattle
In my experience, when the rate increases the cardholder has the option to close the account and pay off the balance at the existing rate.

True, the issuer is required to give fifteen days notice prior to changing the terms, including the interest rate. However, from personal experience, many issuers either never send out the letter, or it gets lost in the mail, or it looks like junk mail and gets tossed by accident.

51 posted on 02/13/2008 8:36:39 AM PST by rabscuttle385 (Admin Moderator for President. No amnesty for the establishment—Republican and Democrat!)
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To: freespirited

“I believe in capitalism but sometimes it is really hard to defend these credit card critters.”

A lot of them are slime, no doubt....but the main premise of our free market economy has always been caveat emptor. Problem is that people are lazy and lacking in common sense...and they want gov’t to protect them from themselves.

So even though it’s hard on the eyes, read the mice type. lol


52 posted on 02/13/2008 8:38:44 AM PST by Slapshot68
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To: TomGuy

Who was the card with, just curious....seen similar crap from Cap One and Chase.


53 posted on 02/13/2008 8:40:02 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: TomGuy

Who was the card with, just curious....seen similar crap from Cap One and Chase. If you still have the account, never mind.


54 posted on 02/13/2008 8:40:23 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: Alex Murphy

how people let Credit Card debt get out of control is beyond me
when i got my first card in College i began to use it for everyday expenses and pay it off every bloody month. no balance - no interest payments. to this day i still use it and get oodles of free stuff with points and such. people need to control their spending then things like this wont happen.


55 posted on 02/13/2008 8:46:12 AM PST by DM1
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To: rabscuttle385

Good point. My notice was on my statement, but who reads their statement word for word? Two months had passed before I realized the interest rate had changed.


56 posted on 02/13/2008 8:52:52 AM PST by Not A Snowbird (Some people are like slinkys, the idea of them tumbling down a flight of stairs makes you smile.)
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To: SandyInSeattle

It’s an Alaska Air VISA through Bank of America


57 posted on 02/13/2008 8:53:06 AM PST by goodnesswins (We are not going to let McCain go all the way, when we’ve just had a FIRST date!)
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To: goodnesswins

Ah, yes.

I have that little critter. I shall not be renewing. (Pay $75 to get a $50 companion fare?! Shame on me for not reading the fine print.)


58 posted on 02/13/2008 8:56:31 AM PST by Not A Snowbird (Some people are like slinkys, the idea of them tumbling down a flight of stairs makes you smile.)
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To: Notary Sojac
It’s not always FUN to live within your means but if you want to be responsible it is the right thing to do.
59 posted on 02/13/2008 9:02:07 AM PST by nmh (Mike Huckabee the "religious" humanist that pushes socialism! (Clinton/Carter combo))
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To: SandyInSeattle

Well....this has happened before (although usually it just shows up on our bill)....and I’ve called and told them to credit us, or we are switching....and they do. This time they sent a letter....we’ll see what happens. Since we pay our bill off each month they really aren’t making anything on us....sooo....maybe they do not want us anymore. Plus, I just used the 30,000 miles we had from that card for two flights to Phoenix!!!


60 posted on 02/13/2008 9:02:33 AM PST by goodnesswins (We are not going to let McCain go all the way, when we’ve just had a FIRST date!)
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