So I Get A Form Letter From Credit Card Co. Monday.......

Discussion in 'Et Cetera, Et Cetera' started by HellsKitchenmanNYC, Nov 19, 2008.

  1. HellsKitchenmanNYC

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    ............telling me they're raisiing my interest rate from 9.9 to 14 something. WTF? I pay ALL my credit card bills on time, and more than the minimum. Included in the letter in small print is the fact that I can call them and tell them I don't want this to happen. BUT If I do my accoun will be closed. WTF? Then I get an email today from the credit agency saying my credit score has changed 20 points. I was quite excited thinking I went up in score for being so good at paying.
    THEN I GO and check my credit score and it''s ACTUALLY been LOWERED 50 points! WTF?
    What is going on w/this country and all this financial stuff?!!!!
    I only applied for that card b/c the interest was below 10%. A big WTF to HSBC!
     
  2. slurper_la

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    retain the lower amount and close the account

    this is some of the fallout of the bankruptcy bill passed by the republicans

    write to your congressman explaining the circumstances and demand that the 111th congress revisit the banking rules
     
  3. B_Lightkeeper

    B_Lightkeeper New Member

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    Have you recently applied or inquired about a new or different credit card?

    Seems everytime you do it is reported to the three credit reporting agencies.

    BTW, you are allowed, by law, to get your credit history free once a year. Since there are three companies, do one after the first of the year, around May or June contact the second company and the towards the end of the year, do the last one.

    Your FICO score will probably be different according to the three. That's a damn shame!
     
  4. B_Think_Kink

    B_Think_Kink New Member

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    My interest rate is something like 17.9%... but I also don't use that credit card ever, it's only ever been activated.
     
  5. exwhyzee

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    Makes me glad I don't have a credit card.

    My dad recently had a similar experience HKM. Very strange stuff indeed.
     
  6. HellsKitchenmanNYC

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    Unfort.u HAVE to have a credit card these days. You can't book flights etc w/o one. PLUS they come in handy sometimes.
    I have applied for a card in ages or used for anything but the mundane in ages. No mmortgages here etc......It makes no sense and makes me VERY mad!
     
  7. B_spotted_duck

    B_spotted_duck New Member

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    Did you by any chance miss some other bill? not necessarily a CC but, say, your cell bill, your electric/gas, student loan, anything? or bounce a check? Look up "Universal Default" sometime-- if you miss anything to anyone for any reason, some CC companies use that as a reason to bump your rates up, even if it has nothing to do with them.
     
  8. HellsKitchenmanNYC

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    Nope missed nothing and my cell isn't reported to the credit reporting agencies. WHY on earth would my credit rating fall that far? ACK! I don't pay gas/elec. it's included in my rent. I only have 3 bills..my phone, internet and 2 credit cards..oh that's 4 but I'm never late on any of them.
     
  9. 1BiGG1

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    My first response would be it was in the fine print of the contract when you applied saying they will pull your credit periodically and can adjust your interest rate according too their findings like lower FICO score, high DTI (debt-to-income), high balances on existing credit etc.

    Its happening all over with everything including insurance rates right now. “Risk” costs more now.
     
  10. 1BiGG1

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    Only having a few trade lines on your credit report = each has a greater effect on your FICO score.

    If your balances are above half your credit line it will have a negative effect. If they are near the top of your credit line they will have a really negative effect.
     
  11. HellsKitchenmanNYC

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    Nope not near half my credit line. This makes me wonder even more!
     
  12. chris4869

    chris4869 New Member

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    Don't close the account unless it's a merchant card like Sears, Macy, etc. It'll work against you and lower your credit score even more if you close it. They count the total of your credits vs the total amount you owe on all the cards. It's a debt vs credit ratio.

    I suggest you just don't use the card.
     
  13. Pecker

    Pecker Retired Moderator
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    In the present credit atmosphere, although rates have gone down, don't be surprised to see higher rates. Three of my credit cards notified me this month that they have gone up 1%.

    5% is excessive. Check around for another company which will allow you to transfer your balance to them for a lower rate.
     
  14. HellsKitchenmanNYC

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    I don't wanna ck around now, tho it's a good idea, as they'll show on my credit report. I just think this is SO unfair. Someone in government needs to stop this. We're suckers at their whim.
     
  15. Deno

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    my rates have not gone up but my credit limit on 2 of my cards have been decreased. Lol no big deal I don't use them anyway and there still over 3500 dollars.
     
  16. HazelGod

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    To the OP, I want to ask an honest question...why should the interest rate on your cards matter?

    Why carry any balance that they can charge you interest on? Just pay them completely off every month...problem solved.
     
  17. HellsKitchenmanNYC

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    Pay it off every month? lol....Why not just pay for something then at the store? That's not the point. The point is this all seems so random and unfair!
     
  18. Northland

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    The 10% rate was perhaps just a method to get your business. Then again, the credit people are trying to make up for their losses as various people file for bankruptcy and it's the active customer who pays.

    An additional thing to keep in mind is that carrying a low balance-or even worse as one person mentioned, paying off monthly-can negatively alter your credit rating. Of course paying off monthly should be a welcome thing; however, then the lender receives no profit from you.

    If you have a copy of your most recent credit reports prior to this 50 point change, sift through line by line to find what might be happening.


    At the very least contact HSBC and talk with someone at a higher level, they may be able to return your lending fee to 10% or at least keep it under the 15% (or as you indicated 14.something) it has currently risen to. It's at least worth a try. I faced this with a lender when they upped it to 19%. I only had a balance of $400 at the time. When the balance due to a whole myriad of expenses was over $5,000. the rate was 12.9%. I called and they dropped me down to a 13.5% and it has stayed there for over a year.
     
  19. HazelGod

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    lol ?

    I don't see what's so amusing about the notion of not spending more money than you actually have. But there's nothing random nor unfair about your rate increase or score drop...just read the terms and conditions of your cardholder agreement.

    As to why use the card, there are lots of reasons: purchase protection, convenience & security of not handling cash, accumulation of rewards/points, ability to conduct business via phone/internet, centralized management and tracking of your expenditures, and plenty others I'm sure. The better question would be why so many people seem to think of their credit cards as some sort of magic cash-balance enhancer.
     
  20. Xcuze

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    I agree. Personally I was raised to only buy what u can pay outright for. I hate debt so I avoid credit cards. I use debit cards only.
     
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