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Eclectic Thoughts from a Homeschool Mom » Credit Card Interest Rates Go Through The Roof!

Credit Card Interest Rates Go Through The Roof!

February 23rd, 2009

I just need to vent here. My husband and I very rarely use credit cards.
Honestly, I hate the things. We only use them for emergencies (i.e.
tires, surgery, etc.)

We have a $0 balance card that has a $13K limit on it. We haven’t used this card since 2007, but we keep it as our limit is high “just in case”. It has a 9.9% purchase fee & a 19.8% cash withdrawal fee.

In today’s mail, I got a notice saying that our card will go from 9.9%
to 17.9%!!! We have had this card for something like 8 years now. Oh my goodness!! The cash rate is going from 19.8% to 24.9%!

What on earth is going on? When I told my husband at lunch time, he
said: “That’s it. We are getting rid of that card!” What are these companies thinking? Penalize everyone with huge interest rates? Even those that have never been late on a payment? Wow…I guess we will need to look for another card company.

I went on the Clark Howard (my financial hero) to read about credit cards. Apparently, we aren’t the only ones. Capital One is doing a blanket 17.9% APR for all customers. American Express is right there with them. *sigh*

I keep saying it: The days of the customer being right are L-O-N-G gone. Say good-bye to customer service. As many people said on the Clark Howard site, don’t dare call your credit card company asking to lower your rates. At least half of those that did got a notice in the mail that their card was cancelled. So much for questioning the system.

2 Responses to “Credit Card Interest Rates Go Through The Roof!”

  1. Autumn_wind Says:

    Usually if you call and complain to the credit card company, they’ll reduce your interest rate, especially if you’re such a good customer. If they don’t give you the interest rate you want, tell them you want to cancel your credit card and ask for them to transfer you to the correct department. The people in the cancellation department usually have more power to change interest rates than the regular customer service representatives. I’ve been through this a few times now. Some credit card companies refuse to do lower your interest, or won’t lower it enough, so you may have to cancel your card. I hope this helps!

  2. Shan Says:

    Thanks so much for the advice. We have done this in the past. However, the folks on the Clarke Howard site were saying that many companies are letting folks just cancel their cards. They aren’t budging when it comes to changing the interest rates. How sad it is that because folks don’t pay their bills, it effects those that do.

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