Credit Card Interest Rate Craziness

March 27th, 2010

Today we got a notice from our credit card company. Before I go into what lovely news we received from them, I’ll give you some background. My husband and I almost never use our credit cards. We only use them for emergencies (i.e. tires, medical, etc.). We own 3 cards and only 1 has a balance. We have impeccable credit and try to overpay whatever is due each month.

We have two used cars that we were paying on monthly. A while back, we decided to take the remainder due on the cars and do a balance transfer onto our credit card (the one that now has a balance). The amount was into the thousands, but our calculations showed that this was the better way to go with our car payments.

Back to this month. Somehow, we paid our credit card late. I think it was a day, maybe two, late. We’ve been great customers for years, and we felt horrible about paying late. It just happened. However, we overpaid what was due and thought nothing of it. We knew that a late fee would be coming. Now, I know that is the least of my worries.

Back to today’s mail. I open a notice from our credit card company that states because we were late, our interest rate is going to 17.34% from 7.99%!!!!! It doesn’t matter that we have been great customers that always pay more. It doesn’t matter that our payments have never bounced, or that we have a great credit score. I am SO ANGRY, I could spit nails!

Now what? I don’t want to completely cancel this card because I’ve read that doing that would harm our credit score. Do we transfer the balance elsewhere? I was reading that some credit card companies are coming to people and DOUBLING their monthly minimum payment after they are late on a payment. DOUBLING?! I’m about to have a mild heart attack here.

What is this world coming to? You are honest and make one slip up….financial institutions are going to get you back. *deep sigh*

One Response to “Credit Card Interest Rate Craziness”

  1. Amy Says:

    Shannon,

    I say to hell with the credit score! Who gives a flyin’ flip? Get them paid off asap and get out of the participating in the debt business altogether. (I’m sure you’ve heard of Dave Ramsay.)

    One time we had a credit card that had been bumped to 20% due to a similar situation. I think the balance was $2000.00 I committed myself to paying them off at $500 a month – and it nearly killed me – especially seeing them apply only $400 to my principle. But it was tuition well-paid to the university of life.

    Being debt-free is wonderful. We have managed to pay off the house as well. It is not easy, but the freedom and benefits are unbelievable. The borrower truly is slave to the lender.

    A

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