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Wednesday, November 18, 2009

Credit Cards

Yuck! After my hubby paid off my massive credit card debt years before we got married, I was determined to not get into that kind of trouble again! We have 3 cards now, 2 of which have a balance. We have 0 % until next year on both, and the cash in the bank to cover the charges. So, the plan was to pay these out for the duration of 0% period...I got notice yesterday that 1 of the companies is not only raising our rate, but also ending our 0% period. Why? Because they can. We have impeccable credit and payment histories, so it isn't something we did wrong. A friend just got notice recently about her rate increase also, so I guess this is what they are doing to alot of people. I can tell you now that I won't be paying 9.99 or 14.99% interest on anything! We will be paying off the balance this month and ending our business with the company! Just whining about it now...I knew we'd eventually pay the card off, just thought it would be another 6 months or so...I feel really poor now :-( I guess I better be even more careful with my spending since this payment will use up a large chunk of our savings.


Theresa said...

Have you tried calling your credit card that decided to reaise the APR?

My card tried raising mine (long story, but I lost the card and couldn't make a payment so they decided to raise it).

I called and explained the situation and they decided to review it and not do it.

I would definitely be calling and complaining and explaining that you had 0%.

You never know, it might work!
Good Luck :)

Anonymous said...

I'm in the same boat, must be a HSBC card. Just keep in mind if you cancel the card it has a very nasty effect on your credit report. I just canceled mine in the summer and my credit score dropped 60 points. I was told that by canceling the credit account it decreases the amount of "available credit" you have and there fore making you higher risk. We have some how managed to pay off all our debt and I keep 3 cards, to keep the credit rolling. I just use them for like gas and then pay them off each month. I would definitely like Theresa said call them and ask them to reevaluate the rate increase. Just be aware, I wish someone would have told me about this before I made a rash decision. Good Luck:)

beth said...

well, we just made a huge cash deposit & sent off payment to cut them off! Really rather just not mess with the company anymore...I think they raised us because they weren't making money on us!

I know if you have an open line of credit that you don't use, it will lower your credit score...I heard rumors about when you close an account, but my hubby is a banker & said he hasn't seen scores affected by closing after payoff...hmmm.