So I get this pamphlet from Capital One today stating that they're raising my APR to 29.5% variable (!!!!) because of the state of the economy. Needless to say, I'm cancelling my account.
I can't even believe what the state of finances are coming to. I have an extremely high credit score and I can't believe what myself and other people with good credit are being subjected to. I pay all of my bills on time. It's just not right.
lizzie217
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Re: CC companies raising APR
DO NOT CANCEL! Stop using the card but canceling actually HURTS YOUR CREDIT. Pay off the card, cut it up and leave the account open...I know it is bizarre but I found out that canceling a cc is detrimental .HTH
jennandrolo
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Re: CC companies raising APR
Posted by lizzie217
DO NOT CANCEL! Stop using the card but canceling actually HURTS YOUR CREDIT. Pay off the card, cut it up and leave the account open...I know it is bizarre but I found out that canceling a cc is detrimental .HTH
agreed. i got the same letter but im not cancelling, just going to pay it off as quick as i can
msabla1
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Re: CC companies raising APR
Call your other credit cards and see about a balance transfer rate.
squeekietoy
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Re: CC companies raising APR
Posted by msabla1
Call your other credit cards and see about a balance transfer rate.
I was actually planning on paying off the card when I got my Income Tax check. I was just floored when I got that notice in the mail. It's such a steep increase.
bensgirl
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Re: CC companies raising APR
i agree with the previous posters--if you can help it, do not cancel your account. it will hurt your debt to income ratio. if you can, it's better to pay off the card and let it remain open. i got the same letter from capital one but luckily i have a small balance on there and can just pay it off. however, we have another credit card with the same issue and we did cancel that. we know it will hurt our credit score (well, DH's) but the balance is high and we know we can't pay it off immediately.
suze orman talks a lot about all this stuff on her website if you want to check it out.
nonetheless, cc companies S*CK!!!
del Rio
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Re: CC companies raising APR
That is so annoying and unfair! I do agree with others if you can pay it off do so and just leave the account open.
curiousgeorge
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Re: CC companies raising APR
Capital one raised me too. from 9% to 14% and my credit is awesome! Its ridiculous. I only have like 800 bucks from school books on there...but still...I could only imagine the people with high amounts. It should be illegal.
TrueLoveIn2008
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Re: CC companies raising APR
That is NUTS. I have great credit too - if one of my cards pulls this crap I will be PISSED.
Cancelling a card only hurts you IF you have a lot of debt. If you pay off that card and maybe even another, and then cancel, your credit score should not be affected too much. It's all about debt to income ratio AND debt vs. the amount of credit you have available ... that said, I would keep it open if you can, esp. if you have a high credit limit on it.
I had a capital one card a while ago, got it because it was an awesome intro rate - and my payment was late by like 3 days and they bumped it up like 10%. I cancelled the card immediately. I think they BLOW.
futuremrsfab
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Re: CC companies raising APR
you can negotiate with them- I have an Amex card that I have had since college- they raised my rate, I called and threatened to cancel my card- my former rate was 9.9% and they wanted to move it to 14.5%- we settled on 12%. Try calling and complaining. Tell them you have an excellent credit score and are a long time customer- they will probably work with you! Good luck!
