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they could, that is up until when the law changes in 2010 when issuers will be barred from RJ under certain circumstances.
@Anonymous wrote:
@Anonymous wrote:The thing that I have noticed with most of these, as well as my own letter, is that they state that the current rate will now be considered a "promotional rate." This is why the letters came out now for rate hikes that will take effect in 2011. By declaring your current rate a promotional rate they have more flexibility to stick it to you sooner than 2011 and possibly even jack you up to the new default rate.
Why would they have to declare a promotional rate to stick it to us though?
I was always under the impression a CCC could jack up your APR, CLD or close your account whenever they wish for whatever reason.
So, what's the point in turning our APR into a promotion, and then forewarning us about a RJ ws almost two years down the road, just so they can have more flexibility when they don't really need it?
@Anonymous wrote:The thing that I have noticed with most of these, as well as my own letter, is that they state that the current rate will now be considered a "promotional rate." This is why the letters came out now for rate hikes that will take effect in 2011. By declaring your current rate a promotional rate they have more flexibility to stick it to you sooner than 2011 and possibly even jack you up to the new default rate.
Under the new law, if you get a rate hike for any reason after 6 months if the situation that caused the rate jack no longer exists, they have to lower your APR back to the original rate.
By declaring the current rate as promotional, they are saying that your current rate is temporary and your actual APR in regards to the new law is the higher rate they are sending in these letters. Because you did not opt out of this change you accepted the rate, and now when they hike the rate up in Jan. 2011 it falls under the exception to the 6 month APR rule I stated above.
They just used the new law to give you a rate hike
PS- Both my accounts got boosted from 6 and 7% to 15.9%
Well, my Macy's store card APR is 22.8%. My DW uses on regular bases, we have nice CL and have not yet paid a penny of financial charges.
So, IMHO, APR is not a reason to SD a card.
@YoungEntrepeneur wrote:
I know that this is a little off topic but I receive a letter from Chase today stating that my interest rate for purchases and balance transfers is going to increase from 17.24% to 20.24%. That just gives me another reason to not use the card.
@wmarat wrote:Well, my Macy's store card APR is 22.8%. My DW uses on regular bases, we have nice CL and have not yet paid a penny of financial charges.
So, IMHO, APR is not a reason to SD a card.
@YoungEntrepeneur wrote:
I know that this is a little off topic but I receive a letter from Chase today stating that my interest rate for purchases and balance transfers is going to increase from 17.24% to 20.24%. That just gives me another reason to not use the card.
If you PIF, yes, I agree. I don't normally even look at my interest rates because it makes no difference to me.
Ralbusta is correct. All the banks are doing is getting in the door before the new CC laws go into effect. By doing this, when they increase your APR to the default APR they will still be in compliance with the new laws. I already got my Change of terms from CHASE " Due to the current economic climate" my APR is going to be 19.99% + prime at approximately 3.75%. This is a card that was converted from WAMU with an APR of 12.99%.
I always PIF anyway, so I'll just keep spending like I always do.
I got mine today - a slightly different Rate Jack. Not too bad considering.
My One Year 0% interest on purchases and transfers ended last statement and the new interest rate is 9.99%. Time to start paying it down quickly.
The Rate Jack notice says Cash Advance and Penalty APR rates are increased July 2, 2009. I don't care since I wouldn't do a non-promotional Cash Advance. It is going up from silly to silly plus.
The regular rate for purchases and balance transfers is going up to 17.9% also stated as prime plus 14.65%. BUT NOT UNTIL SEPTEMBER, 2011. THATS 2 years and 4 months.
I see that the current rate is a promo rate now. All in all reasonable in today's market. The question is if we will consider 17.9% reasonable 2+ years from now. I can't imagine ever carrying a balance at that rate. I'm choking over 9.99%.
Got my notice of change in terms today from Cap one, if i remember correctly it will be going to 26%. YIKES!