New credit card rules... they increased my rates...

[lagb]

Capital One increased the rates on our credit cards by ALOT, big surprise there, huh?  Anyway.  I'd like to pay off these cards.  We have two, each with relatively balances - about $1500.00 total combined.  I have another card with a balance of $800.00.  I've never been late on any of these cards, and in fact have had very good credit over the past 5 years.  But some old baddies keep our scores low.

I'm thinking of getting a personal loan to pay off these cards and consolidate them into a lower interest rate and then lock away the credit cards.  I don't want to close them as they are the only cards we have and I should show some credit on my reports, right?  I know that I won't use them again unless it's a TRUE emergency.  I have pretty good willpower and discipline now that I've learned my lesson, lol.  \

I'd love to pay them off without a loan, but I really don't have that big chunk o change in my bank right now.  I'm paying off one card at $100.00 / month, and the others are between $25-50 a month.  They are well over minimum monthly due ($15.00 / month), but it's still going to be a while before they get paid off completely and I'd really rather NOT pay the 17-21% interest that Cap 1 wants to charge me!!!

My score is about 661 but will increase soon. My baddies start coming off within the next 6 months. What do you think my chances are? 

[Anonymous]

Credit is, for the masses no longer as cheap for the consumer as it once was.

You can blame the evil banks, or you can blame the economic climate or you can blame the new CC Laws going into effect.

17-21% is becoming a standard rate thanks to the new credit card laws. Banks are unable to make/apply penalty high interest rates on customers, so they are in the process of making their "standard" rates higher, and then offering short term, but renewable interest rates available for customers.

If they are only increasing you to 17-21, you are kinda lucky, higher risk people got much higher increases.

[Anonymous]

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@Anonymous wrote:

Credit is, for the masses no longer as cheap for the consumer as it once was.

You can blame the evil banks, or you can blame the economic climate or you can blame the new CC Laws going into effect.

17-21% is becoming a standard rate thanks to the new credit card laws. Banks are unable to make/apply penalty high interest rates on customers, so they are in the process of making their "standard" rates higher, and then offering short term, but renewable interest rates available for customers.

If they are only increasing you to 17-21, you are kinda lucky, higher risk people got much higher increases.

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  or you can be like me and besides blaming greed and the evil banks, also blame the fact the new laws don't take effect until next Feb.  Giving the evil banks the time do do all this

Message Edited by ExcellCR on 08-21-2009 11:17 PM

[voidman]

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@Anonymous wrote:

  or you can be like me and besides blaming greed and the evil banks, also blame the fact the new laws don't take effect until next Feb.  Giving the evil banks the time do do all this

Message Edited by ExcellCR on 08-21-2009 11:17 PM

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The banks had been overing lower interest to low risk people by charging higer interest rates on high risk people and people how carry balance for a long time, default, etc .etc. 

Now with the new law, the balance needs to be adjusted, those people close to the center of the balance moves to the other side of the balance. 

Feb gives enough time for the banks to do that. 

PIFers don't have to worry about it anyway. But yeah it would suck being hit by higher apr when things are not going nice in life. 

[Anonymous]

I suppose that's why I, with FICOs never out of the excellent range and util almost always well under 10%, have had rate increases from 9.24V to 12.99V and 6.9F to 15.9V... all due to the economic times. Yeah I PIF but it still sucks how greed is sticking it to good customers.

Message Edited by ExcellCR on 08-22-2009 02:36 PM