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ocboy949
Posts: 163
Registered: ‎03-04-2010
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Scared that Capital One will raise my APR

I'm an authorized user on my mom's Cap1 MC. It does have a high balance of $5,199 and the CL is $5,200...so basically maxed. The current APR is 7.62 for purchases and I'm wondering under what circumstances would they raise the APR? I have never been late (i'm the one paying the card) and always pay it well before the due date. I'm just scared that the APR will get jacked up and I'll be screwed.

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(21 years old)
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crosbyk1
Posts: 485
Registered: ‎02-17-2008
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Re: Scared that Capital One will raise my APR

They could up your APR at any time they want. I believe with the new card act the interest rate has to stay the same on existing balances.


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ocboy949
Posts: 163
Registered: ‎03-04-2010
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Re: Scared that Capital One will raise my APR

 


crosbyk1 wrote:

They could up your APR at any time they want. I believe with the new card act the interest rate has to stay the same on existing balances.


 

Oh then I'm not so concerned then...or should I be? I mean lets say they raise the APR to 19.9%, the current balance of $5,199 would remain on the original 7.62?

 

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Cleanmachine
Posts: 399
Registered: ‎04-30-2008
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Re: Scared that Capital One will raise my APR

With all due respect and based on your current situation, you are in violation of the Terms & Conditions of your contract with Capital One.

 

You have exceeded you credit limit and they could/would hold you in default and raise your APR.

 

You have stated your current Credit Limit is $5,200.00

 

Your Current Balance $5,199.00 

 

Your Current APR 7.62% on the daily balance.

 

Just using your APR you are over your credit limit the first day your Balance of $5,199.00 was posted to your account.

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score_building
Posts: 3,577
Registered: ‎01-10-2008
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Re: Scared that Capital One will raise my APR

[ Edited ]

Presumably the current balance already includes fees and interest accrued from previous statement.

 

If you can't stay w/i at least 500 of limit, stay within 400, or 300 or 200, the best you can do...

 

but to ride the CL within $1 is harsh treatment of the primary's acct and is inviting OTL and AA.  Appearing desperate by maxing out cards also seems to be one of the most surefire ways to prompt AA.

 

Of course pay down entire bal as aggressively as possible but consider making an immediate or ASAP payment for approx 6% of the outstanding balance to bolster payment history and get some breathing room.  

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Kiwill
Posts: 328
Registered: ‎09-01-2009
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Re: Scared that Capital One will raise my APR

Yes, my account just went to the defaulted penalty APR due to being over the limit.  I am usually really good at keeping it under the limit but i forgot about a monthly charge that debits from my cap1 account and it took it over the limit from 14% to 23%!  I immediately did a BT and now that card is sock drawered and the soul purpose will be credit grooming.  Speaking of which, I have to go and call the company so that they wont debit that account any more:smileysurprised:.


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Cleanmachine
Posts: 399
Registered: ‎04-30-2008
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Re: Scared that Capital One will raise my APR

One "MUST" remember, that interest is calculated daily and applied to the balance at the end of each day.

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pumbaablah
Posts: 190
Registered: ‎08-14-2008
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Re: Scared that Capital One will raise my APR

19 years old with that kind of debt already. Hey, well at least you have a chance to learn early in life and have enough time to correct it. Might be a good idea to get out of being an AU on the card. You'll for sure get a bump in scores. Time to knock that debt down in chunks. At that APR it'll be hard

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PhillyGuy215
Posts: 165
Registered: ‎03-22-2009
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Re: Scared that Capital One will raise my APR

Maxed out cards suck.   It's at this stage of the game where if you get into any kind of financial hiccup, you will probably give up paying or pay less.

 

CapitalOne DOES SUE.   They're the most vicious about it and they typically don't do it through a collections agency, they go straight to your local jurisdiction and attempt to file for a default judgment.   Because you are AU on the account, they can go after either you or your parent should you default on this account.

 

 

So it's time to step back and look at it.   Your credit card is useless right now.   CapitalOne is balance chasing you, and they can jack you to the Default APR at any time of their choosing.   It's not just going over the limit or late-pays that can automatically trigger RJ... but if you read your contract carefully that you received with the card, it's "any material situation in which Capital One believes affects your ability to pay your balance" can trigger an adverse action.    That's a legal way of saying "anything" can trigger a RJ.    Luckily the Card Act does protect you from some of this, but it won't protect you if you pay one second late on your account.

 

 

 

So make a plan:

 

-  The cards need to go in the sock drawer.   You can't use them anyway.

-  Get yourself taken off AU so you can get this account off your credit reports.  It's bringing your FICO scores down.

-  Set up an automatic bill payment to pay Capital One a dollar amount MORE than the minimum payment.   If your minimum payment is $25.00, try $60.00 or better still, $100.   Whatever you can manage.    You should try to make this payment automatically through your bank's billpay so that way you will "forget" about it and your spending habits will adjust to it.

-  Make sure you NEVER default on this account or you'll suffer CapOne's crushing 33% APR.

 

 

 

If you can get your card removed from your CRs since you are AU on them, move your bank accounts over to a credit union that offers a decent credit card program, for instance Navy Federal.    Credit Unions are forbidden from charging > 18% APR.     You can continue paying your debt on your mom's credit card and then do a balance transfer to the cheaper Credit Union credit card once you open it so you can pay the debt faster that way.

 

 

 

Good luck!

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MarineVietVet
Posts: 14,902
Registered: ‎07-14-2009
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Re: Scared that Capital One will raise my APR

 


PhillyGuy215 wrote:

Maxed out cards suck.   It's at this stage of the game where if you get into any kind of financial hiccup, you will probably give up paying or pay less.

 

CapitalOne DOES SUE.   They're the most vicious about it and they typically don't do it through a collections agency, they go straight to your local jurisdiction and attempt to file for a default judgment.   Because you are AU on the account, they can go after either you or your parent should you default on this account.

 


 

 

This is not correct. From a Cap 1 message when I added my son as an AU:

 

As you requested, we've added xxxxxxxx  to your account as an
authorized user.

Remember that an authorized user:
• Is an individual listed on the credit card account.
• Is issued a card in his or her name and has charging privileges.
• Is reported to the credit reporting agencies as an authorized user
(unless it’s a Small Business account).

Can request certain, account specific information:
• All transaction information (including transactions by other users)
• Balance
• Amount due
• Account status (past due, overlimit, closed, etc.)
• Make a Pay-By-Phone payment
• Report a card lost or stolen
• Can be any age.
• Can request a card for him or her self.
• Can remove him or her self from the account.


But an authorized user does not:
• Have financial responsibility for the account.

• Have to be a U.S. citizen or resident.

Additionally, an authorized user cannot:
• Write or sign checks issued off the account.
• Add or delete other users.
• Request a balance transfer.
• Request items to be issued (example: credit cards, PINs or statements)
except their own replacement card.
• Request account fees to be credited.



 
  
  

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