Sudden APR Increases on my CC's

[DI]

You have balances totaling $16,044.   Are you planning to PIF those soon?  If not, with those high APR, you may want to consolidate the accounts with a loan. 

[chopperacn]

Yes DI,

I am planning to pay them off in next couple of months.

I wonder if they will roll back the APR's once I PIF.

Lesson learnt: Dont charge the CC's all at once even though you have high CL.Now a days you never know what might trigger the banks to pull something like this.

[DI]

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@chopperacn wrote:

Yes DI,

I am planning to pay them off in next couple of months.

I wonder if they will roll back the APR's once I PIF.

Lesson learnt: Dont charge the CC's all at once even though you have high CL.Now a days you never know what might trigger the banks to pull something like this.

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They may not roll back the APRs immediately.  But, maybe after six months of ARs, they probably will decrease the APRs. 

[BoSox617]

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@chopperacn wrote:

I am planning to pay them off in next couple of months.

I wonder if they will roll back the APR's once I PIF.

Lesson learnt: Dont charge the CC's all at once even though you have high CL.Now a days you never know what might trigger the banks to pull something like this.

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Hi Chopperacn,

I'm really sorry this happened.  You may want to consider calling/writing to explain that you were vacationing overseas, and bring up your good payment history and account management.  I might not expect an automatic APR reduction once you PIF, but PIFing may help your case given your history.  Perhaps they will agree to reduce the increases after some pre-determined amount of time (perhaps your card agreements state when default APRs may be reduced).

Many CCs watch to determine payment patterns/habits - strays from your ypical behavior can send off red flags.  As you pointed out, allowing balances to report on all cards simultaneously can get CCs nervous.  But you stated that you typically PIF before statement cut each month anyway, so once these current balances are taken care of, you actually can avoid the impact of the APR increases on future spending. 

I wish you the best of luck, I hope things work out!

[RockinRay]

I guess if it were me, after you PIF, I would wait for the balances to update on the CRS, then I would give them a call and ask them to lower the rate.

It sounds to me like you have a good track record of no late payments for the last 10 years so I would for sure call and argue my case!

But, that is me and in my mind, there are other banks / card companies that want my business so if they do not want to play the game, see ya later!

JMO - for what it is worth and most of the time accoring to my wife, it is not worth very much! 

Ray

[JonStur]

Unfortunately most business decisions made by CCCs rarely ever benefit we consumers. The best you can do is get your balances back down and hopefully in time you can convince them to lower your APRs again..

[Anonymous]

The Federal Open Market Committee didn't change the prime last month so it must be something else.

[anybodii]

Is this normal for credit card companies to do this? It just seems a little odd that they all decided to raise rates. I understand why and how they do it, but especially someone who has a long clean record with them who pays in full, why piss off a long time customer? And then, is it smarter to just max one credit card out instead of evening it out among other credit cards? I know I've heard this can look bad, especially to that one card, but then I know when applying a lot of credit card companies do not like to see a balance on all credit cards. Just curious, I normally only carry a balance on one credit card, right now I've been paying the minimum to hold on to some cash while I have 0% APR, I have the money to PIF, should I just pay it completely off?

[DI]

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@Anonymous wrote:

The Federal Open Market Committee didn't change the prime last month so it must be something else.

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Yup, still the same according to Wall Street Journal

[daylove]

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@chopperacn wrote:

Nope.No late payments at all since last 10 years.

Called Chase and PNC and they told me they had indeed sent me the notification, I may have missed that.They also said that in one month, balances increased on all my CC's and thats a major RISK.

I was on a vacation in Europe and thats how the balances increased on the CC's.

Everymonth, I run around 3k on my cards and pay off in full before the statement cuts.

First time, I had a deviation and this is what they do.

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Ditch the credit cards and get a charge card.