06-03-2010 09:40 AM
I've been banking with Wells Fargo Bank for about 10 years now, holding their platinum card for 7 years. I have a $9000 credit limit and it was my go to card for big purchases. I've always carried a balance on it of about $4K and always payed well over minimum every month... was doing an audit on my APR, which I had found was an unacceptable 19%.
So I called WFB Card Services and they had explained that they had bumped my APR from 16% (which was still a touch high, IMO) to 19% in November, simply because I did not respond to one of their mailers which stated I had to electively opt out of getting my rate bumped and that non response meant that I agreed to the terms and conditions. I told the rep that I obviously paid attention to my bills, but I generally disregarded mailers that appeared to be promotional. Nothing. I asked if WFB took these actions in lieu of the CARD Act, and the rep indicated it was a factor, but would not give a solid answer. I told him that I don't think my credit was the other factor, as I knew I had excellent credit, and he could see on his screen that I had a fantastic credit/payment history with them.
I indicated that Bank of America, who I had a card with for 5 years has been providing me with a non promotional purchase APR of 7.24%, prime included, yet WFB would absolutely not budge on giving me a reasonable APR, even when I said I can't logically see how I can justify using their credit card as much as I had, when I am getting much better rates from my other creditors, who seemed to appreciate the amount of business I was doing with them.
Apparently, they don't care if I start carrying my balances with other creditors and make lessmoney off of me on finance charges, they absolutely won't change the APR. The account representative was helpful and friendly and was audibly uncomfortable/disconcerted with the policies and my pressing of the issue, without speaking out against his employer, but could not commit to any kind of timetable when WFB would change their policy of locking down their cardholder's APR's. It was really disappointing.
So far, Bank of America is my best credit card, here's the rundown of the cards I have:
Name Age Balance/Limit APR
Wells Fargo Platinum 7yrs $2000/9000 19%
Bank of America Platinum 5yrs $500/5000 7.24%
American Express Blue 3yrs $48/3000 17.7%
Bank of America is the real winner, and I think they are probably capitalizing on WFB's stance with their cardholders. I'm probably going to buy a car through my credit union over the summer and see what they will offer me. Other than BOFA, these for profit (Credit Unions are non profit) banking institutions really don't seem to care about their customers.
06-03-2010 11:20 AM
APR is only one factor to consider when judging a card. At the end of the day, the interest rate only matters if you carry a balance. The goal is always finding banks and issuers that work in your best interest. For you, that may very well be BofA, for others, it could be someone else. That being said, I've heard enough horror stories about pretty much all of them to say that one is much better than the rest.
06-03-2010 11:51 AM
That's true. By the end of this month I'll have paid off the rest of my credit card balances and will be using them mostly for the 30 day grace period on purchases. It is nice to have a low APR on larger purchases where the balance would carry over for a few months, should I ever need it. Right now I don't have any car payments to worry about, but am planning to finance a car soon. Really interested how my lower utilization will reflect on my FICO scores (I believe my credit cards will report the new paid down balances this week), as the FICO scores in my sig are currently reflecting about 47% utilization at the time that I pulled it.
06-03-2010 03:53 PM
Mi--I also have a WFB Platinum. Although I don't carry a balance, they would only reduce the rate (from 16%) down to 9% for a few months. I use the card and will keep the card, as WFB is one of the more stable/quality banks IMO. Sounds like you have a good plan and will do well.
06-03-2010 10:32 PM
3 years back when i came into this country, I opened my bank account with WF and they were very helpful and needful and courteous with my needs and questions when opening the bank account.
Then I need a car, so I approched WF for a loan to buy a new car. (I knew nothing about fico stuff in this country). He applied for me and said that I do not qualify for the loan. I told him, I thought WF would help me with the car loan since I bank with them and have deposited some good money with them.
The banker said, for banking you come to me, for credit you should look somewhere else. Well, that was rude and shocking but yeah, that is the reality. If you do not like to do business with a creditor or a business then you move somewhere else. If you are not in the situation to choose someone else then you are stuck or at their mercy and that is your (our) problem and not the businesses.
Here I really don't see WF's problem and IMO 19% now a days is the new 15%