Re: Advanta, No Way, No How!
08-31-2008 07:51 AM
Yesterday, I had a similar experience with Advanta, who changed my rate for what seems to be no reason at all. They changed my rate from 7.99% to 20.59% with no late payments at all. Their rep claimed they sent me a letter 3 weeks ago that I did not receive. I electronically paid the balance in full and will not use the card until the problem is resolved. A perfect example of a reason to have extra credit cards.
I originally responded to their offer 33 months ago to get a new card for my new LLC and balance transfer (at 0%) money that was on the existing card at 10%. This gave me a true business card and a balance that did not appear on my personal credit report. I always paid more than minimums, usually 2-10 times the minimum. When the card was down to half of the original balance, I started using it as my normal business card, paying the balance as convenient. Sometimes 2-3 times minimum, sometimes paid in full. After using it as a normal card, the total balance never reached half of the credit limit and all payments were paid on time, electronically. Last payment was $675 against a balance of $2300, which is about 10 times minimum againt a balance that is 15% of the limit. That is about typical so I paid $16 interest the previous month. I was considering using the card to pay for half a forklift, since the 7.99% interest was only 1.5% more than a loan from the dealer and requires no paperwork. It also has flexible payments, which can be nice in a business environment.
My FICO has ranged from 712 to 758 during this time as I have used various low/zero interest offers on personal cards to pay down business debts that did not show on my personal credit report. For example, I used a 3.99% for life of the balance offer to pay off a 9% business truck loan, which is an outrageous rate for a truck loan but was the best I could get for that business when it was brand new. That balance now appears on my personal account and was a 20 point hit. Still the current 723 score should not alarm anyone. The only baddie on my report is a 30 day late that is 6.5 years old.
This is the worst treatment that I have received from a credit card company. I am completely amazed. What are they thinking?