topic Re: FNBO APR Hike in Credit Cards

FNBO APR Hike

chuckwood — Wed, 17 Apr 2024 02:43:35 GMT

I have had my FNBO account for several years. I don't use it alot but I have it in rotation and always pay statement balances. I recieved a letter today from FNBO stating that they are raising my APR in June from 20.24 to 29.24. The letter just states they are raising it to what I might recieve on a similar card today. I don't carry balances so it technically will not affect me but the thought of that APR is scary. I am considering closing the account if they don't rethink that hike. Am I overreacting? I have not added or changed anything credit wise in almost 2 years.

Re: FNBO APR Hike

K-in-Boston — Wed, 17 Apr 2024 02:50:37 GMT

29.24% is fairly average for a credit card these days, even what some call "super prime" cards like Chase Sapphire Reserve are in that range. Interest rates shot way up. Credit union cards that were as low as 5-6% a few years ago are well into the teens today. You said you always pay your statement balance, so it's pretty moot. But if you need to carry a balance and are otherwise qualified, I'd just apply for something with a 0% balance transfer offer when and if you needed to carry a balance.

Re: FNBO APR Hike

CorpCrMgr1 — Wed, 17 Apr 2024 02:52:44 GMT

You are correct on closing the account if it has no place in your portfolio. Otherwise, since the rate has no bearing on you keep it.

Re: FNBO APR Hike

Zoostation1 — Wed, 17 Apr 2024 04:38:55 GMT

@K-in-BostonWhile rates have gone up quite a bit I would still view 29.24% as the high end of rates for prime or "super prime" cards. Most of the major banks have their worst rate for a prime or super prime card around that 29%-29.99% range (I think they don't want to cross the 30% barrier on those), with usually something in the 19-21% range for the best profiles (probably not too many getting that rate) and maybe 25-26% for those that aren't quite as strong but still not weak enough to be a borderline approval.

That being said, I tried to do a quick google search to see if there's any data on new card rates (not rates in total) and it seems to vary by source so maybe I'm wrong lol. Forbes survey of 250 cards was 27.89% and Investopedia's survey of 300 was 24.37%. From the looks of Investopedia's survey they may not have looked at some of the sub prime variants of prime cards (ie no sub C1 QS and S1 that are over 30%). I'm now wondering if maybe what's going on is that when there's 3 possible rates for a given card, maybe it's a higher percentage of people getting the highest rate than previously.

Re: FNBO APR Hike

SouthJamaica — Wed, 17 Apr 2024 04:57:25 GMT

@chuckwood wrote:
I have had my FNBO account for several years. I don't use it alot but I have it in rotation and always pay statement balances. I recieved a letter today from FNBO stating that they are raising my APR in June from 20.24 to 29.24. The letter just states they are raising it to what I might recieve on a similar card today. I don't carry balances so it technically will not affect me but the thought of that APR is scary. I am considering closing the account if they don't rethink that hike. Am I overreacting? I have not added or changed anything credit wise in almost 2 years.

Yes you're overreacting. Especially since you don't carry balances.

Re: FNBO APR Hike

cws-21 — Wed, 17 Apr 2024 10:37:11 GMT

@chuckwood wrote:
I have had my FNBO account for several years. I don't use it alot but I have it in rotation and always pay statement balances. I recieved a letter today from FNBO stating that they are raising my APR in June from 20.24 to 29.24. The letter just states they are raising it to what I might recieve on a similar card today. I don't carry balances so it technically will not affect me but the thought of that APR is scary. I am considering closing the account if they don't rethink that hike. Am I overreacting? I have not added or changed anything credit wise in almost 2 years.

I received a similar letter from FNBO for my grandfathered Ducks Unlimited. Its APR is going to 24.24%. Honestly, I couldn't care less given I always pay my statement balances in full and the card still earns 5% cash back for gas and sporting goods stores.

Re: FNBO APR Hike

odd_dog — Wed, 17 Apr 2024 10:38:42 GMT

Sadly or gratefully I could not even tell you what my APR's are on ANY of my cards....too worried about the perks and the reward amounts.....paying in full each month has it's privileges.....

Re: FNBO APR Hike

gdale6 — Wed, 17 Apr 2024 17:01:43 GMT

Yup did same to me, i terminated my cards with them over it. Already moving to replace the lost CL.

https://ficoforums.myfico.com/t5/Credit-Cards/FNBO-Bucks-Back-Visa-Card-Holders-Beware/td-p/6753813

Re: FNBO APR Hike

chuckwood — Wed, 17 Apr 2024 18:52:54 GMT

Thanks everyone for your input. Just for giggles I looked at my other cards and the highest apr on all my other cards is 24.74 so the 29.24 is alittle excessive. So then looked at there lowest they offer on new accounts and that is 21.24. So I don't know where they came up with a 9 perent increase. So I called with a level head and asked why and if there was anything that caused the increase. They told me sorry that they are working on adjusting all accounts and they could not change the new rate. So I figured if they are going to play that game I don't want to be apart of it and closed the account.

Re: FNBO APR Hike

SouthJamaica — Wed, 17 Apr 2024 18:59:37 GMT

@chuckwood wrote:
Thanks everyone for your input. Just for giggles I looked at my other cards and the highest apr on all my other cards is 24.74 so the 29.24 is alittle excessive. So then looked at there lowest they offer on new accounts and that is 21.24. So I don't know where they came up with a 9 perent increase. So I called with a level head and asked why and if there was anything that caused the increase. They told me sorry that they are working on adjusting all accounts and they could not change the new rate. So I figured if they are going to play that game I don't want to be apart of it and closed the account.

Thanks for letting us know how it all played out.

This is why it's good to diversify.

Re: FNBO APR Hike

CreditCuriosity — Wed, 17 Apr 2024 19:01:30 GMT

Sign of the times sadly. Hopefully inflation goes down in the next several years and we all can have some breathing room. CC issuers are just passing it on to us whether a big bank or a cu imho. Prime+rate. Some do it monthly or quarterly and others do bigger jumps all at once.

Re: FNBO APR Hike

chuckwood — Wed, 17 Apr 2024 19:22:16 GMT

@SouthJamaica wrote:
@chuckwood wrote:
Thanks everyone for your input. Just for giggles I looked at my other cards and the highest apr on all my other cards is 24.74 so the 29.24 is alittle excessive. So then looked at there lowest they offer on new accounts and that is 21.24. So I don't know where they came up with a 9 perent increase. So I called with a level head and asked why and if there was anything that caused the increase. They told me sorry that they are working on adjusting all accounts and they could not change the new rate. So I figured if they are going to play that game I don't want to be apart of it and closed the account.
Thanks for letting us know how it all played out.

This is why it's good to diversify.

Yes I am a big believer in that. I am glad I am blessed enough with other cards and issuers to not to be too heart broken that I cut ties.

Re: FNBO APR Hike

gdale6 — Thu, 18 Apr 2024 16:30:44 GMT

@CreditCuriosity wrote:
Sign of the times sadly. Hopefully inflation goes down in the next several years and we all can have some breathing room. CC issuers are just passing it on to us whether a big bank or a cu imho. Prime+rate. Some do it monthly or quarterly and others do bigger jumps all at once.

Yup, When I talked with them I told them if this is how you reward responsible cardholders then I have no use for you. Hell, got a Commerce Bank AOPA card not too long ago with a 15% APR so there is no excuse forn FNBO to be doing this other than to anger responsible individuals. Over the last few years they have been getting rid of the things that made them good, no more image cards, no BTs offered since covid other than full boat interest rate of the account, a new site that is a piece of junk over their older one and now this...

Re: FNBO APR Hike

CYBERSAM — Thu, 18 Apr 2024 16:41:18 GMT

@gdale6 wrote:
@CreditCuriosity wrote:
Sign of the times sadly. Hopefully inflation goes down in the next several years and we all can have some breathing room. CC issuers are just passing it on to us whether a big bank or a cu imho. Prime+rate. Some do it monthly or quarterly and others do bigger jumps all at once.
Yup, When I talked with them I told them if this is how you reward responsible cardholders then I have no use for you. Hell, got a Commerce Bank AOPA card not too long ago with a 15% APR so there is no excuse forn FNBO to be doing this other than to anger responsible individuals. Over the last few years they have been getting rid of the things that made them good, no more image cards, no BTs offered since covid other than full boat interest rate of the account, a new site that is a piece of junk over their older one and now this...

Glad I'm not the only one who see it the same way! No more BT offers for a long time and they went away from everything that made them good.

Re: FNBO APR Hike

ptatohed — Thu, 18 Apr 2024 17:43:35 GMT

I've never, ever taken anything a bank or issuer does "to me" as personal. In fact, I have very thick skin.... if I like a card, I'm keeping it no matter what an issuer may do. Raise my rate? Go for it. Poor customer service? I can live with that. Unintuitive website? Okay.

Heck, if AOD or citi came to my house, rang my bell, and kicked me in the nards when I opened the door, I'd still keep their cards.

Re: FNBO APR Hike

Anonymous — Thu, 18 Apr 2024 18:56:38 GMT

@ptatohed wrote:

Heck, if AOD or citi came to my house, rang my bell, and kicked me in the nards when I opened the door, I'd still keep their cards.

Yes, if they rang the bell. If they broke down the door, well. ... OK I guess you would still keep them, perhaps with a weakly worded letter to the CEO suggesting, "if it's not too much work (and if it is, forget I mentioned it)" some additional employee anger management training.

Re: FNBO APR Hike

chuckwood — Thu, 18 Apr 2024 20:11:53 GMT

@ptatohed wrote:
I've never, ever taken anything a bank or issuer does "to me" as personal. In fact, I have very thick skin.... if I like a card, I'm keeping it no matter what an issuer may do. Raise my rate? Go for it. Poor customer service? I can live with that. Unintuitive website? Okay.
Heck, if AOD or citi came to my house, rang my bell, and kicked me in the nards when I opened the door, I'd still keep their cards.

If they offer something you can't get anywhere else it might take alittle more to move on but when 10 other banks offer that same thing without the headace or fear that they are going to pull something shady its time to move on. I didn't take it personal as I know I am just a number to them but I am not going to support a bank that rewards what most any other bank would call a good customer with bad practices for no good reason but greed.

Re: FNBO APR Hike

cws-21 — Thu, 18 Apr 2024 20:44:28 GMT

To be honest, I don't even know what my APRs are on nine of my 10 active cards. For people who pay in full, I am really confused as to why it matters at all. I am only interested in the cash back percentage or points and the benefits.

Re: FNBO APR Hike

ptatohed — Thu, 18 Apr 2024 21:37:43 GMT

@cws-21 wrote:
To be honest, I don't even know what my APRs are on nine of my 10 active cards. For people who pay in full, I am really confused as to why it matters at all. I am only interested in the cash back percentage or points and the benefits.

I couldn't agree with you more @cws-21 . Well, ok, I could.... If you had said "I don't even know what my APRs are....why it matters at all.... and ptatohed is very handsome", I would have agreed with you more. j/k. But seriously, I am in the same boat. I just happen to know my AOD is 7.49% just because, well, it's rare so I know it. I remember noting my new IHG (not in my sig yet) is in the low 20%s (forgot the exact # already) just because I thought it was kind of nifty that I was approved for the lowest. But that's all I can tell you. I don't know any other APRs.

I'll go even further and admit I really don't know most of my CLs. If the CL more than covers any spend I think I'll ever need for that card, that's good enough for me. I know I am in the way minority on that one around here.

Re: FNBO APR Hike

Anonymous — Thu, 18 Apr 2024 22:04:02 GMT

@cws-21 wrote:
To be honest, I don't even know what my APRs are on nine of my 10 active cards. For people who pay in full, I am really confused as to why it matters at all. I am only interested in the cash back percentage or points and the benefits.

The usual reason given is "Life happens" which, while true for the living section of MyFico, isn't necessarily convincing, as small differences in APR aren't usually going to make-or-break in extremely expensive emergencies, and in smaller ones, the $ difference isn't going to be huge.

But just as some go after CLIs endlessly, some want the lowest APRs, just in case..

And as your friendly reality check: our behavior is strange to the vast majority anyway. "You have a credit card, you use it, and you pay some back. End of. And people here make SPREADSHEETS????? Get a life!"