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"Due to extraordinary changes in the economic environment", Cap 1 increased my fixed interest rate from 13.9% (mediocre to begin with) to a variable rate 14.65% + Prime rate! No lates on my credit report in 5 yrs, pay off card monthly, EQ=749 (always my lowest agency). If I hadn't had this card for 20yrs, I would cancel but it's my oldest account.
I apparently am not the only one hit by this.
http://www.consumeraffairs.com/credit_cards/capital_one.htm
Be aware if you are looking to get a Cap 1 card...
Happening to LOTS of us. But if you've had their card for 20 yrs. you must have seen this before. I've had mine for 7 and 8 yrs and went through it when they did large scale rate jacks 2 or 3 years ago. My rates went up to 19 and 21 % then....I called 6 months later and they were reduced to 12 and 13%...then further to 9 and 11%.
This week they went up to 17.9%
I'm sock drawering mine for a while now as I never pay AF on them. Hopefully Cap One will be open to renegotiating rates again in a few months.
"Due to extraordinary changes in the economic environment"... So people are having a hard time paying bills, and their big idea is to make it harder for people to pay them back?! They may as well have started the letters with, "Times are tough, and will only get tougher thanks to Capital One!"
My Husband and I each have Capital One and received the same notice. I recently paid mine off and once I got that letter, I decided not to use it anymore.
I got mine yesterday. They jacked me up to 23% variable. I've drawered the card and I'll be calling Capital One Direct Banking and telling them that in response to their letter, and due to the economy, I will be withdrawing my Money Market (which has dwindled in interest and is now useless) and placing it in my local credit union. Then I will write a letter citing every reason they gave me for my ratejack as the excuse for my closing the account. I might even use quotes and a footnote giving them credit for the words.
It probably won't accomplish anything, but I'll feel 100% better.
@Anonymous wrote:"Due to extraordinary changes in the economic environment"... So people are having a hard time paying bills, and their big idea is to make it harder for people to pay them back?! They may as well have started the letters with, "Times are tough, and will only get tougher thanks to Capital One!"
I do not understand the hate. They are giving most users month to become aware of the changes, and pay down their balances and to pursue other cheaper lines of credit to transfer to if they have to.
I am sorry, yes their changes are somewhat draconian, but what actaully do you expect?
It does not cost you anything to keep the account open. And who knows when the markets will cycle back anyway.
On my March 09 statement I noticed that they LOWERED my interest rate from 15.9% to 11.9%.
Who knows why these banks do the things that they do
Here is what Cap One wrote on their ratejack brochure, and I need help with interpretation:
Purchase and Balance Transfer (APR):
*Effective with your first billing period that begins after April 17, 2009, your existing Purchase rate will be treated as a promotional purchase rate that won't expire until 2010.
There are times when I'm almost grasping what they're saying, but then I'm lost again. Can anyone help to translate into terms a lay person can understand? (And stop laughing at me -- I'm aware that I'm a dolt!!!)
I think it means you are being notified now that your rate goes up in January 2010. Your new rate will be 19.65 + prime rate (which if calculated now would be 22.9%). Your rate will fluctuate based on month to month changes of the prime rate. I ASSUME the part about the promotional rate taking effect 4/17/2009 means that if you are late with your payment after that date then your interest will go to the new default rate (you know, the insanely high one). At least , that's how I'd interpret what they said...