Paypal credit increasing apr

[Jnbmom]

Anybody else get an email regarding a new APR?  DH just get email stating as of 1/9/19 his new APR will be 25.9% , it is currently 19.9% although we always use the special no interest financing, but geez WTH???

Stated is was because of market conditions,  I have yet to get an email?

[SBR249]

The Fed has been raising interest rates steadily for more than a year now. Increasing APRs for even the most creditworthy of borrowers is not really all that surprising since most card agreements have APRs indexed to the Fed's interest rate targets. I can't really comment on the magnitude of the increase but I have been seeing regular APR increases on many of my cards for a while now and my credit profile has not drastically changed in the interim. 

[Remedios]

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@Jnbmom wrote:

Anybody else get an email regarding a new APR?  DH just get email stating as of 1/9/19 his new APR will be 25.9% , it is currently 19.9% although we always use the special no interest financing, but geez WTH???

Stated is was because of market conditions,  I have yet to get an email?

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It's Synchrony.  They would raise it  to 299.99% if they could. 

I am surprised they waited this long. 

[CreditCuriosity]

haven't gotten this myself but if not mistaken didnt they raise it when it was also taken over from comenity?  Wasn't it lower with them than 19.99?  As other echoed they will milk it as much as they can being Sync and 25.99 - 26.99 certainly isn't unheard for from them, but this is new to paypal credit. Be interesting to see if this is across the board thing or just certain people

[coldfusion]

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@CreditCuriosity wrote:

haven't gotten this myself but if not mistaken didnt they raise it when it was also taken over from comenity?  Wasn't it lower with them than 19.99?  As other echoed they will milk it as much as they can being Sync and 25.99 - 26.99 certainly isn't unheard for from them, but this is new to paypal credit. Be interesting to see if this is across the board thing or just certain people

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They've apparently been doing it in waves.

A bunch of people were upconverted in July as part of the original transition.

I was part of another wave that was later upconverted, I forget exactly when but maybe in late September? That was discussed here.

Sounds like a 3rd wave is underway.

[Remedios]

I think Synch will push APRs as far as they can due to loss of revenue from Walmart portfolio. 

They are one small monthly fee away from being a new Credit One. 

[Anonymous]

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@SBR249 wrote:

The Fed has been raising interest rates steadily for more than a year now. Increasing APRs for even the most creditworthy of borrowers is not really all that surprising since most card agreements have APRs indexed to the Fed's interest rate targets. I can't really comment on the magnitude of the increase but I have been seeing regular APR increases on many of my cards for a while now and my credit profile has not drastically changed in the interim. 

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Right, but if this is a 6% change, that's certainly not just due to increases in the prime rate!  It's currently 5.25, which is only 2% up from the low Dec 2008 rate

[SBR249]

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@Anonymous wrote:

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@SBR249 wrote:

The Fed has been raising interest rates steadily for more than a year now. Increasing APRs for even the most creditworthy of borrowers is not really all that surprising since most card agreements have APRs indexed to the Fed's interest rate targets. I can't really comment on the magnitude of the increase but I have been seeing regular APR increases on many of my cards for a while now and my credit profile has not drastically changed in the interim. 

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Right, but if this is a 6% change, that's certainly not just due to increases in the prime rate!  It's currently 5.25, which is only 2% up from the low Dec 2008 rate

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Yes, which is why I couldn't really comment on the magnitude of the APR increase. But looking at the terms and conditions of Paypal Credit, it doesn't actually say APRs will vary based on creditworthiness or give a range. It seems that everyone who is approved gets 25.99% APR. The only thing it says is that the APR will varied based on prime rate. That leads me to believe that this is just a combination of the Prime Rate increasing as well as Synchrony taking over the portfolio and maybe deciding to jack up the APRs across the board. In any case, this probably had nothing to do with any individual borrower's profile or such.

[AverageJoesCredit]

Got this before the trsnsition via snailmail. Wouldnt be Sync if we didnt celebrate APR in July

[Anonymous]

I got an email from Paypal around August that my APR will be 25.74% for any purchases made after 10/02/2018. My old APR used to be 19.99%.