APR Question. Amount + Prime changing?

[Anonymous]

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

[Anonymous]

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@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

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For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

---

For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

---

Please hold while I go on a scavenger hunt among all my agreements.

In the agreement I received with my card in April, it says prime+ an index of 21.74%. 

The most recent agreement I looked up online last night says, prime+ an index of 23.74%

I have not recieved any written notice of an APR increase, does that mean that the new index is only applying to new accounts?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

---

For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

---

Please hold while I go on a scavenger hunt among all my agreements.

In the agreement I received with my card in April, it says prime+ an index of 21.74%. 

The most recent agreement I looked up online last night says, prime+ an index of 23.74%

I have not recieved any written notice of an APR increase, does that mean that the new index is only applying to new accounts?

---

Notice of APR increases is only required under certain situations. A higher prime rate isn't one of them. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

---

For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

---

Please hold while I go on a scavenger hunt among all my agreements.

In the agreement I received with my card in April, it says prime+ an index of 21.74%. 

The most recent agreement I looked up online last night says, prime+ an index of 23.74%

I have not recieved any written notice of an APR increase, does that mean that the new index is only applying to new accounts?

---

Notice of APR increases is only required under certain situations. A higher prime rate isn't one of them. 

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From my understanding, an increase in a cards index is not the same as a prime rate increase?

I did not know that the prime rate had increased by 2% in the last month.

That explains why my Nordstrom Approval the other day had such a high APR then, I thought it was just a fluke that it was 24.15% but with the 2% prime rate increase it makes sense.  

Does that mean all of the APR's on my cards will go up by 2% by the next statement? That is a steep hike. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

---

For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

---

Please hold while I go on a scavenger hunt among all my agreements.

In the agreement I received with my card in April, it says prime+ an index of 21.74%. 

The most recent agreement I looked up online last night says, prime+ an index of 23.74%

I have not recieved any written notice of an APR increase, does that mean that the new index is only applying to new accounts?

---

Notice of APR increases is only required under certain situations. A higher prime rate isn't one of them. 

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I googled and it seems the prime rate has only gone up by .75% since last year.

I am terribly confused at this point. If it goes up to 27.99% so be it, it is a lot less confusing to just accept it then to try and figure out why it is happening.

[Aahz]

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@Anonymous wrote:

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@Anonymous wrote:

---

@Anonymous wrote:

This may be an odd question.

I know that for the most part our base apr is locked in then the companies add the prime rate which fluctuates.

I was curious as to if banks often change the base amount for instance 22.9% + Prime. Is it likely they would change the 22.9% to something like 24.99%?

I ask because the other day when I looked up the most recent Goody's credit card agreement it noted the APR is now 27.99% while on my statement the APR has still remained at 25.99%. So it looks as though they have raised the base APR by 2%. Is it likely that next statement my APR will go up to 27.99%?

I now imagine this entire post sounds extremely dumb, but curiosity has gotten the best of me.

---

For variable rate APRs,  the rate is (usually) Prime + some fixed margin.   So we've all seen some increases due to the prime rate increasing.   If the issuer wants to change the margin, they need to give 45 days notice.    After 45 days, the new rate will apply to all existing balances, after 14 it can apply to new purchases.

So if they have increased the margin by 2% they should give notice.   Is it possible that they didn't adjust for the increased prime rate until now?  Do they somewhere list the rate as Prime + X?

---

Please hold while I go on a scavenger hunt among all my agreements.

In the agreement I received with my card in April, it says prime+ an index of 21.74%. 

The most recent agreement I looked up online last night says, prime+ an index of 23.74%

I have not recieved any written notice of an APR increase, does that mean that the new index is only applying to new accounts?

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Until you receive notice of a rate increase, this is correct.  New accounts are +23.74% while yours should remain at +21.74%.

[Anonymous]

depdep8 good posts on this thread. It is confusing when a variable rate card(s) automatically increases or decreases Aprs in accordance with the terms and conditions and nothing is said (happens to me a lot). Recently, (November 2017) Chase noticed me that they would be increasing the Apr on one of my old credit cards effective to my billing cutoff date in February 2018 (Card dates back to 2005 with a much lower Apr than the current rates showing on their website). They stated my rate would be increased to the current Chase Aprs for my credit card type. Up until now, I felt pretty special but reality or business has set in and Chase is right sizing their credit cards and throwing me in with the masses (always thought they left me alone due to my great FICO Scores - wrong answer). For what it is worth, I never pay interest so the Apr is minor in the greater scheme of things for me but ... my special feeling is gone (false thinking on my part) and the reality of business just settled in

[RobertEG]

Under the CARD Act of 2009, credit card issuers are now required to send at least 45-day written advance notice of interest rate increase or other significant credit card changes. Those other significant changes include increases in any fee or finance charge. Credit cardholders must be notified of their right to reject, or opt-out of, the changes.

[Anonymous]

Thanks all!

I will wait and see if I receive a notice. I am hoping that they only increase it for new accounts. Although, it does not matter because I do not carry a balance.