CC and variable rate?
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|Thu, 03-12-2009 - 1:11pm|
This past year I decided to pay off all of my credit card debt which was standing at 16k, and I am down to two credit cards, one is 3k and the other is 9k. I hope to be done paying off the larger amount cc first this summer. But what I noticed with that card is that my interest changed quite a bit. It went from 12% to 17% without any written explanation. I called the citi card, and they said that because my rate is variable they can change it often. They were able to lower it back only little bit, to 14%. That was last month.
This month's statement I noticed my interested went up by little bit again. I called them and they said that variable rate changes, and yes that can change on a monthly basis. I told them that I pay on time, and have never been late, and don't understand why my rate keeps on changing. She said because of the economy. Ugh!
I told her this was very frustrating as I didn't receive anything in the mail about it. She said they sent a little piece of paper together with my statement. And that they can write something up for me and mail me those changes. Wow!
Maybe they seen that I've sent huge chunks as of late trying to pay that cc off and are trying to get more money out of me? Could someone explain how the rate changes? And who decides that? I thought the federal government lowered the prime rate, but it looks like that has nothing to do with cc. Am I wrong?
Any help I would appreciate it. Thank you!
Edited 3/12/2009 1:15 pm ET by after_leptirica