OMG-read this..."Universal Default..."
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OMG-read this..."Universal Default..."
| Wed, 12-08-2004 - 1:49pm |
http://www.cbsnews.com/stories/2004/12/07/earlyshow/contributors/raymartin/main659622.shtml
This is freaky. It's just one more great reason to work on paying off credit card debt!
r.

I think this is the same deal as when you sign up for credit. If you have a lower score, you pay a higher rate. In this case, if your score drops even after you have the card (which happens when you have a late payment) you can end up with the higher rate. They can do this because it's revolving debt. They give you a credit limit (which can go up or down) charge you an interest rate that is usually variable. It's not the same as a car loan raising the rate (which wouldn't happen) because there you have a contract for a set term at a stated rate.
I had a late payment in the summer but I disputed it. I had not used my capital one card and they charged me a fee. I didn't know about it (I get statements electronically and I knew I hadn't charged anything) but I went online to change my address and saw the charge. I paid it but I guess it never posted. Anyway, I called and the customer service rep said she would make sure it wasn't reported as late.
If any one of my cards raised my rate because of that, I would simply transfer the balance. I currently have 3 cards with high limits and my entire credit card debt (after I pay one of them off next week) would fit on any one of them. So yes, this is a great reason to pay down your debt becuase it will give you negotiating power. If they raise your rate, you take your business elsewhere.
Edited 12/8/2004 2:30 pm ET ET by firstamendment
~leanne
deciding to be happy doesn't mean that everything is perfect, but that you had decided to look beyond the imp
I just don't get it. I don't. I'm in the same boat as everyone else. I wasn't late on anythign, always on time, and yet, my rate just goes up and up and up. Do they not realize that if a person is paying a minimum, there's a friggen reason why! UGH!
MBNA is my bit. BTW, I wonder in WHAT FORM, do they need to "inform" us of a rate increase. I got none, and no, there weren't anything but ads in my envelopes, and yet, they have been raising my rates for awhile...w/o telling me.
Like this last one. I never received any notice. None. The last few months have been ads, or nothing but the bill. Where's my notice? And we ALL know complainging won't work with them, cuz their answer will just be, "we did notify you". Then it's a he said/she said.
Bleah. I am sitting her wondering how to make $7k REAL FAST.