[BMWM3DREAM]

Does anyone have any information regarding if Bank Of America is rasing their rates?

[ECLIPZD95]

Got the same letter from "Shitty Bank"...Never had a late payment and I had my card since freaking 1993!!! This was actually my very first credit card and pretty much kept it open for sentimental reasons and used it only for online purchases every now and then (i.e. mods for my E90 or one of my sport bikes).

Hey Memphis - Why would closing my account be a negative against my credit score? I thought that if the account was in good standing and the consumer requested the closure, it would be a positive?

[magmd]

Yeah, I got the letter also. I've been with them for YEARS!!! I used to travel alot, and had the AAdvantage card to accumulate miles. My new rate is going to be 21.99%....total crap.

1. Miles programs went to shit about 18 months ago.
2. Now cc is going to shit.

Even with this economic crunch going on, I still had an avail credit of $50K+ on that card. But with all this BS--I have no need for that type of open credit line anymore. I'm going to close that thing. With regards to credit score, yeah, I will probably loose some points--but I already own a home, have 2 cars...no big purchases anytime soon. Plus, I have another card which I use now for just about everything and pay it off at the end of the month. I get mortgage points on that one. No need to keep this one, since there is a membership fee to keep up the Aavantage crap going. Not worth it to me anymore.

Citibank......Peace out.

[magmd]

Originally Posted by ECLIPZD95

Hey Memphis - Why would closing my account be a negative against my credit score? I thought that if the account was in good standing and the consumer requested the closure, it would be a positive?

Part of your score takes into account a ratio of your current balance (debt) to your available credit (open cards in good standing).

if you close the card, you will delete some of the available credit that was working in your favor. Meaning, your debt now shares a larger portion of that ratio than it did prior to you closing the account.

Of course, there are tons of other factors involved...but just one of the ways you can loose a couple of points. I do not think its a huge deal if your spending habits are otherwise good. You will get those points back in time.

[Heinzftw]

Been with US BANK for close to 3 years now. Their APR is damn near that range also.

[lucas.kent]

I went through the same thing recently. Over the course of the past couple years I have made the switch from traditional banks over to my credit union. It's so much better and they're not trying to jerk you around every couple months.

[RRGOO7]

I got the same letter about two weeks ago. Citibank also. I owe about 1500 and called and told them id like to close my account. The indian women on the phone said the letter was sent out to all customer but not "applied" to certain accounts. She told me my APR is staying at 9% due to my excellent payment history. I said thanks ill keep the card and hung up.

Kind of puzzled me...

[BMW F22]

They're actually telling the truth. I've received a few letters from banks saying the same thing. One bank actually tried to hold it out as long as possible before increasing it but in the end they must follow the bandwagon.

[ArmyBimmerDude]

Originally Posted by lkw15

I went through the same thing recently. Over the course of the past couple years I have made the switch from traditional banks over to my credit union. It's so much better and they're not trying to jerk you around every couple months.

I've heard other people say the same thing. Credit unions are much easier to deal with and won't treat you like crap to cover their ass.

[ArmyBimmerDude]

Originally Posted by BMW E90

They're actually telling the truth. I've received a few letters from banks saying the same thing. One bank actually tried to hold it out as long as possible before increasing it but in the end they must follow the bandwagon.

Well if everyone closes their accounts due to these rate hikes, how can these banks survive? The government will only bail them out so many times.

[BMW F22]

Originally Posted by ArmyBimmerDude

Well if everyone closes their accounts due to these rate hikes, how can these banks survive? The government will only bail them out so many times.

That's what I don't understand either. So it's like "you want to increase the rates to make it harder for people to pay if off??"

Or maybe they do that so people can spend the money they actually have instead, who knows...

[Feyd]

Originally Posted by BMW E90

That's what I don't understand either. So it's like "you want to increase the rates to make it harder for people to pay if off??"

What you aren't understanding is that we aren't talking about actual cash, we're talking about balance sheets. The CC companies (and their reporting) is based on what they "think" will be receiving in as revenue over the course of the coming months.

Therefore if they raise the rates, their balance sheets look better and thus their company looks stronger. They aren't worried about if people will be able to pay or not. Sure some of them will default, but the majority will just take it up the ass because they have no other choice.

[UncleWede]

Yeah, but they're giving you 2% on your 18 month CD

[e46e92love]

Originally Posted by ArmyBimmerDude

My wife just received a letter in the mail stating that they're adjusting their pricing and raising the variable APR for purchases to 23.99%. Her credit score is darn near 800 and she's never been late with a payment in 4 years of being with them. Her balance is less than $1k and after calling them, she was told that they're doing this to everyone because of the economy blah blah.

Has anyone else received a letter like this? We're not worried about it, she'll just pay off the balance and close the account, but for those people living on their credit cards, it could be a nightmare.

Yes, they did this to me as well, and again I never carry a balance and have a great credit score but charge everything in my life because of the AAdvantage miles I get and need for my frequent trips to India (first class makes all the difference boys). I realized since I pay off my bill every month, this doesn't really affect me, and since citi handles the AAdvantage cards, I have no choice.

I think its ironic that the tax payers bailed out Citi, their executives wallets aren't exactly hurting, and yet the same taxpayers that bailed them out are now getting f**ked by them via high interest rates and their unwillingness to lend (either personal or business). Total horsh*t if you ask me, but no one did so I will STFU.

Cheers,
e46e92

[ZJP]

Citibank raised my APR from 9.9% to 25.9% and lowered my CL from $2500 to $1360 during the whole credit crunch BS.

Last time I called them for a CL increase, they told me to go 6 months with paying on time (which I have been) and to try back.

Complete bullshit if you ask me.

[Bimmer335i]

Originally Posted by BMW E90

That's what I don't understand either. So it's like "you want to increase the rates to make it harder for people to pay if off??"

Or maybe they do that so people can spend the money they actually have instead, who knows...

it's a vicious cycle...and throughout, the american public gets it in the azz...

[335e92tx]

Originally Posted by pdjafari

So much for Obama's promises of helping the 'american people'....

Ah, the help came in the form of legislation passed (and remember who from the GOP was for it).. that limited the ability to pass increases without advance notice.. and before it went into effect, the banks just raised them anyway. Thats the free market for you.

Originally Posted by ideliver

You can thank our Democratic congress for "helping" us by passing the consumer credit protection legislation...

.

So you think they would not have increased if there had been no legislation??? B

Bzzztttt

[Spec 1]

DO NOT close those accounts, as mentioned before, your credit scores will most likely decrease by doing so. If you have a high balance with an increasing APR, open an account with a credit union or your insurance company (I use State Farm Bank now) and transfer the balance when you do. You'll get the lower APR on that balance and keep the old credit line open to help your score.

[Digital.James]

yeah I got the same thing from Citibank, with 23.99% APR. At least they kept my limit at 5k like before. Chase reduced my limit from 10k to 2500. I only used my Citibank for miles anyways, but now just use my USAA Amex and Mastercard more.

[Pink Taco]

I got this letter... I hate them. So I'm just trying to pay off what I owe and be DONE

[bassholic]

my 1.9 2.9 4.9 are fixed and discover did raise my credit recently. I have a few 0% transfers to use if i want to.

[dth656]

fuk these CC companies, i say regulate them to death. i dont know how many remember providian financial, but i remember in the late 90s they specialized in predatory lending to sub prime credit risks (supposedly their advanced mathematical modelling enabled them to hedge appropriately).

regulate them to death, and institute some consumer controls. most people are too stupid to be fiscally conservative.