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Rise in Consumer Interest Rates?

By cupcake ·
Happy Wednesday.

I have been the recipient of three notices (in as many weeks) of an increase in interest rates on my credit cards. These are pretty substantial interest increases. With no adverse reporting to my credit (and credit reports), I am seeing increases from 8.9% and 9.9% to 17.9% and 24.9%!

Has anyone else experienced this? The first time it happened, after investigating, I paid off the balance and closed the account. The other two came with days of each other and I am at the point where I cannot close all my credit cards.

Is this an unexpected consequence of the financial markets? Anyone else experienced anything like this?

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Unexpected?

by santeewelding In reply to Rise in Consumer Interest ...

Greetings, my dear.

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Rates

by DHCDBD In reply to Rise in Consumer Interest ...

I forget which, either Obama is pushing for interest rates caps on cards, loans, money marts, etc.; legislation has been introduced for the same; else passed but not in effect yet. Whichever it it, it would not affect current credit. I expected this.

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I have experienced the same

by john.a.wills In reply to Rise in Consumer Interest ...

but it doesn't matter because I pay my acounts off in full every month. Except for the zero-interest special offers, that is, and I have had fewer ads for those lately.

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Zero interest offers

by CharlieSpencer In reply to I have experienced the sa ...

Apparently my credit is still good enough for me to continue receiving "0% for a year" offers. After 11 months I move the balance again and cancel the old card. I've been doing this for years with no apparent ill effects.

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They lost all our money

by Tony Hopkinson In reply to Rise in Consumer Interest ...

suffered a massive loss in company value, are spending a fortune of 'Not me guv' PR and explanations.

Where else were they going to recoup their losses....

Unexpected ??

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Do yourself a favour

by Tony Hopkinson In reply to They lost all our money

work on what you need a credit card for. At best work your finances so any debt is as short as possible.

I cut mine in half, shredded the pieces and then set them on fire about two years ago, never looked back since. You couldn't pay me to have one.

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No....

by JamesRL In reply to Rise in Consumer Interest ...

I haven't seen a notice about my credit cards, but my mortgage (variable rate) and my line of credit have both gone DOWN substantially since the base bank rate has gone down. The bank rates are based on the prime rate, but they have not gone down as fast - sometimes when the prime goes down a half percent, the bank rate goes down a quarter.

But our banks in Canada didn't suffer the massive losses that US banks did.

James

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It's one part of banking that's still profitable. That's what I hear.

by DelbertPGH In reply to Rise in Consumer Interest ...

I heard something on NPR, I think it was, that said banks were generally looking to raise interest rates on credit cards, because it was the one of the few places they could still make money. It breaks down to this: they need income, and most of their business is paralyzed or contracting.

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