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Rise in Consumer Interest Rates?

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8 replies

by cupcake

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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?

8 replies

by dhcdbd

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.

by john.a.wills

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.

by charliespencer

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.

by tony hopkinson

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 ??

by tony hopkinson

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.

by jamesrl

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

by delbertpgh

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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