Back in June I received a notice from Providian that effective aug 1, 03 my interest rate would be raised from 15.99 to 28.99. This of course was completely unjustified as I have never been late, overlimit, etc.... I tried planetfeedback and they refused to lower it, refused every single thing I asked as a matter of fact. So now I just received my Oct bill and they are still showing the same 15.99% apr. They haven't increased it yet to the 28.99. My closing date is the 25th so I certainly should have received it on three billings so far. So what are the chances Providian "forgot"? I have the money to pay it off (thanks to a Cap 1 offer) but would rather pay off a higher interest account (higher than the 15.99 currently, not the 28.99 it's "supposed" to be). Any advice on if I should still pay it off........Will they bill me the higher interest rate retroactively?
Don't take any chances. Close this account as soon as your balance is 0. They did not forget and this is a sign that things are about to turn south. If you **need** this card, I advise you to watch it like a hawk and keep your balance very low.
That rate totally SUCKS however if you plan on using it and paying it off in full when you do use it then the interest rate doesn't matter. If it's an old account I would keep it open and use it for small stuff and pay it in full. Then they could jack your rate to whatever and they won't get a penny for doing it. Now if you are going to carry a balance then by all means get rid of it cause that rate is outrageous!
Don't close it when the balance hits $0, just relegate it to your sock drawer. The Credit Line will help your FICO. Any percent of zero is still zero, so as long as you have no balance, who cares what the interest rate is?
I just closed my Providian visa card last week. Providian raised my APR to 28.9 for no good reason. I have perfect payment history, never over limit and my scores are all above 660. I called retention and the lady would not reduce the APR. I told her to close the account and that this is about the worst credit card company I have ever dealt with. Providian love's to screw customers !!!!!! By the way, this account was over 2 years old and Providian does not care !!!
Flyingifr That is not always good either. Compucredit, DMB, and Providian are being very aggressive these days in closing dormant accounts. If this were a prime card, I would be more comfortable sock drawering it. Heck, even BankOne closes accounts for no good reason, Ron I think had that problem.
Providian gave me an account with 0% for six billing cycles... That ended October of this year. I paid my account in full. Won't be using their card anymore.
I guess my main concern is if anybody thinks they would go after me for the retroactive interest when they realize they forgot to raise the APR on the date they notified me they would. I don't mind keeping a balance there for now at 15.99%. I have a couple of higher APR accounts I could pay off instead. By the way, I do not have a grace period on this card so paying it off monthly does me no good. I'm also concerned when I pay it off they will lower my credit limit or close the account. I have heard of them doing this by others on this board. Providian sold one of my accounts to Chase and when I paid off Chase they lowered my credit limit from 5600.00 to 600.00. I don't want Providian screwing up my ratios. They were completely unwilling to give me an inch when I contacted their Executive Offices (via PFB). I even hinted about closing the account and she jumped at the chance to be able to close it.
