I just finished reading a MSN article on credit. It said the credit card company only has to give you 15 days notice before raising your APR, so you need to watch all those little notices you get with your bill. Assume you get that little notice. What can you do, if anything? I know MBNA told me to either agree with the increase or quit using my card. I quit using it and my APR stayed the same. But, the other banks did not give me a choice. They just raised the APR on the card, including the current balance. I know you can move your balance elsewhere, but that only works if you have somewhere to move it.
Theses caveats have been around for a while, but since the economy slowed, CC lenders are pulling out all the stops.
If you had LATE payments or over-limit...they can raise the interest with-out any other notice...BUT the general so-called "ACROSS THE BOARD" increase, you have to be notified...
ok. But if they notify you of the increase, is there anything you can do other than to move your balance elsewhere?
If you are NOTIFIED of an increase...you have 2 choices...let them close the account and you pay at the old rate...or accept the new rate and BT it gone A.S.A.P. I decided to let them close it, and keep the old rate...but I took a "HIT" on my score...because you no longer have the credit limit...but you have the outstanding balance figured in the F.I.C.O. score...(IT'S PAID OFF NOW AND GONE)
