Hello, I have MBNA cc and have $5000 debt on it. I am paying monthly more than the minimum required. However, I see that the APR is increasing every month...15.33% to 15.82 to 16.23 to 16.77 to 17.61 to 17.99 etc... I dont understand the APR and the changing patterns of it. I just want to understand if this increasing APR is normal to every credit card or not? If not, what could be reasons for the APR be increasing regularly? What are my options for reducing the periodic finance charges and get some savings? Thanks
In some of the card agreements, they say if you miss payments with other creditors (or them), or if ya have high balances with other creditors - they gots the right to increase your interest rate. It don't make it right - but if ya continue to use the card, you're agreeing Cash advances hurt...boy do they hurt, and with some cards, ya pay, and that comes out in da form of higher rates. In your statments, or in da mail in a separate letter - did you get a notice of account changes? If that's not da case - call them and see what they say. There's a chance ya can get them to lower it...specially if youze been a good customer. Good luck!
Kamur, There are a number of possibilities for the APR increase. Has the increase taken place slowly, over time, or has it been one big rate increase? If the increase was slow and over time, it may be tied to the increasing prime rate. Many rates on credit cards are variable and as the prime rate increases, so does your credit card's interest rate. If your rate is increasing as a result of something on your credit report (or for some other reason), you should have received a notice in your monthly statement explaining the reason for the rate increase. I would suggest that you call MBNA and ask them to lower your rate; it certainly can't hurt! Another option is to send a letter to them from Planetfeedback. I have done this in the past and been successful in getting a lower interest rate. Best of luck and let everyone know what you find out! -Matt
