1) On an MBNA credit card with a good rate (knock wood, spit on the ground!) they routinely up the rate without warning, I call, they apologize and lower the rate "for next month, but unfortunately you have to pay the current - much higher - bill" and so it goes that 3-4 times per year I am paying the higher rate at a nice profit for them. 2) February payment was due February 5, 2004. March payment - get this - was due March 1. My payments had ALWAYS been due on or about the 5th and suddenly, in a period already "short" (as February has only 29 days) without warning my bill is suddenly due roughly 25 days after the last payment - is that even a legal billing cycle? Fortunately, I made the payment on time but I wonder if they weren't specifically trying to make it late so that "higher rate" would have merit? 3) I know this sounds paranoid but at the same period of time Checkfree, a system of online payment I have used and loved for over a year, does for the first time ever - receive my e-bill late and thus informs me - too late - of my April payment also being due on the 1st (remember for ten+ years my payment has been due about the 3-5th). Fortunately, I had already made the payment on time but now, ten days later, Checkfree has admitted in an e-mail reply that they have no idea why the e-bill was late and are having a difficult time receiving an answer from MBNA. I am beginning to feel like I'm in a cat and mouse game with MBNA!! I know Clark Howard (of syndicated financial radio fame) has warned that creditors are increasingly desperate for fees having been burned by increased bankruptcies but I guarantee that upping my rate from 11% to 24% is not the answer! Has anyone else experienced these games lately?
Just keep in mind that if you bill is due on the 1st and you pay on the 2nd, your rate will go up. I have a friend that works at MBNA, and there are a ton of ways that they go about getting more money outta you. Here is a couple tricks- you know the useless advertising that isn't on the bill?? Well, that is where they tell you about the changes, on one of the envelope stuffers Always pay your bill before the due date in case there is any discrepencies... ie.. if it is due on the 25th, pay on the 24th... gives you 2 days MAX lag for issues. I can talk to him and get more feedback if you like...
This is a tactic used by CC companies to "punish" good customers. Chances are, you have always been ontime with your monthly payments and you always carry a low ballance. Maybe even paid teh complete balance a time or two. Watch you statements like a hawk! They try to sneak that higher APR in on ya hoping you won't notice. Personally, I'd close the card. However, that's just me. I hate CC's and will never use another one again in my life. This is a common practice by CC companies.
With the exception of the low balance (its apx $8k business use on it this year) you are right. I feel like they are somehow *annoyed* by my good payment history. Hey, I'm doing my part in the bad economy and only making minimum payments (bad, I know) -- can't they be satisfied with that for a while?? This just galvanizes me to get this debt OFF us - if I have to work six or seven jobs to get the job done. Thanks for your replies - I really started feeling paranoid for a moment. But if it's TRUE then it's not paranoia right
SLOYAROLE, all I can say is if you aren't using credit cards at all, you're not using your money wisely. I'm not saying go buy stuff you can't pay for. But I routinely buy everyday things (food, gas, stamps, clothes) and don't pay for them for up to 6 weeks. I have at least two cards I rotate, and I use the one with the billing date furtherest in the future. I always pay the bill in full, so I pay no interest. But my money was sitting in my account GAINING INTEREST for sometimes as long as two months if I plan it right. I also don't care if they raise my APR--I'm not going to pay it anyway. The exception is balance transfers, where if I have a low enough rate (right now most of it is 3.9% for life of transfer) I'll never pay more than the minimum. Why? Because I can invest my money and make much more than 3.9%. People need to learn it's not about spending, it's about building wealth and using other people's money to do it.
They do seem to be playing games a little with the dates trying to trick people. They change by about 5 days; making it due one month on the first and another month on the fifth. I watch it carefully and have never been late with them, but I'm sure other people don't pay as much attn to their bills and get caught by them.
