I got an MBNA card a year ago and after the initial intro 3.9% rate it went to 13.99% as advertised. I have never, ever missed a payment or even been late on this card, or with any other of my creditors. However, they just inexplicably raised my interest rate to 23% !!! When I called to inquire they said they would look into it, but it usually is something they see on your credit report. I told them that I have excellent credit, I get my credit report every couple of months and there's not a late payment anywhere. And if that were the case, why did they raise my credit limit a couple of months ago without my even asking!! And when I told my mother about this, she said they raised her rate three months ago to 23% also, and again, she has spotless credit! Is this a SCAM!!?? Has anyone else had similar problems? And where would I file a complaint? This is ridiculous, I can't afford to pay $6000 at 23% !!!
Do a balance transfer to Discover card or Am Express Blue if you don't have either of these 2 cards. Amex also will offer the Low interest for 12 months, Discover for 6.
Hi Sue, To better able you to understand this horribly reality I will re-post a part of a message I posted elsewhere about a 'typical' conversation one would have with a CSR of a creditor if they ever decided to be honest. "Say I was a customer of your bank of long-standing, never paid late, never went overlimit, never so much as made one complaint. One may surmise we had a very good working/business arrangement. Imagine to my shock and horror I receive my statement and am informed due to "something" in my credit report we are jacking up your rate to penalty rates. ME: Why sir/madam why? I've had a perfect working arrangement with you all these years CSR: True sir, but your credit history with us is totally irrelevant; we banks paid off congress bigtime so that they would institute regulations wherein any deliquincies on any of your other accounts would be deemed sufficient excuse for us to raise your rates to the moon. In fact just increasing your overall indebtness is sufficient cause. Perhaps you've noticed that we're checking your credit report on almost a monthly basis looking for just such, well now you know. ME: But I don't have delinquent accounts and my actual indebteness has been dropping for the past year. CSR: Be that as it may, we found something negative on your credit report, perhaps somebody made a mistake, well thats no concern of ours. Take it up with the CRA's. ME: Ok, I just shelled out $24 (8$ a piece for all three companies) and their is absolutely, positively no negative information whatsoever. CSR: Well then, the decision may have been made because your credit score dropped. * (Note: credit scores for reasons nobody, including the very individuals who designed and programmed them, has been able to discern can change, even drastically, day-to-day which leads to a question as to their actual relevance, never mind realibility and validity) ME: Credit score, what credit score I don't see any such thing on my credit reports. CSR: Well the facts are sir, only WE can see that, the CRA's do not make it a policy of divulging their credit scores, perhaps you can take it up with them. * (In the case of such criminal organisations such as First USA and Fleet and now People's no valid reason whatsoever is needed). My advice to you would be to keep at them and "force them" to reveal the 'real reason', though don't be too surprised if they quote reason codes that have come virtually 'out of a hat' and have no basis in reality, i.e. they are outright lying and are jacking up the rates of many individuals because A. A cash-grab B. They believe you do not have the capability to either pay off and close the account or to transfer it elsewhere, or obtain a new account and transfer it there and can hold you 'hostage' to higher APR's Let me give it to you straight, if you are somehow able to 'prove them wrong', particulary if you close the account and transfer it elsewhere, you will be shocked as to how quickly you will receive non-stop solicitations by mail and phone to return at very low teaser rates In the current credit landscape you either deal from strength or you're screwed.
Sue, Do you take cash advances on your MBNA account? Many banks will raise the interest rate if they see cash advance transactions.
All I take are cash advances and balance transfers. I feel this is the only way to use credit. I have a MBNA account, they recently raise the limit to $13,900 and lowered the rate to 9.9%. The only way to deal with MBNA or any bank is to have other accounts on the ready to pay them off when they raise the rates. Deal from strength. They will all raise the rates. This latest round of interest increases should be coming to an end. Once the new administration takes over, the economy will go through a slow cycle for at least a year or two. Profit from the experience. http://www.creditsense.com
Welcome to Risk-Based Pricing. While the effects are large and obvious, the reasons can be rather subtle. You do *not* have to have a late payement or default on your credit report to be viewed as high-risk. You mention that you have a $6K balance on this card. Do you have significant balances on other cards, as well? That could possibly be part of the issue - balance-to-limit ratio. Maybe just on this one card, or maybe on multiple cards. If you have obtained other cards since the MBNA, then your total available credit may appear excessive ("enough rope to hang yourself.") I expect that even slight changes in the FICO scoring mechanism itself could result in a consumer's score coming out lower than previously. Since your credit history is generally good, I suggest looking for a better deal, to transfer the balance to an intro rate somewhere else. Also, Discover and First USA like to periodically send convenience/balance-transfer checks with temporary low rates. Good Luck. -- CardReport.Com - Credit Tools, News, And Reference http://www.cardreport.com/ Everything You Need To Know About Credit And Debt --
MBNA used to be a good company but I have heard that they have become a problem. While they have not incerased my interest rate, they have charged me late fees, even though checks were mailed more than 10 days in advance. Several people have told me that they have had the same problem ( some mailed their payment the same day they got the bill). They are probably holding payments just to charge the fees. I will close mine and switch to another card. There are so many out there today, you don't need to stay. Call another company and find out about a balance transfer. Switch your $6000 to another card, they will be glad to have you.
They did the same thing to me. 10K limit, never very close to the limit..and within 2 years it's at 20+ percent. First thing I did is write them....told them to check my credit and please tell me why such a crappy interest rate, and explained I have another card (First Union) with a rate 10 points below them. I clearly said their response determines my longevity as a customer. I get a letter a few weeks later raising my limit to 14K, and asking me to call them. They apologized, gave me their Platinum Plus card, good rates, etc...except for the damned phone commercials they want to keep playing you, it was a good experience. They wouldn't tell me, but I sense there is something in their software system somewhere that bumps rates on non-usage...but based on their treatment, I'll remain a customer...
So let me get this straight. I was given a Fleet card with a $4,000 balance because they knew no one else would give me that amount of credit just so they could jack up my rates and i couldn't do anything about it? How many people has this happend to. I get new terms in the mail everyday. My question is this, how can they just send me new terms, ones that I would never agree too. If they breach the contract, why can't I.
Yes MBNA is risk based pricing on all their accounts.Here is another reason for them to up your rates.Are you only paying min-due only on all of your accounts?This is a red flag as far with MBNA.This shows that a person is not trying to get out of debt therefore they view you very risky.I have been with MBNA for over 5 years,and i am happy with them.Havn't had any rate increases with my account.Currently i am enjoying a 9.99 A.P.R. on all transactions including cash advances.Being responsible is the important key to keep these low rates.
