Are there rules on whether the credit card companies can raise your APR when you appear to be a higher risk in their eyes? MBNA told me that they would raise my rate from 13.99 to 23.99 unless I notified them not to. By refusing the rate increase, I had to agree never to use the card again. I took that option. If I ever use the card again, the rate will jump up. On the other hand, FirstUSA just raised my rate because they thought I was a higher risk. Are they allowed to do that? For the sake of this argument, I acknowledge that a reasonable person could have concluded I was a greater risk. At what point do your balances trigger their review where they decide to raise your rate? I got up close to my limit before the APR's were raised. I am now getting my balances down and getting my APR's reduced. I don't want to trigger a new APR increase. Should I keep my balances at least $1000 below the credit limit? $2000? The reason this is important is that I am getting a good BT rate from one card and would like to load it up from my other high rate cards unti I can get those APR's down.
Gumbo, CCC are able to continually review accounts and price in any preceived risk. The only rule is "do or be done". From my personal experience, MBNA and FirstUSA are the 2 creditors that you should never carry a signficant balance on there cards. Assuming no late pays, it is all about ratios. Try and never get any individuall account to over 75% of the credit limit and try and keep your total debt/cl ratio at under 40% and they'll probably leave you alone. Also, never run large balances without having some cards open to transfer to in the event something like this happens. Longterm, the best bet is pay 'em down and then, pay'em off.
MBNA IS MY HIGHEST LIMIT...but they refuse to give me < 11.99% on my QUANTUM...and REFUSE to increase the credit limit after 6 YEARS...I'M GOING TO DISCOVERCARD IT WHEN THE BT 1.70% EXPIRES~~~SOCK DRAWER.
I have MBNA 3 years(college card) never late..2000cl 24.89% wont lower interest rate wont raise limit. Needless to say my balance is 0. 0 0 0 0 0 0 and they wont get another penny. but ill keep the account open for bonus fico points. Kev
Kev, Why 24.89%? I have had a college card for 2 months, at 11.9% on that and just got a second card for 11.9%. $500 on each.
