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ARP Rate Change

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Old 09-19-2009, 02:58 AM
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Default ARP Rate Change

Hey,
I remember hearing the President talking a while back about trying to make laws to make it harder for credit card companies to hike APRs on accounts in good standing. Does anyone know if such a bill passed?

The reason I ask, my Citibank Sears Card, I just got a letter in the mail. They are raising my standard rate to Prime Rate plus 21.99% (making it 25.24 as of 1Sept).
Right now, my rate is 23.24%.
A year ago, it was 17.33%, and 8 months ago it was 16.58%.
(My main credit card is 8.24%, and my Best Buy Mastercard is 14%, so it's not because I'm some kind of douchebag who doesn't pay anything else)

Mind you, my account has been active since June 2005, have never had a late payment, have always paid more than minimum and always paid off early.
However, I do typically carry a $0/due (nothing owed on it), if that makes a difference?

Does this seem right? I'm actually sending them an email right now, since I've already given them my tax money because of their failure to properly do their job.
 

Last edited by dodgerules86; 09-19-2009 at 03:00 AM.
  #2  
Old 09-19-2009, 07:54 AM
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Tell them that if they choose to raise the rate, they can kindly suck it.

1. You don't need that card.
2. So long as you don't pay an annual rate and never carry a balance, it's a moot point.
3. Good credit requires about 3 things: your debt to income ratio, your payment and credit history, and how much lenders are willing to lend you. There are more factors, but these are the biggest ones and some of those other factors aren't anything you can control.

To raise your credit you can do the following:

Keep a card with a company for over 5 years and use it occasionally. This creates a long term credit history.

Pay your bills off COMPLETELY every month.

Don't obsessively check your credit, and don't apply for a million cards. Every time somebody "checks" your credit when you apply for a loan, card, or just to check, it can count against you.

If you have a long history with a card company, call to have your credit line increased. If you can get a card company to raise your line of credit over $20,000 on a single card, It will really boost your score.

You need multiple lines of credit, but not too many. Every time my wife and I buy an appliance, we open a line of credit with the store we purchase from, if we don't already own one, and we NEVER buy unless we get 1 or 2 years of no interest payments. We ALWAYS pay it off in time.

NEVER get a card with annual fees, unless you are going to get way more out of it than the annual fee. My wife and I have an American Airlines card with a $50 annual fee, but we charge enough to get a free flight almost every year, so it's like flying on a $50 ticket.
 
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Old 09-19-2009, 11:02 AM
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Yes, it passed and took affect in September. What the credit cards did to bypass it is change most cards to variable rate cards which are exempted. They can change the interest on those at any time, they just have to give you 45 days notice before raising it. The law was written to be easily usurped, intentionally. The Democratics want the bankers money as much as Republicans. They just hope people are to stupid to see through it.
 
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Old 09-19-2009, 01:22 PM
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Thanks for the replies. I kind of figured companies got their way with laws in this country, no matter who was in office.
I don't plan on cancelling the card, because it's a Sears Mastercard, and sometimes they have nice deals like 0% interest offers. Oh well, at least they won't be making interest off me!
 
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Old 09-21-2009, 08:37 PM
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citi is the worst dam place to get a f'ing loan.... all im gunna say.
TERRIBLE !!!!!!!
 
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Old 09-22-2009, 01:31 PM
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Its been happening to me as well! Several companies have done it. They hate the people who pay there balances off before they make the interest...
 
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Old 09-22-2009, 01:46 PM
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...And the other option for them?
Oh yea, the people that don't pay jack, and than settle for pennies on the dollar.
I fricken hate hearing those commercials on TV/radio. "If your over (name an amount) in credit card debt, call us, and we'll settle it!"

Oh yea! So that me and other people that pay our bills and live within our means can pay for retards that can't look at their bank statements.

Credit card companies won't work with those that could actually (will actually) pay their bills. Then damn them if they think I'll pay their 25% interest rate.
 
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Old 09-22-2009, 02:57 PM
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I have four credit cards all in good standing and two of the companies have written me saying my APR will go up in December. The law that passed a few months ago had no teeth in it, the cc companies just have to spell out in clearer language how they are going to screw you......

Dusty
 
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Old 09-22-2009, 04:30 PM
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Hey Dusty, it's good to see you're back! How's life off the grid treating you?

We hold 2 credit cards. National City with a prime plus 0% home equity line and a Best Buy that we pay as a 6 mos same as cash.
 
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Old 09-23-2009, 11:59 AM
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Originally Posted by dodgerules86 View Post
...And the other option for them?
Oh yea, the people that don't pay jack, and than settle for pennies on the dollar.
I fricken hate hearing those commercials on TV/radio. "If your over (name an amount) in credit card debt, call us, and we'll settle it!"

Oh yea! So that me and other people that pay our bills and live within our means can pay for retards that can't look at their bank statements.

Credit card companies won't work with those that could actually (will actually) pay their bills. Then damn them if they think I'll pay their 25% interest rate.
I am right there with ya! I called one of the companies up when I got their letter, and the lady said basically there are people with far worse interest rates. I told her I didnt care and that was there prerogative, mine was to be on the top because I work and pay for my **** and you bitches are penalizing me. Of course....NOOOO they werent penalizing me its just "a few bucks more a month". My response was asking if I was actually gonna sway her company one way or another financially, of course she couldnt answer it. BS... sorry I get kinda upset over this because like you said we live within our means and get the shaft...
 

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