Secured Orchard Bank card and APR increase?

Question

Anyone had this happened to them? Is it normal? I opened my account with them in March 2006 and never paid late. It's my first credit card, even if it's secured, at least it's on all three reports. I was fine until now. At the beginning, I paid the whole balance off, lately I've been keeping some balance (well, quite high). My APR was around 16-17%, no big deal, when my credit is $200. But now, they want to up it to 27.99! For now reason apparently, I called them as letter suggested, to ask for specific reasons. Supposedly, this decision was based on my credit report (which is getting better over time, with more account). The weird person on the phone explained, that after 6 months, they either increase your limit or APR. Huh???

Answer 1

Orchard Bank---is THE WORST CARD to have, I use to have it, and yes every 6 mos or so they would raise the APR, and then 6 mos later, raise my credit limit, then all of sudden 6 mos after that they reduced my limit (to start $200 at 16% APR, 6 mos later $200 @ 23% APR, 6 mos later $300 ar 23% APR, 6 mos later $200 @ 27% APR) when they had reduced my limit, I had just used the card to get an emergency plane ticket for my husband to go to his grandfathers funeral, I always paid this card on time and paid it off each time. When I had gotten the bill for that particular month it said I was overlimit, which gave me a $27 over limit fee, no matter how much I argued and fought with people or the phone it didn't matter, they told me they could do what they wanted to, I paid the d@#* card off and cancelled it and cut it up and mailed it to them. Now whenever I get their offers, I mark the envelope "return to sender" and mail it back.--So my advice--GET RID OF THAT CARD---look into a Citibank card or even a card through your bank instead.

Answer 2

It sounds like you had an introductory period for the first 6 months, and after that they would evaluate your credit and determine whether to keep your interest rate the same, lower, or higher.

Unforunately they decided to raise it...don't stay with them if that's the case. They obviously don't value you as a customer. Pay off the balance if you can, or open a new card with a 0% APR for the first 12 months, then do a balance transfer to that new card, and enjoy 0% interest for 12 months.

There is no reason to pay 27.99% or even 1% for that matter when you can get cards at 0% APR.

Educate yourself about credit, mortgage, and finance at:

http://www.thetruthaboutmortgage.com

Answer 3

I Agree with the other posters in here, Stay way from Orchard Bank/HSBC altogether!!! They are a predatory lender and a bunch of liars.

Last year I reply to one of their pre-approved offers for a Platinum Elite MasterCard with a No annual fee an a introductory low variable 6.99%APR for 9-months on purchases and balance transfers and automatic credit line increases every month.

My FICO score was 716 at that time and none of those promises {except the 6.99% APR} were honored. They gave me an initial credit line of $300.00 and had NEVER increase it., even after several request.

After the introductory period passed, the APR when up to 32.78%, my credit reports have not change, Never late, Nothing negative. I always pay my balances in full every month but nothing.

They are fee hungry. If you're not careful, HSBC/Orchard Bank will find a way to get you.

Answer 4

i become in a similar situation 6 years in the past and that i only stopped paying and it become the final determination I ever made. in the beginning, they'll call you consistently. I had to alter my telephone style as a results of fact of it. in spite of the utmost of psychological fortitudes, a set call is an exceedingly emotionally problematic experience to take. I did my ultimate to ward off them, yet at last they arise with you and no count how plenty you maintain on alongside with your weapons, the threats and emotinal torment they placed you thru is only too plenty to endure. So, replace your telephone style and difficulty solved. they'll deliver you all varieties of threatenning letters. forget approximately approximately them. they're bluffing. they're honestly very constrained on what they are able to do. So, what can they do? they are able to seek for a judgement against you in small claims or in court (if its better than $5,000), yet that does no longer recommend plenty. and that they gained't do it till they be attentive to the place you're working or have the suggestion on some thing you own they are able to place a lien against consisting of a vehicle or a house. dwelling with a bad credit isn't this sort of undesirable ingredient. Its honestly an exceedingly reliable ingredient. It helps you be disciplined and that throughout the time of turn saves you a ton of money in interest. After 7 years, the undesirable bills drop off your credit record. the biggest hassles are procuring a vehicle and renting an place of abode. yet you are able to in case you have acquaintances and relatives keen to help each and every now and then, you may get by using them honestly. i'm honestly doing somewhat nicely financially recently, yet there is not any way i'm paying those credit taking part in cards back. They roped me in at 18 years previous by using giving freely marijuana-themed t-shirts at my college campus. they do no longer deserve a penny from me. and that i'm never going to be in debt back, no longer even to purchase a house. i'm paying money till the day I die.

Answer 5

Get away from Orchard Bank, they prey upon desperate people who need credit and then they charge people to death in credit charges just for using them. If you have developed some good credit history, find a different card compnay and then can Orchard Bank