I have a fairly high balance--$16,000 due to graduate school expenses, but I always pay on time and try to pay more than the minimum payment. I make around $45,000 a year. I don't understand why my APR is so high. What can I do to lower it?
2007-02-12 04:11:06 · 9 answers · asked by heatherdoodle5 1 in Business & Finance ➔ Credit
Your card may have had an introductory rate. Now that period is over so the rate has reverted to its normal level. If you paid late on another account, bounced a check, opened another account somewhere, or a myriad of other reasons, it could have caused your rate to go up. Your company will monitor your credit report and anything that happens on it, even unrelated to that card could cause them to change the rate. Just call and ask them to lower it. If you are such a good customer they will knock it down a few percentage points at least. I had mine lowered from 17.99 to 12.99 just by asking. Also look into opening a new card with a lower rate and transferring the balance. Many new cards will allow you to transfer an initial balance for free. Just make sure the rate isn't an introductory one. You can't go around transferring the balance every year.
2007-02-12 04:18:39 · answer #1 · answered by rosekm 3 · 0⤊ 0⤋
Carrrying a higher debt load than you were when you first got the card is likely the reason why they have decided to change the rate on you.
Your credit score has slipped a bit with the added debt and they caught it.
Doesn't have a thing to do with your income.
Your income isn't even a consideration on a credit report.
Plus the simple fact is they did it because they can ~
If you opened your bill immediately you should still have options. You may be able to REJECT the amendment.....
I received notice from a card I've held for a long time with a decent rate (9.9%) that it was going to change to 19.99%.
Never been late but my balance has shot up due to a remodel on a property. My balance will be paid off quickly but they saw opportunity.
This is why you should open your credit card bills immediately!
Besides checking for fraudulant charges, its just wise...
They slipped this new rate change info into the bill - not a separate letter.
Upon reading the whole thing I discovered that I could respond with a REJECTION of this new amendment.
I had to meet their requirements to reject it.
1. Write a letter to a certain address with all my info and state I reject. Do not send with payment
2. Write Immediately or it wont be effective. I had to send prior to my next billing statement closing date.
3. I must not use the account anymore. If it is used anytime after that date, the rate does change and it cancels the rejection. So I had to scan my bill for auto payments I had on that card and cancel those autobilling/online subscription type services immediately.
Hope this helps. If you dont see a paper that says
IMPORTANT AMENDMENT TO YOUR CREDIT CARD AGREEMENT
with REJECTION INSTRUCTIONS FOR APR INCREASE
Call them and ask about it.
I'm checking all of my cards.
For those who pay everything online.....do they send you an email with this info???
Good Luck adn stay proactive! Credit problems come when people bury their heads in the sand!
2007-02-12 12:50:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You may have gotten your card which advertised at a low rate for a certain amount of time{which is always in small print} and then like a years at that rate and then they raise it to the regular rate. You need to call them and ask for a lower rate-most of the time they give a lower rate just by asking. If they don't tell them you will be doing a balance transfer. Find yourself another credit card with a Fixed lower rate and transfer your balance from the other card to the new one.
2007-02-12 12:23:48 · answer #3 · answered by Extra Blue Note 5 · 0⤊ 0⤋
I see why your are concerned. That is high interest! The best thing you can do is look around for a lower rate. Many cards will offer a 0% rate for a year. That is a pretty good deal. Also you can call your card company and ask what is up with that change in your rate. They will usually be pretty helpful. You can even tell them you are thinking about switching companies to get a lower rate and see if they will match it. Bottom line, check around and look for a lower rate.
2007-02-12 12:21:12 · answer #4 · answered by en tu cabeza 4 · 0⤊ 0⤋
If you read your contract you will probably find they have that option at anytime. They can also change your rate if you get additional credit somewhere else, miss another cards payments or inquire about credit. It is a sticky situation now with CC. The best is to not use it anymore and get it paid off asap.
2007-02-12 12:19:37 · answer #5 · answered by Handsome's Wife 4 · 0⤊ 0⤋
You should call the credit card company. There was a time when mine was 32%. I called them and told I was going to cancel the card and they lowered it to 0.00 for 6months and 10 after that.
2007-02-12 12:21:08 · answer #6 · answered by VIchick 1 · 0⤊ 0⤋
Call them up and ask them. Tell them if they wont lower your APR then you will move to a different card. Bet they bring it down but it might just be a mistake.
2007-02-12 13:13:42 · answer #7 · answered by elaeblue 7 · 0⤊ 0⤋
First, call the bank and ask if they lower your rate. Meanwhile, shop around for lower interest card. Try credit union or your own bank.
2007-02-12 12:18:16 · answer #8 · answered by spot 5 · 0⤊ 0⤋
It sounds like you have one of those variable interest cards. Maybe you should do a balance transfer to one of those lower % fixed rate cards.
2007-02-12 12:15:14 · answer #9 · answered by tchem75 5 · 0⤊ 0⤋