They did it to my mother, so she cancelled. Then today I got a notice in the mail that mine is going from 5.9% to 15+%... are they trying to lose all of their customers? There is no way in hell I am going to pay that, so I will be cancelling my cards.
I have never missed a payment or been late. I pay more than minimum payments but I am not close to paying it off, so they are definitely earning interest from me.
2007-07-31 00:59:52 · 5 answers · asked by RadTech - BAS RT(R)(ARRT) 7 in Business & Finance ➔ Credit
Yes, we got the notice too. Our's is going from 14.9 to 19.9. Their excuse was "In light of rising interest rates over th past few years and the rate currently applied to your purchase account balance, the APR on your account is about to increase". Not because we have bad credit or that we have been late on payments. We usually don't use capital one for our purchases but we do take advantage of some of their low balance transfer offers so it won't really affect us right now, BUT we will be watching this account more closely to decide if it is worth keeping.
We were given the option to decline the changes and canel our account. If we decline, we will be able to pay down our account at our exsiting terms. They will close the account after the blance owed is $0 and they confirm that no new charges have been posted to the account. Check your notice for this statement.
2007-07-31 08:25:09 · answer #1 · answered by 4532 3 · 1⤊ 0⤋
Yes, I also just got the notice. This increase has nothing to do with your credit score. This is happening / has been happened even to people who don't carry a balance. They are doing it "in light of rising interest rates"
In the short term what will happen is they will collect all the balances from the prime card holders who can either payoff or transfer their balance to another company, increasing their cash flow. But in the end they will lose these customers. I ain't gonna use their card anymore. I guess they don't make enough money off of us loyal low interest customers.
In the long term they will be left with the sub-prime customers who have no chance of transferring their balances or paying off their card. They'll be getting ridiculous rates of return, until those sub-prime customers go default.
It appears they are going for a high risk/high return customer base in their credit card division. Good luck Capital One and Good bye!
2007-08-01 02:10:42 · answer #2 · answered by Walter L 2 · 0⤊ 0⤋
5.9% sounds like a special offer card. 15% is about an average rate.
Capital One frequently reviews credit scores and adjust interest rates. Like some other credit card providers, they increase your interest rate if your credit score goes down or any negative appears on your credit report.
If you want to get the lowest interest rates, pay your account in full every month. They'll give you even lower interest rates to entice you to charge up that card.
By the way, if you close that account before you have paid it in full, your interest rate will shoot up to 29.9%.
2007-07-31 11:22:44 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
I got the letter today. I'm getting rid of them asap. I've been a cusotmer for 20 years. when I first got the card my credit was shaky , but now its great. i don't need them.
2007-08-01 15:14:18 · answer #4 · answered by rrh2 3 · 0⤊ 0⤋
i do not know - i do not own a capital one card and would not advise anyone else to.
2007-07-31 08:34:41 · answer #5 · answered by mister ed 7 · 1⤊ 1⤋