Unfair intrest rate raise on my creditcard?

Question

i have an orchard bank credit card, that ive had for about a year, when they checked my history they found that ive never had a late payment with this credit card and that my credit score is above 700. they decided to hike up my intrest rate from 9% to 29% intrest with out a clear reason why. They told me the reason why is because (1.) its based on your credit score to date, and (2.) based on any other credit cards (History) that you happen to have. ok... for the 1st reason- my credit score is above 700, i had a lower credit score when i 1st got the card at 9% intrest, so that cancells that out. so..... for the 2nd reason- i read that they cannot, like its agaisnt U.S. policies to raise my credit score based on other credit cards or accounts that i happen to have. but ive never.. let me say that agiain, never. had a late payment on any of my accounts that ive ever had. (im kind of a credit freak) so why would they hike my intrest?

Answer 1

you're gonna hate this answer, but it's the only one that's true.

They raised you rate because they can...... and they know you can't do anything about it.

If there isn't an annual fee I'd pay off the card, and keep it open, maybe shred the card, and get a new one with a reasonable rate. It will help your credit rating to have 2 cards, and it will piss them off that you don't use it and they have to send you stuff every month.

You can call them and tell them that unless they return your interest rate to 9% you're going to cancel and if they tell you "so what" then I'd either leave it dormant, like above, or cancel it if there's a fee, like below.

If there is an annual fee, pay it off, and cancel it. when they ask why tell them it's because of the interest rate hike.

good luck. I hate these b's, and the legislature isn't doing a damn thing about it.

15 years ago the rates they charge were illegal, now they charge up to 38%.

good luck. there's LOTS of credit out there, you don't have to take it.

Answer 2

"for the 2nd reason- i read that they cannot, like its agaisnt U.S. policies to raise my credit score based on other credit cards or accounts ..."

Not true. In fact, it's just the opposite. They can look at your credit report and any negative on a different account could be their excuse for increasing your interest rate.

Was the 9% some kind of special limited offer? Since prime is around 8%, most credit cards have increased to the 12% to 15% range.

Answer 3

Why on earth would you get an Orchard Bank credit card with a score over 700?

That is a sub-prime company.

And yes, they can raise your rate on your Orchard Bank card if you violate the terms of ANY cardmember agreement.

If your score is over 700 the solution is simple: Get a new card with a repuable company and transfer the balance.

Get a new company, pay off the balance, and stay out of debt.

Answer 4

Capital One did the same thing to me! It was my first credit card at 18 with 12% interest and as my credit got better, the interest rate gradually went up to 28.75% AND they added a $49 annual fee! Since this was my first credit card, I really wanted to keep it, but not at my expense. I got them to credit me the annual fee each year, but I never use the card. Maybe once every few months for $50 and then pay it in full when I get my statement.

With a score of 700, I would get another card. Try AMEX Blue!!!

Answer 5

Get a new card with a bank that will give you a good rate. Credit card companies like Orchard and Providian have their uses if you are just starting out or have had bad credit and are trying to reestablish a good credit score.

Once you get a good score, you need to drop them and move on.

Answer 6

SOMEWHERE IN YOUR CREDIT HISTORY THEY FOUND SOMETHING, SEARS DID THE SAME THING TO ME SEVERAL YEARS AGO, BASED ON MY CREDIT HISTORY THEY RAISED MY INTEREST RATE, I PAID THEM OFF AND WILL NEVER OWN ANOTHER SEARS CARD, THE FINE PRINT WHEN APPLYING FOR CREDIT CARDS IS VERY IMPORTANT READING. ORCHARD BANK, PROVIDIAN, OR ANYTHING OWNED AND OPERATED UNDER HOUSEHOLD BANK ARE BAD NEWS, HSBC THE COMPANY HAS HAD SEVERAL CLASS ACTION LAW SUITS AGAINST THEM FOR THIS KIND OF PRACTICE. THEY CAN USE YOUR OTHER ACCOUNTS AGAINST YOU ALL THEY WANT. I WOULD SUGGEST PAYING IT OFF AS SOON AS POSSIBLE AND GO THRU YOUR LOCAL CREDIT UNION TO GET A CREDIT CARD, YOU GET BETTER INTEREST AND LOWER PAYMENTS BY FAR. GOOD LUCK.

Answer 7

They can change it...

You can refuse to accept the nre terms of the card (Via writting & telephone) but it means that you can no longer continue to use the card.

Credit card companies suck --- they got the world addicted to them and take advanatge fo us all now.

Answer 8

Ask your congressperson why there is no Federal Usuary Law that would limit the intrest that could be charged.

Answer 9

Because they can...I suggest finding a new company...that'll teach 'em