We have had this card for more than fifteen years! I thought that such rates were not legal. So much for big business. I hope that all readers will remember this note when looking for a credit card company!
2007-10-19 06:25:39 · 15 answers · asked by Jerry G 4 in Business & Finance ➔ Personal Finance
With an interest rate so high, you should ALWAYS pay off your balance. If it means budgeting your money more dilligently, do so, it'll be worth it in the longrun.
2007-10-19 06:30:24 · answer #1 · answered by Bob Smith 5 · 0⤊ 0⤋
Pay on time for 6 months and it will once again reset to a lower rate. It is the new profit making rip off that has been circling around for a few years. I remember when credit card companies had a 5 day grace period. Now inspite of the fact banks are open 7 days a week if your due date is on a Sat, or Sun better have the payment cleared by Fri or you get charged a late fee. Usually around $30-40, then if that puts you over limit another $30-40. Been there done that, finally paid them all off almost. And they have the government, as in our reps, and senators, in their pockets, hence the change in the bankruptcy laws.
2007-10-19 18:03:12 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
Unfortunately many credit card companies are doing this these days. They sneak it into your "Change to Your Credit Card Agreement" things you get in the mail. One of things they're doing is that if you are delinquent in any payment, they can adjust your rate (and the sky is the limit).
In addition to that, these days, the credit card companies are sharing information with each other so that if you're delinquent on ANY credit card payment ANY credit card company can adjust your rate.
Since you've had this credit card for 15 years+, I would pay it off but not cancel the credit card, because credit history length is a large determining factor in your credit score. Just don't use it again or be disciplined enough to pay off the entire balance at the end of the month.
If you've been a faithful customer to this bank, you should call them and see if you can't get your rate lowered. Threaten that if they can't, you might have to get a different card and transfer your balance to the other card. They hate it when you say that. I bet you can get it lowered.
2007-10-19 13:36:54 · answer #3 · answered by Nathan K 3 · 0⤊ 0⤋
Yes, you need to pay it off as it will work against you as a hit against your credit rating. Also, you don't necessarily need to stay with this version of Mastercard. Many financial institutions have standing agreements with credit card providers that can affect the lending rate. It's possible to find another Mastercard/Visa card with all of the same limits, privileges and perks at 1/3 the lending rate.
As an additional level of protection, secure a personal line of credit for such times. This way, if you find yourself short, you can cover the card payment and pay off the credit line later at a much reduced rate.
2007-10-19 15:32:07 · answer #4 · answered by Larry M 4 · 0⤊ 0⤋
If you have had the card for this long and its your first missed payment, call them. Most places will waive a first time charge since you are a loyal customer. Carefull too, as many places will CONTINUE to charge you interest on all new purcahses for 3 months even if you pay your current balance off, so make sure this is not one of those companies that do that, if so, you will have to "pre-pay" the card to avoid that.
2007-10-22 09:45:22 · answer #5 · answered by bunnygurl 3 · 0⤊ 0⤋
Pay it off and close that card. That is how ALL credit card companies are. Once a payment is late, for even a day or two, the interest sky rockets. They don't care about your reasons or even if it will never happen again. They care about their money and just wait for you to forget to pay it on time. That is where they get their money~~through the interest payments.
2007-10-19 13:32:23 · answer #6 · answered by *Almost ready* 5 · 0⤊ 0⤋
Call them and ask them to forgive one late payment. It worked for us! They don't have to, it is in the contract, you were supposed to pay on time... But I absolutely agree it is highway robbery for a nine day error once in a decade or two. If you pay off every month anyways they know you can just go to another company easily and the person I called didn't even hesitate, she just waived the interest change and the late fee. (I was only late by 3 days I think.)
2007-10-19 15:15:41 · answer #7 · answered by Cindy B 5 · 0⤊ 0⤋
Not illegal. You didn't read the fine print with your card membership agreement. They can raise your interest rate whenever they want if you miss any sort of payment with anyone, even your other bills or credit cards.
Pay your bills on time and your credit cards in full each month and you have nothing to worry about.
2007-10-19 14:01:08 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No only is it legal, but some credit card banks will jack your rate up even if you've paid them on time but you're late on some other creditor's account. They then consider you a riskier borrower. All you can do is pay it off and not use it anymore. If they're charging annual fees, close it.
2007-10-19 14:51:25 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Call them and politely explain that you have been a loyal customer for fifteen years. Ask them to reduce the rate back to what it was. If you are a good customer this shouldn't be a problem. If they won't do it, pay it off as fast as you can and close the account.
2007-10-19 14:09:18 · answer #10 · answered by Dominique P 3 · 1⤊ 0⤋