Credit Card Interest Rate is high

[fbrdphreak]

Hey all,
I'm a college student and have had this credit card for almost 2 years now. At first it was 0% APR of course, then went up to like 15% after 6 or 12 months, something like that. Well, now it seems like they're steadily raising it 0.5% at a time. Anyway to call and get them to lower it? I would just switch to another company like Capitol1 or whatever w/locked low interest rates, but I don't have much credit (What credit I do have is good though) and I know you should keep your longest accounts open.
Suggestions?

Thanks

 

[jadinolf]

I don't know. Call them.

Mine is almost 17% but they (MBNA) never made a penny off me.

 

[spidey07]

call them and demand to be put on the rate that was quoted in the offer.

They can't just raise it willy nilly (unless of course you broke the agreement - like late paying on ANY thing...cable bill, etc)

 

[Zugzwang152]

just call them.

I recently called Chase/Bank One and they lowered my Cash Rewards Visa interest rate for purchase from 11.49% to 9.99% no questions asked.

 

[sandmanwake]

What does it matter? Pay it off in full each month. However, to answer your question, yes you can call the credit card company and ask to see if you can get a lower rate. You'd have more bargaining power though if you had another card--say that you'd like to use their card more, but your other card has lower rates and you want to see if you can at least get a matching rate.

 

[kranky]

Hopefully you don't carry a balance, so the rate doesn't matter.

But if you do have a balance, here's why your rate is going up. You carry a balance and you don't have good enough credit to shop around. So they know you're stuck, and therefore they raise the rate. You don't seem able to pay it off in full, so you need them more than they need you.

Contrary to what spidey07 said, if you read the terms and conditions of your card I assure you it says they can raise the rate whenever they want.

 

[spacejamz]

Originally posted by: spidey07
call them and demand to be put on the rate that was quoted in the offer.

They can't just raise it willy nilly (unless of course you broke the agreement - like late paying on ANY thing...cable bill, etc)

what if the offer was a 0% INTRO offer that ended after a few months and the permanent rate was prime + (insert whatever amount CC company states in offer letter here)...

 

[spidey07]

Originally posted by: spacejamz

Originally posted by: spidey07
call them and demand to be put on the rate that was quoted in the offer.

They can't just raise it willy nilly (unless of course you broke the agreement - like late paying on ANY thing...cable bill, etc)

what if the offer was a 0% INTRO offer that ended after a few months and the permanent rate was prime + (insert whatever amount CC company states in offer letter here)...

true.

guess I'm used to fixed cards. I didn't even consider that they still have variable rate cards.

Thats why you always read the offer completely.

 

[Baked]

What's a CC interest rate? Never heard of 'em. Oh wait, that's right, I have the money to pay off my bills each and every time.

 

[Sex Smurf]

Does this credit card give you any "rewards" back from your purchases? If not, you're probably better off opening a new card - but make sure you don't close this current one. Just keep it filed someplace safe where no one can use it.

My first credit card was a Discover card back in college - it's still active with an $800 limit!

 

[fbrdphreak]

Thanks for all the advice guys. I'm not actively worried about it, I was more curious.

 

[kami333]

Mine is at 26.23% now It was less than 10% a few months ago.

I never use it all so not that it really matters.

 

[Demon-Xanth]

Best situation I had:
Citibank offered me a fixed 10% card, so I went ahead and took it.
...a week later, they offered me a fixed 9% card, so I took it expecting to not activate the first one.
...a day before both of those cards came in the mail, they offered me a fixed 8% card.
I called them up, they changed the 10% to an 8% card and canceled the 9%

 

[dullard]

Yes you can call them and get it reduced a bit in most cases. But, the key is, you should not treat a CC like a loan. Why pay 10%, 15%, 20%, or more on a CC loan? You are a student. March down to your financial aid office and get a student loan. Most of the time you can get a loan for 0% interest while in school (and for up to 12 months after school). Other times you may have to pay interest (currently in the 2% range but soon to be ~5%). But, that is still far better than any CC loan. And you'll build credit very quickly with a proper loan which will help you in unimaginable ways in the future.

Or you can throw hundreds/thousands of dollars away each year. Its your choice.

 

[rudder]

Originally posted by: spidey07
call them and demand to be put on the rate that was quoted in the offer.

They can't just raise it willy nilly (unless of course you broke the agreement - like late paying on ANY thing...cable bill, etc)

The problem is they can raise it. Usually they notify you in that microscopic print in the bill that no one ever bothers to read.

Best bet is to pay off the balance and tell them if they do not lower the rate you will cut hte card and send it back.

 

[StageLeft]

Simply call them. If your account is in good standing they shoulid lower it, especially if you tell them about other cards that have lower rates. I had mine dropped by about 1/3 when I called MBNA a couple of months ago.

 

[FeuerFrei]

Originally posted by: Zugzwang152
just call them.

I recently called Chase/Bank One and they lowered my Cash Rewards Visa interest rate for purchase from 11.49% to 9.99% no questions asked.

Same here, though my previous rate was higher. They check to see how close you are to your credit limit before agreeing to.