Capital one changing rate??

sukinas · 27 January 2009 at 10:29AM

Hi there

I have been with Capital one since 2005 and I signed up at a rate of 5.9% for life.
I got a letter this morning saying bacause of the current climate they are raising my interest rate to 9.9%! I have a balance transfer on there that I am paying off and the optioins they have given me are:

1) Pay at 9.9%
2) Pay the entire balance off and close the account
3) Pay at the existing rate but my account will be automatically closed when i've paid it back.

I Have a high credit limit with them and a bit concerned about closing the account in case i can't get more credit.

What would you do??

clio · 27 January 2009 at 10:34AM

keep it 9.9 is still a cracking deal....
Have they said the LOB is now at 9.9 as well or only new bt,s etc??

sukinas · 27 January 2009 at 10:45AM

They are shifting the existing balance to 9.9% as well as any new BTs or purchases.

cifpower · 27 January 2009 at 10:49AM

How high is your limit? And is this your only credit card?

sukinas · 27 January 2009 at 10:55AM

It's £8000 and sadly no not the ony credit card. I have a balance if £3065 on it at the moment. I don't have a better deal on any of my other cards at the moment- not by the time i've payed the 3% fee anyway.

cifpower · 27 January 2009 at 10:57AM

I would bite the bullet and pay the 9.9% interest rate.

clio · 27 January 2009 at 11:02AM

Well so much for the life rate of the balance contract, if that was a customer changing payements to them,
they would be on you like a ton of bricks. When it's them - the customer gets stung. Terrible business on their
part if you ask me.

sdooley · 27 January 2009 at 11:14AM

I would go with option 3) Pay at the existing rate but my account will be automatically closed when i've paid it back.

Then you keep your existing credit at 5.9% (which is reasonable). Going up voluntarily to 9.9% is silly - they'll mark you down as a mug and put it up to 10, 11, 12, 15%.

imara · 27 January 2009 at 11:20AM

Hi there

I have been with Capital One for over 5 years and owe just under £4000. I had a letter today telling me my interest rate is going up to 28% pa!! I always pay over the minimum amount so I can't believe they are treating their long standing customers like this!

Billy-no-Money · 27 January 2009 at 1:49PM

Some of the Credit Card companies are being extremely short-sighted and unimaginative in how they manage their risks.

I owe too much, and they've been right to pick up on that, but I know when I've finally reduced my debts and become a desirable customer again I certainly will not do business with either of Capital One or MBNA.

Barclaycard and Halifax on the other hand have treated me fairly so far, and if that continues until we come out of this panic situation I know which accounts I'll keep open.

The approach taken by Barclaycard (reduced limit) controlled the risk without punishing me. Halifax have done nothing (apart from increase my credit limit and offer balance transfers!). But MBNA and Capital One have punished borrowers and, in their greed, increased the risk of default. :mad:

Anyway, rant over for now.

clio · 27 January 2009 at 6:23PM

Billy
Sad innit, how they can probe your accounts hoping for a sign of weakness and then pounce like a starving rottweiler. hope you can survive matey:)

Capital one changing rate??

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