Help Capital One Increase APR

clearing_out_my_pockets

Just out of interest, what balances have you guys got? Both me and my dad have Cap 1 cards, with very different balances / credit limits and we have both had our rates reduced.

the_doc735

I just posted similar here: http://forums.moneysavingexpert.com/showthread.html?t=1433861

MaximumFish

This is a kicker for sure, but it's still the cheapest APR of any of our cards (not including promotional rates). The thing I'd like to know, is if I opt for option 2 and pay off the balance over time it says I'd still need to phone and close the account once it's cleared.

But what if I want to then use the account again, obviously at the increased rate?

Our ongoing plan has always been clear all of our cards' debts, cancelling them as we go, but keeping the Capital One card for Internet and other high value purchases because of the good rate.

Maybe I should email them...

Edit: Their website is currently advertising the Platinum card at 8.5% typical. Why haven't all of us loyal customers been given that rate instead of the 9.94%?

janarchy

I've got a good credit rating,lord knows why, but ceased using capital one card because of interest charges. today got a similar letter to above but with rise to34.94 per cent apr across baord, purchaes, transfers, cash withdrawals. Nothing to lose, as all paid off, so went for option one, ie obliterate my card, and banish it to oblivion, in cryogenically sealed coffin with Capn Kraptonite and the Superannuated Super Heroes crew. I suspect they'll be back ... bigger and badder than ever before. But what an outrage - it's a massive APR. Are they loan sharking by moonlight these days?

thehippo_2

I think this can only be down to credit rating, but how they apply it seems arbitory. I recently did a check with Equifax and it came out as excellent but I was late with one payment to Capital One and I suspect this is why my apr is increasing in March. At the time I did manage to negoiate a repayment of the late payment fee as I had never missed or been late with a payment since I'd had the card. Whilst this isolated incident didn't seem to affect my overall credit score, it certainly sounded alarm bells to CO.

Billy-no-Money

Mine's gone from 13.38 to 20ish; I haven't missed any payments, haven't gone over the limit etc.

However, I've been snowballing and Cap One wasn't my priority - ironically I've just paid the next most expensive debt and next month the snowball was heading for Cap One.

I have two other credit cards, both near the limit but only because the companies (Barclaycard and IF) have both raised the limits and offered LOB transfers, allowing me to move some of the debt from Cap One. (They obviously think I'm a better risk, and in the case of Barclaycard they've reversed a credit limit cut which they imposed over a year earlier).

Presumably this means I look like I'm bumping my card limits and am therefore in trouble - truth is yes, I'm indebted but it's in control (as long as I've got a job...), and all Cap One are doing is making it harder.

I can go for option 2 in my position so it could be worse, but that will leave me with no usable credit cards for the now rare occasion that I need to use one (because I would never use a LOB card for purchases).

Raising the rate won't influence the really big risks because it doesn't directly affect the minimum payment (unlike MBNA, where the minimum payment is almost entirely made up of interest). So people who just rack up debt and only look at the minimum (I was one of those people up to a couple of years ago!) will just keep using the card until it goes bang.

In other words - it does nothing to stop bad risks going sour, but exploits people who are trying to repay their debt.

(And before anybody starts preaching - I know, variable rate, T&Cs etc etc)

Trekkiesi

Hi Guys!,
Just received the all important Capital One letter in the post this morning! almost a 9% increase! :mad: (you can guess my response). My only concern is, if I take option 2 and call them before the 20th Feb to freeze the interest rate, Will this effect my credit rating? or am I safer just paying the increased rate until paid off and then get rid?. I have only really kept this card out of posterity (being my first! and we all remeber that dont we! :rotfl:) I have no intentions of using the card again (at least not now) and dont want to transfer to my other cards as this would upset the happy Zen I am presently enjoying with them :j

Any idea? Cheers Guys.

thehippo_2

I can't see that taking option 2 will effect your rating as it will mearly show a decreasing balance since you will no longer be able to use your CO card.
It would be better to try and pay off any balance before the rate increase and get shot of the card. One less card on your file is a positive. Best plan would be to try and get a Virgin card and a balance transfer to your CO card. But make sure you close the card when its all paid off otherwise it will still show on your credit file.

jazza77

Got letter yesterday as well increasing APR on my Capital One Classic from 29.9% to 34.9%:eek: . Thankfully I have been clearing my balalnce in full on this card every month for the past 3 or 4 months (did wonder if this affected their decision? ) and have other cards could BT to anyway on lower APR.

One of those is Mint on which my current APR is 12.9%. Was considering cancelling the PPI on this and moving to a stand alone policy, but did cross my mind that this could have an adverse effect on my APR. Anybody else had any experience of this?

Willowsdad_2

Be careful and read the letter carefully - if it was a balance transfer for life thats what it should be. I have had a similar letter changing my rate to 19% but the balance transfer was at 3.9% back in 2003 - in small print it says that this change does not affect balance transfers before a certain date (very small print!) so actually I do not need to do anything if I have not used the card after that time. I will sit back and continue my nice rate.

Unfortunately not so lucky with MBNA - paid some tax with a credit card cheque at 12% - they are putting that up to 22% - fortunately already have plans to close that account. I only found out because the interest charged this time was more than the minimum payment last month. Apparently I was sent a letter!!!!!