Do Credit Card APR's ever come down?

Typhoon2000

Do credit card companies (MBNA) ever reduce interest rates periodocally without you asking or do they ever only stay the same or go up?? I had 3 MBNA card with normal 14.9-16.9% rates that have increased to 29.9-34.9% for no obvious personal reason (nothing wrong with my credit report, no searches in last 12 months, 2 loan accounts settled in the last year, credit card borrowing down to 15% of available credit and even that at 0%).
Anyway, I took the option of the 'freeze interest rates and close account when paid off' option on my last card with the latest rise, but I BT'ed the balance before the 0% deal ends in 2 weeks to my LloysTSB card at 0%. So I will be down to 2 MBNA Cards. I refuse to borrow at these rates so I always clear my balance by the payment date and pay no interest. The thing is I have these for years and have a combined limit of nearly £27,000, and haven't suffered any credit limit cuts as others have reported recently.

I wonder if it will be worth holding on to these, hoping that the rate comes down when the economic climate improves or ditch them and reapply in a year and get the 'normal' APR's ableit with lower credit limits? I am guessing that there aren't going to be any more 0% offers for existing customers from MBNA for a while so there seems little point holding onto my 2 remaining MBNA cards with rates so high that I dont using them. I have 2 other credit cards with 'normal' rates , Lloyds TSB and American Express Blue card.

FoxtonsRIP

Credit card interest rates are gravity-defying, they only ever go up. BoE interest rate =0.5% so can't see this getting any lower.

benf90

FoxtonsRIP wrote: »

Credit card interest rates are gravity-defying, they only ever go up. BoE interest rate =0.5% so can't see this getting any lower.

The base rate has hardly any influence on credit card interest rates. There are other factors more important.

One of my credit card interest rates was almost halved 6 months ago, the account is regularly used and has always been paid off in full. Although it's not an MBNA card.

As for the OP... I would personally close at least one of the cards you're not using. If you keep another open use it each month and pay it off in full.

Even if it's just being used once per month and the balance is cleared in full I would imagine they'd reduce the interest rate and/or offer you a promotional rate after a while.

thriftymomma

I rang and asked my provider to reduce my apr and they kindly obliged. Worth a shot with MBNA maybe?

dhassen

thriftymomma wrote: »

I rang and asked my provider to reduce my apr and they kindly obliged. Worth a shot with MBNA maybe?

This is definatley worth a shot. MBNA (virgin) did it for me, as did RBS. Abbey won't / wouldn't budge though.

As someone else said the BOE Base has little to do with cc APRs, that is unless the CC provider decides that they want to put up your APR when the Base goes up - I've had that as an explantion in the past - strange how they never go down though eh! :rolleyes:

Typhoon2000

Yes may be I'll ask for a reduction in a little while or close my remaing 2 accounts. I am not interested in a reduction to 20 odd %. I want it back to what it was or theres no point having these cards - may as well close them and apply for a new one and get the normal rates MBNA are advertising. It was only 2 months ago they raised it to 30 odd percent and I took the option to close one of them. However, I get the feeling they are not going to bring it back to the old level anytime soon unless I open a new account.
In the 15 or so years I have had a credit card my interest rate has either stayed the same or gone up, never down.

BenL

I usually just switch to one of their competitors with a lower standard rate. Bagging some quidco along the way when possible.

Can't be bothered with all the haggling with them, if they were interested in my longterm custom they would treat me better along the way.

clearing_out_my_pockets

Yes, credit card APRs do come down. My Capital One no hassle platinum card appears to be base rate linked (unless the successive 0.5% reductions were a coincidence) and currently sits at 2.98%

Typhoon2000

clearing_out_my_pockets wrote: »

Yes, credit card APRs do come down. My Capital One no hassle platinum card appears to be base rate linked (unless the successive 0.5% reductions were a coincidence) and currently sits at 2.98%

You have a credit card with a standard APR of 2.98% which is not some form time limited promotion??

cifpower

Mine (Ulster Bank) came down around 2% this month

charlie1104

Typhoon2000 wrote: »

Do credit card companies (MBNA) ever reduce interest rates periodocally without you asking or do they ever only stay the same or go up?? I had 3 MBNA card with normal 14.9-16.9% rates that have increased to 29.9-34.9% for no obvious personal reason (nothing wrong with my credit report, no searches in last 12 months, 2 loan accounts settled in the last year, credit card borrowing down to 15% of available credit and even that at 0%).
Anyway, I took the option of the 'freeze interest rates and close account when paid off' option on my last card with the latest rise, but I BT'ed the balance before the 0% deal ends in 2 weeks to my LloysTSB card at 0%. So I will be down to 2 MBNA Cards. I refuse to borrow at these rates so I always clear my balance by the payment date and pay no interest. The thing is I have these for years and have a combined limit of nearly £27,000, and haven't suffered any credit limit cuts as others have reported recently.

I wonder if it will be worth holding on to these, hoping that the rate comes down when the economic climate improves or ditch them and reapply in a year and get the 'normal' APR's ableit with lower credit limits? I am guessing that there aren't going to be any more 0% offers for existing customers from MBNA for a while so there seems little point holding onto my 2 remaining MBNA cards with rates so high that I dont using them. I have 2 other credit cards with 'normal' rates , Lloyds TSB and American Express Blue card.

Hi there, I am in a similar position. I have had an abbey mbna since about 2000, the apr was 14.9% and they have now shot it up to 25.9%. Phoned and was told that there was absolutely no issue with my account and its at their discretion, so basically they can do what the want. Told them that I had no intention of staying with a company that basically fleeced law abiding customers and froze the account until I can move elsewhere.

I also pointed out that interest rates were at an all time low and they couldnt explain why CC are now so expensive.

C