CC has doubled the interest rate

Neoshoegal

Update: I finally managed to check my credit report and everything on there seems satisfactory, even all the details on the Virgin card are green. Admitely, I am near the limit that I can get credit anywhere, but all is still in satisfactory order according to my credit file. I've also checked hubby's file and again, nothing flags up there either.
Now to make matters worse, Virgin has sent me another letter today stating that from July my interest rate will be an extrotionate 34%!!! (I might as well go to loan sharks in the less well parts of town and get a better deal there!). Luckily, I've got some extra money coming in the next 2 months that should pretty much pay off the whole card.
This whole deal has left a very bad taste about Virgin with me. I have in the past booked several holidays and flights with them, but now, I've completely lost any faith and interest in the Virgin brand.

About 15 months I got a Virgin Credit card with the 0% balance transfer for 15 months that would after that time go to 16.6% APR. I did my balance transfer and all was going well. In August I was late making a payment (their statement arrived late in the mail and with being away for work around that time, I just missed it, my mistake, I fully admit that).
Then in September I get a letter to say they are reviewing my account and that the rate will be raised to 29.9% APR from October :eek:
So I phone them up and after a nice and friendly chat, they put me back on the 0% rate. I assumed that when my 0% deal would end in April, that I would go back to the original rate I signed up for (the 16.6%) and that the whole 29.9% thing was gone.
I was obviously wrong. My 0% deal has ended and I am now on a 29.9% rate. I phoned them up asking why and they said there had been a review of my account in September and that it was decided that was the rate needed to run my account. They said they can review accounts at any time, but when I asked if they could review my account again now, the answer no. The only thing they said I could possibly do was write a letter.
So I miss a payment once, honest mistake and they were very helpful at the time, I didn't even dispute the £12 late payment fee. But because of it, I'm now slapped with an APR that is double than what I signed up for. The balance on the account is quite high (DH has had to take a reduction in hours at work because things are going really bad there, meaning we had less to pay off the cards). I doubt I'd be able to get another card with a better deal with anyone at the moment because of being a) self employed and b) the joint account with DH not being as healthy as it used to be.

So do I write a letter to Virgin and if so, what exactly do I ask for?
at the moment (although this will get better again over the next few months).

Moggles_2

I assumed that when my 0% deal ended in April, I would go back to the original rate I signed up for (the 16.6%) and that the whole 29.9% thing was gone. I was obviously wrong. My 0% deal has ended and I am now on a 29.9% rate.

That was a dangerous assumption to make, certainly.

If you check the paperwork, you'll find the standard rate you signed up to is not fixed, it's variable. This means Virgin reserves the right to change the rates at any time.

Still, you've had the use of Virgin's money for 16 months at 0%, which can't be bad.

I doubt I'd be able to get another card with a better deal with anyone at the moment because of being a) self-employed and b) the joint account with DH not being as healthy as it used to be.

Depends what you mean. Have you checked your credit reports to see what's on there? (For help, see page 1 of the *How to obtain credit reports* sticky)

Self-employed applicants tend to score a little lower, it's true, but some still get accepted

To help you further with this, we would need to know which credit cards - besides Virgin - you have at the mo?

Neoshoegal

I realise they can change their terms at any point, and you're right, dangerous assumption to make. At the time, work was just so busy that I didn't think of persuing it any further. Stupid, I know.

I've just gone through the credit report article and signed up with Experian but for some reason they can't seem to access my report at the moment. Will try again later.

I have 2 other cards, one American Express and one GE money. I've had those for years now. I recently actually missed 2 payments on the GE money one. I was converting the payment scheme to a direct debit but the first time it hadn't gone through for some unknown reason (GE refunded the late payment fee). Second time it had gone through, it was all set up on my end but not yet in the GE system. So again I made a stupid assumption that it would all go through automatically so didn't pay the usual way, but it hadn't yet. Again, a quick phone call sorted it all out and was refunded the late payment fee. That's another reason why I assume I would have trouble with applying for a new card.

Also, apart from having my own bank account, I also have a joint with DH. With his financial situation being rather pants at the moment due to the job reduction (I try to add extra money to his account, but it won't be really healthy again until June/July) and he's missed a payment on one of his cards too (money was about to go into the account, but it arrived too late for the cc payment to be made). So right now we're in a bit of bad situation financially However, business is looking up, so it's not all doom and gloom, but the 29.9%APR is really bugging me.

sdooley

Certainly write to Virgin and ask for the rate to be reduced.

However for the long term it looks like it might be more useful for you to have a loan rather than a credit card as the rate will be lower and, with being self-employed, there will be the discipline to pay off some capital each month. Unfortunately no-one offers 0% loans but the rates can be a lot lower than credit cards.

If you prefer a credit card, what about a life of balance rate rather than a 0% rate where you get caught out at the end.

Moggles_2

I recently actually missed 2 payments on the GE money one. I was converting the payment scheme to a direct debit but the first time it hadn't gone through for some unknown reason (GE refunded the late payment fee). Second time it had gone through, it was all set up on my end but not yet in the GE system. So again I made a stupid assumption that it would all go through automatically so didn't pay the usual way, but it hadn't yet. Again, a quick phone call sorted it all out and was refunded the late payment fee. That's another reason why I assume I would have trouble with applying for a new card.

There's a difference between late payments and missed payments. Fortunately, it sounds as though yours are the former.

Payments that are missed altogether can wreck your credit rating for years, but late payments are viewed as negative only if you attract more than two in a short space of time. Even then, the effect is very short-lived. It's your payment history with all your creditors over the last 6 years that counts, with particular emphasis on the most recent 12 months.

That said, you need to check your Experian report to see exactly what's there.

Moggles_2

Apart from having my own bank account, I also have a joint one with DH. With his financial situation being rather pants at the moment due to the job reduction, I try to add extra money to his account, but it won't be really healthy again until June/July)

The actual balance is of no consequence, it's whether there's negative data associated with this joint account. Once again, you need to check your Experian report.

He's missed a payment on one of his cards too (money was about to go into the account, but it arrived too late for the cc payment to be made).

As above (#5), this is potentially serious if the payment was missed altogether.

Couples are normally scored individually ie. His credit status neither helps nor hinders yours. Unfortunately you are financially linked to him, because of that joint bank account.

Neoshoegal

Thanks for all the advice. As I mentioned, trying to sort out the Experian thingy, but it's telling me to check again later.

Nice to known there's a difference on the records regarding missed vs late payments! As far as I know, it's always been just late, and never very late, usually sorted within a week of missing it.

Will try that letter to Virgin.

Neoshoegal

As above, this is potentially serious if the payment was missed altogether.

Couples are normally scored individually ie. His credit status neither helps nor hinders yours. Unfortunately you are financially linked to him, because of that joint bank account.

he didn't miss the payment completely, it was late. He does it on DD, but there wasn't the money in the account in time for it. His CC called him about it within days and he was able to pay straight away by that time. (the money that I transferred to the joint account just took a few days to arrive, didn't arrive in time for the CC payment)

Robert_Sterling

There is a lot to be said, and I have often said it, for setting up a DD for at least the minimum amount to be taken automatically each month by the lender.

Moggles_2

Might be an idea for your husband to order his Experian report too.

Depending on the results, you may want to consider separating your financial affairs. Once your current a/cs were separated, you could write to the credit reference agencies and ask for a notice of disassociation, to prevent his credit history affecting yours in future and vice versa. Just a thought.

Let us know how you get on with Experian.

clio

Did GE Money put your apr up Neo like Virign did ??