Doubling of my Credit Card apr

stevesmithanon

I've got a credit card with mbna and they are charging 35% apr for balance transfers (after ntroductory period) and purchases. It used to be 17% but I think I missed a payment a while back. Anyway, I got a letter saying that my new rate was 30%, then a few months later 35%. Eek!

This is a huge increase. Can they do this? Is there anything you can do to have them reduce your rate or do they do that automatically over time?

Thanks,

Steve

jd87

The rates are variable. It's in the terms and conditions. Sorry. They could charge 10000000% APR if they wanted.

This is why it is important to either pay off your balance by the time the 0% ends, or make sure you keep your credit rating good enough to get a new card when the 0% ends.

Have you tried applying for new 0% balance transfer cards?

Moggles_2

Have you considered applying for a 0% balance transfer card?
Which deal is best depends, to some extent, on which cards - besides MBNA - you have at the mo or have held recently.

Once your MBNA balance was paid off, courtesy of another credit card, you'd be in a strong position to negotiate a rate reduction.

It's also worth remembering that MBNA has a reputation for regular, follow-on offers, which you can use to your advantage once your balance is paid off in full

YorkshireBoy

stevesmithanon wrote: »

Anyway, I got a letter saying that my new rate was 30%, then a few months later 35%.

Did the letter(s) also give you the option of remaining on the old rate if you agreed not to use the card for further transactions?

stevesmithanon

What do you mean by reputation for follow on offers? Doesn't the rate just revert after the balance transfer period expires?

Yes, I would dearly like to have another card so I can transfer the balances around for a lovely low rate. Unfortunately, I have a balance of about £33K and using 87% of my credit limit. I learnt this by using checkmyfile and getting my credit reports. I had no idea they knew my borrowing levels and also credit limits! So, I want to somehow rectify this situation.

My fear is that if I apply for another credit card with a £10K limit or so, I will be declined due to income reasons, the fact I am self employed and also the level of my credit card debt. The funny thing is, I have a credit score of 932 out of 1000 according to that site, which is far better than I thought it would be! So that's a good thing.

Are there many lenders that won't ask income or will somehow overlook my high level of borrowing?

I don't think there was any option on remaining on the old rate, although I can't be sure.

YorkshireBoy

stevesmithanon wrote: »

What do you mean by reputation for follow on offers? Doesn't the rate just revert after the balance transfer period expires?

Once an MBNA balance has been cleared they'll often make you an offer to transfer a balance back to them. I had 0% for 4 years with MBNA until recently.

...I have a balance of about £33K and using 87% of my credit limit. I learnt this by using checkmyfile and getting my credit reports.

You didn't need to waste time and money on a checkmyfile report to know this. The information is freely available on your statements.

My fear is that if I apply for another credit card with a £10K limit or so, I will be declined due to income reasons, the fact I am self employed and also the level of my credit card debt.

I think you're correct. Maybe a visit to the debt-free wannabe board would be a good idea?

The funny thing is, I have a credit score of 932 out of 1000 according to that site, which is far better than I thought it would be! So that's a good thing.

Which just goes to show that those scores, which presumably you have paid for, are meaningless and clearly worthless. Also, the information returned from some of the CRA's via checkmyfile is limited. Did you notice the exclusions when signing up?

Are there many lenders that won't ask income or will somehow overlook my high level of borrowing?

I wouldn't think so. Maybe in years gone by they would be a little lenient, but not with the current state of the economy and especially the financial sector.

I don't think there was any option on remaining on the old rate, although I can't be sure.

I'm sure I've seen this posted by others. Maybe it's a recent thing?

stevesmithanon

According to their site, your credit score is made up of a whole range of factors and not just the level of your borrowing. I am good on most factors except for the level of debt. My payment history on all credit cards is very good. So surely that makes my score better?

I was not aware of any exclusions. Can you please enlighten me on what is excluded??

I will check out the debt-free wannabe board. These forums are a godsend!

What I meant about the 87% of my credit limit was that potential lenders have this information, which I was not aware of.

YorkshireBoy

stevesmithanon wrote: »

My payment history on all credit cards is very good. So surely that makes my score better?

See http://www.stoozing.com/g_score.htm (be sure to read all 6 pages)

I was not aware of any exclusions. Can you please enlighten me on what is excluded??

https://www.checkmyfile.com/process.asp?display=selection&product=CRT&session=242295468

See the information box at the right of the screen, and click the link contained within it.

stevesmithanon

Great links! Thanks for that. Reading the stoozing one and that is excellent. Will get to the other one soon.