Raised interest rate

Melvina

sainsburys have informed me that they are changing the interest rate on my CC to over 20% APR from what it is at the moment which is 14% and if I don't like it I can give up using the card and pay it off at current APR. I suppose they don't think I am a very good customer because I have been running the card at just under its limit £1400 all year. Has anyone else had this experience? I don't want to pay higher rate but card is useful and I can't seem to get any others to transfer to, tried Virgin no success. Any advice?

Simon_Preston

Any idea what sort of state your credit reports are in? Flybe and Citibank are not too hard to get in my experience. The former offering 6 months at 0% and the latter 6.9% for life of the balance.

Melvina

Probably not great because I work part time and have two other maxed CCs but I always make at least min payment so I will try those two, thanks for advice

Simon_Preston

Also, have you tried phoning Sainsburys and asking them why they are increasing your interest rate so much? You might be able to get them to put it back to its original rate. No harm in trying.

CannyJock

It's because of new legislation designed to protect the consumer from interest rate rises. If you disagree with the interest rate increase they close your card so you can no longer use it.

It's maybe just me, but the number of posts on interest rate increases seems to have gone up since this legislation was announced.

A cynical person would say that the credit card companies are using this legislation as their standard reply, knowing that most people would be concerned about having their card closed.

Does anyone know how a card that's been closed as a result of this appears on your credit report, especially with the new "extra details" some card companies are reporting?

poddle911

I didn't know about this legislation, but it makes sense - I got a letter from Sainsbury's today saying they were upping the APR (on purchases) to 17.9% from August. This follows a letter I got about 3 weeks ago saying they were delighted to reduce my APR on purchases to 11.9% from 15.9%... Seems a bit bonkers to me!

I've just been accepted for a Tesco Clubcard credit card which has some good deals - wasn't sure I would, as I have quite a few other cards (under control) and I've been out of work for 6 months and started a new job a week ago, but no problem and reasonable 3k limit.