Virgin Card APR rise

westie666

Just got a letter today from Virgin Money.
APR is going up to >34%.

I am struggling to make the payments just now......please dont shoot me down, just plodding away trying to fight the fires just now.

My "credit file" is shot to b**gery just now, and cannot get another credit card to xfer the balance.

Is there anyway I can lower the APR rate??

W666

nickmack

westie666 wrote: »

Is there anyway I can lower the APR rate??

Sometimes if you call, they will lower the APR, but if they refuse, you have two choices really.

You can transfer the balance to another card on a promotional rate or ask them to close the account and repay at your current APR.

westie666

Thanks Nick,

Problem is, I dont have enough to cover the whole amount, or the credit rating to move to another card.

may need to suck it and see....

G

nickmack

westie666 wrote: »

may need to suck it and see....

In that case, call them up and ask if they'll reduce the rate. If not, tell them to close the account and keep the interest at the current rate until repaid.

Dabooka

Might be wrong, but I believe by closing the account that freezes the APR until it's paid off (almost like a loan?) rather than by asking for full settlement. Obviously in effect you'll be cancelling your card to, so you'll not have that to use anymore. That might leave you without a CC for sometime if your rating's screwed.

Someone more knowledgeable in these matters will pop up soon to tell me either right or wrong!

westie666

The card is not currently being used.
We got it when my wife was at uni, just to tide us over until she got a job.

So we agreed at the time, and still keep to the line of this is going to be cancelled when paid off.

Sounds like I could close the account, freeze the interest, and pay off just like a loan anyway.

Thanks
W666

BenL

I don't think they freeze the interest. They freeze the interest rate. So instead of it going to 34.9%, it stays at 25% or whatever and it acrues interest at this lower rate.

moneysavingmarrow

If you read the rest of the letter and understand it, it probably says that if you do not respond and accept their new "deal", your account will be closed and your balance at the moment will be stuck at the interest rate they are charging you now untill it is paid off and would you please destroy your card. (Or words to that effect).

westie666

BenL wrote: »

I don't think they freeze the interest. They freeze the interest rate. So instead of it going to 34.9%, it stays at 25% or whatever and it acrues interest at this lower rate.

Sorry, it was my phrasing, I knew it was the rate, and not the amount.

Thanks
W666

westie666

moneysavingmarrow wrote: »

If you read the rest of the letter and understand it, it probably says that if you do not respond and accept their new "deal", your account will be closed and your balance at the moment will be stuck at the interest rate they are charging you now untill it is paid off and would you please destroy your card. (Or words to that effect).

Thanks MSM,
Need to look at the letter, just saw interest rate rising to more than current.

Cheers
W666