Credit card interest rate being increased.

tempsc

Hello. This is my first post.

I wonder if ayone can provide some advice please? My credit card provider, MBNA, have recently written to me, advising that they intend to raise my credit card interest rate. I always make my payments, although sometime s a few days late due to travel away, but have never strictly 'missed' a payment at all. Has this happened to anyone else? Can I appeal? They have suggested that I pay off my balance so as not to incur the higher charges but havng made all my payments, I feel that I am possibly being treated unfairly.

Anyone else got any view or advise on the matter?

Thanks in advance from a newbie.

magiciansgirl

A lot of credit card companies are raising the APR as well as reducing credit limits. You can appeal, but although having a couple of late payments should not affect your credit score, it does affect the card companies view of you. It would be better to pay by direct debit so that the payment is never late.

CLAPTON

I don't understand why you chose to damage your crerdit rating by paying late...
surely you can set up a DD or simply pay before you travel or pay whilst travelling.

lots of people are reporting that CC have increased the APR; good bad and OK customers.

They have reasobaly given you the option of retaining the current APR if you wish to stop using the card.. I would suggest you take that option and obtain a new card with a lower APR preferrably with a 0% BT option (and of course try to pay in full each month)

Dabooka

Hi there,

Got to agree with Magiciangirl, unlikely to affect your score too much, but MBNA will have you in their "radar" so to speak. Far better off to have a DD set up for the minimum payment to prevent this happeneing again; travelling away isn't an excuse really, the responsibility is on you to make the payment on time.

You could call and ask, but I wouldn't hold your breath.

bigstevex

I've just had the exact same letter, increase of interest rate from 8.9% to 16.9%

They would not keep it at 8.9% they didn't actually care on the phone so told them to shove it, card paid off and cancelled! 4th time they have done this now, 5 years of not a single missed payment either. MBNA is the most appalling bank i've ever dealt with, i hope they go bust :rotfl:

Moggles_2

Hardly a day goes by without someone reporting an interest rate hike from MBNA. 34.9% APR is not uncommon.

Once your MBNA balance was paid off though (either by you or courtesy of a 0% BT card), you'd be in a strong position to negotiate a rate reduction.

If not, I'd ask to be put through to the retentions dept. Obviously, for this to work, you have to be prepared to vote with your feet and close the account, if you don't get the rate you'd hoped for.

Very best
M

dfh

To the OP-Please set up a DD to pay off at least the minimum as then you won't be late for your payments.Missed payments can have an adverse effect on the interest rate they charge.

CannyJock

bigstevex wrote: »

4th time they have done this now, 5 years of not a single missed payment either. MBNA is the most appalling bank i've ever dealt with, i hope they go bust :rotfl:

You keep going back for more?

If the 0% deal for new customers is good enough, I'd keep going back to give them an opportunity to convince me they're sorry

bigstevex

Sorry ill reword that, 4 times in 12 months they have tried to up the interest rate on my card managed every time to get it back down!

creditcard_g

yea but always remember that only paying the minimum payment is not good for you or your account, if you are regularly close to the credit limit or lift cash you deem yourself as a 'risk' that you are in debt and these seem to be the customers who are being targeted for increased interest.

also any missed pymts on loans,mortgage etc will be sent to the credit card compary via experian etc every 30 or so days