Capital One BIG interest rate hike

milliemonster

Well I've had my Cap One card for a few years and it had a zero balance on it. I phoned a few months ago to close the account but they offered me a LOB transfer at 6.5% if I stayed, so I decided to transfer a balance from one of my higher interest cards with a view to not using the account anyway and just paying off the balance at that rate.

I got a letter from them yesterday to tell me they were increasing my rate to 13%, but I could opt out bla bla bla, well I phoned them this morning and they still tried to persuade me to not opt out as it was ONLY a 7% increase per annum and therefore when you break that down per month its not that much.

I am actually very angry that they told me it was a LOB at 6.5% a few months ago and it has turned out not to be the case, he went very quiet when I told him this was what I was told originally.

So I have opted out and it will stay at 6.5%...result!

kaisersoze_2

Does opting out have any affect on your credit rating or does it show up as normal on your file?

Moggles_2

kaisersoze wrote: »

Does opting out have any affect on your credit rating or does it show up as normal on your file?

Yes, most lenders continue reporting your payment history to the credit reference agencies as normal so, provided that record is good, the account contributes positively to your credit rating as before.

TFD_2

I've got a Classic card at 30.34% - opened a year or so ago. No letter yet, but expecting one through soon. This is a strange APR as most people seem to have much rounder ones... any idea on a possible increase?

hax_2

Hi TFD

30.34% is not the APR, it is simply the monthly rate (2.528%) multiplied by 12.

The APR for a monthly interest rate of 2.528% is 34.94% (assuming no annual fee, which this card doesn't have). I also got a letter saying they will increase it to 39.94%.

Hope this helps.

misscutiepie1984

they defo have not increased all customers apr as whilst I recieved the letter about my APR going up my bf received one about 9 months 0% balance transfers how fair NOT.

aadhar

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Cash_Flow

hax wrote: »

Hi TFD

30.34% is not the APR, it is simply the monthly rate (2.528%) multiplied by 12.

The APR for a monthly interest rate of 2.528% is 34.94% (assuming no annual fee, which this card doesn't have). I also got a letter saying they will increase it to 39.94%.

Hope this helps.

What are you talking about??

M155_RFJ

I got my joyous letter yesterday in the post, to which my reaction was "AAAAH MUCH?!!"

Will be clearing my balance (£400-odd) as quickly as possible and telling them to go forth and multiply...

Have I got it right that if I ask them to cancel the card while there is still a balance outstanding they can do that for me at the current interest rate; I just wont be able to spend on the card anymore?

selecta_c

M155_RFJ wrote: »

I got my joyous letter yesterday in the post, to which my reaction was "AAAAH MUCH?!!"

Will be clearing my balance (£400-odd) as quickly as possible and telling them to go forth and multiply...

Have I got it right that if I ask them to cancel the card while there is still a balance outstanding they can do that for me at the current interest rate; I just wont be able to spend on the card anymore?

Yes mate thats correct.