Reduce inflated credit card interest

Pete78

Hi,

I was made redundant a year or so ago, and as a result my finances suffered a bit. During this time my credit card company raised the interest level on my credit card to 29.9% from about 12% - which would have been because of increased risk.

I am back working now and paying all bills and trying to get back on top of things again. I recently wrote to my credit card company asking if they would consider reducing the interest rate as I have made about 6 months full regular payments and have not been in arrears with them for this period. But I have received a letter from them declining to reduce the interest.

I was wondering if anyone knows if credit card companies are obliged to reduce the interest in line with my improving credit rating or am I 'stuck' with it? If they are obliged, I'd very much appreciate a pointer as to the appropriate process I should go through to get them to drop it.

Thanks in advance,
Pete

LeeSouthEast

No obligation whatsoever, unfortunately. It's a variable rate product I assume, and they've varied the rate. The best thing you can do is try and find a 0% transfer deal, but if you've had recent-ish missed payments, you'll struggle to find any.

stephane_2

Unfortunately they are not obliged....you are stuck with it, more likely that they'll increase it again in the near future. Are you aware that next time your credit card company decide to increase your rate, they have to warn you before hand and you can decide to refuse the increase, which means that you stay on current rate but the account is considered as closed, but you'll pay the account until repaid in full.

jonesMUFCforever

Firstly look at your credit reports - if they are clean and you are now earning then there should be no reason why you cannot apply for a new card to balance transfer to.