Credit card hikes interest, customer closes account, 3 days later new card offered.

BigCraigJohn

Though this was odd.
My brother the other week had a letter off MBNA saying they were hiking his interest by a fair bit. On my advice he declined and closed the account then 3 days later he gets a letter offering a new card with 16 months interest free and a lower apr than he had before anyway. He applied and was accepted.
Whats the snag here?, hes been accepted at the low rate and has got the full 0% offer. Would it of not just been cheaper to not raise his apr in the first place?. Sorry just a big confused as to why they might do this, he is unlike me pretty good with cards and does not use them really. They did not even credit search him.

Typhoon2000

Same here, they have hiked my rates up to 34.9% whilst I was on 0% but I had money to pay it all off. They still give me a total of £27500 credit over 2 MBNA cards and inundate me with new 0% deals. I have pretty much decided that in my case I was chosen for a rate rise because I had a large amount on a 0% deal and they though they could make some interest off me. Nothing to do with risk profiling. If they were worried about risk they would have cut my limit rather than keep increasing it (dispite me holding no balance) and not keep giving 0% deals.