Grr MBNA - massive interest rate hike.

jamalfatty

ChrisH wrote:

It just doesn't shout responsible lender to me at all!

I understand your frustration, but how is increasing the APR irresponsible lending? If they upped your credit limit also then maybe so, but not by increasing the APR.

More often than not, accounts are priced according to risk, by your own admission your not in a position to clear this balance off or move it elsewhere so your debt would be deemed higher risk, hence the APR rise.

Many people forget that when they enter these kind of credit agreements the APR can and will change so you shouldnt be too shocked when/if it happens, and if you dont like paying these sorts of rates, you shouldnt be in a position where you cannot pay the full balance off.

I'm by no means a 'fan' of the banks, but you have to see this from both sides

ChrisH

Hi guys

Thanks for all your replies, has been interesting reading! I'm going to take a look at the Co-Op's card offer and give them a call so thanks for that Ermitsme. :cool:

If I was only making minimum payments each month or missing payments, I can understand that the card issuer may put up the APR as I would fall into a higher risk group. However, they have no reason to assume this as I've been regular paying off £100-£130 per month in order to clear this balance down now.

At least I won't ever make the mistake of having a credit card again.

Thanks for your replies guys, much appreciated.

Regards
Chris

Phoenix79_2

ChrisH wrote:

At least I won't ever make the mistake of having a credit card again.

Don't be so quick to knock them. They can be a useful and valuable tool if used properly

nomoneytoday

You admit you can't BT or pay off the balance. I'm not surprised when CC companies put up the interest rates?

Rafter

All the credit card companies use statistical models about the risk of you transferring elsewhere, going bust and not paying your bill and other factors.

It could just be that people in your postcode with the amount of debt you have show a high probability of going for an IVA and declaring bankruptcy. As a result MBNA have bucketed you in a high risk group and repriced you.

They are legally entitled to do this and as you have no ability to move the funds elsewhere it does kind of suggest that you have a lot of debt and might be in a higher risk lending category for them.

As others have said, start tackling your debt and repaying the highest rate stuff too and wait till the searches drop off and maybe you can find a decent card to BT to and tell MBNA's computer system to get lost!

R.