Rate-jacked by Amex

patrickspaycheck

Hi everybody,

This is my first post on here and it's also a request for advice, I've just been rate-jacked by Amex, they're increasing my annual purchase rate from 14.9% to 19.9%.

My first reaction is to reject this hike out right; I shredded the card long ago and don't plan on using it again once the balance is paid off.

However, as I have previously declined a Barclaycard rate-jack this is my sole remaining credit card, I don't currently own a home, and am concerned that if I close this account, I will be harming future mortgage applications.

So, I'm appealing to you; moneysavingexpert forum members for advice here; I don't have great credit so don't think I can do a balance transfer, I haven't missed any payments and they haven't increased the rates within the last six months, so I don't really have anything to challenge them with in terms of bringing in the financial ombudsman.

I'd like to reject the rates, but if it could harm my longterm prospects, should I?

[Deleted User]

Keep it. Still a good rate.

I would ask them for a card as well, and use it at least occasionally, so as to help your rating for when you want that mortgage.

InsertWittyName

If you're concerned about not having a credit card, then you get 30-60 days to reject a rate rise... in this time you could apply for a different card (no need for a BT if you don't think you'd be accepted for one) and if you are accepted in this time you could reject the rate rise.

This would keep you with a usable card and still on the lower rate.

Worth noting that while you pay the balance down on your current card you'll receive green ticks on your credit report regardless of if you accept or reject the rate rise.

Food for thought!