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banking gone crazy.

I Have just recieved a letter from Halifax saying they are going to increase my apr from 15.9% to 20% i rang them and asked why and they said its because more people want to lend me money or increase my card balances that makes me a greater risk to them even though i have a 100% credit score so be warned if you are asked by a credit card company to increase your limit think twice about it as aparently it effects your credit score, i dont know but is it just me that thinks this is plain crazy ?:mad:

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    And breathe.

    Is your full stop keyboard button broken?
  • thegoodman
    thegoodman Posts: 1,235 Forumite
    Part of the Furniture Combo Breaker
    It make sense, the more credit you have in compare to your income, the greathet risk you are
  • mynameistallulah
    mynameistallulah Posts: 2,238 Forumite
    opinions4u wrote: »
    And breathe.

    Is your full stop keyboard button broken?

    It's crazy! ;)
  • staffie1
    staffie1 Posts: 1,967 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    I actually think it's responsible lending rather than the banks going crazy.
    If you will the end, you must will the means.
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    compo59 wrote: »
    I Have just recieved a letter from Halifax saying they are going to increase my apr from 15.9% to 20% i rang them and asked why and they said its because more people want to lend me money or increase my card balances that makes me a greater risk to them even though i have a 100% credit score so be warned if you are asked by a credit card company to increase your limit think twice about it as aparently it effects your credit score, i dont know but is it just me that thinks this is plain crazy ?:mad:

    No idea what a 100% credit score is.
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    compo59 wrote: »
    I Have just recieved a letter from Halifax saying they are going to increase my apr from 15.9% to 20% i rang them and asked why and they said its because more people want to lend me money or increase my card balances that makes me a greater risk to them even though i have a 100% credit score so be warned if you are asked by a credit card company to increase your limit think twice about it as aparently it effects your credit score, i dont know but is it just me that thinks this is plain crazy ?:mad:

    You could always decline the increase couldn't you ? And no-one has a 100% credit score.
  • Gordon_Hose
    Gordon_Hose Posts: 6,259 Forumite
    Debt-free and Proud!
    If you don't want the increase just decline and transfer the balance out to a 0% deal.
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    Well, of course it does. The more credit you have access to, the less likely someone else is going to give you credit.

    If you don't want the 20% APR, you can refuse it and stay at 15.9% (but of course the card will be closed to new transactions), or just transfer to someone else.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Gromitt wrote: »
    Well, of course it does. The more credit you have access to, the less likely someone else is going to give you credit.

    If you don't want the 20% APR, you can refuse it and stay at 15.9% (but of course the card will be closed to new transactions), or just transfer to someone else.


    maybe maybe not

    so some-one who has difficulty in getting accepted for credit cards etc gets a lower APR than some-one who everyone else wants to lend to?

    bizarre
  • meer53
    meer53 Posts: 10,217 Forumite
    Tenth Anniversary 10,000 Posts Combo Breaker
    CLAPTON wrote: »
    maybe maybe not

    so some-one who has difficulty in getting accepted for credit cards etc gets a lower APR than some-one who everyone else wants to lend to?

    bizarre

    Yes you do get to keep the lower rate of interest. BUT, the card cannot be used for any further spending, it will be blocked and remain blocked until the full amount owed is repaid.

    All the card issuers are doing this now.
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