Credit Card Help

Timalay

My current bank have now decided to increase my credit card intrest amount to 21.44%, from 19.44%.
I'm a faily newbie on credit cards (had it for about 2 years), but what you recomend me doing.? My current outstanding credit is only just over £600.

Many thanks in advance. :-)

scottishblondie

Reject the increase. The account will be closed to new spending and you can pay off the remaining balance at the current rate.

Tixy

Do you use the card for new spending at the moment?
Do you need a card / have any other card?

If you want to keep the card open first you could try contacting them to see if they will reconsider keeping the APR at the existing rate, if not consider opting out and closing the card to new spending.

If you need a card you might want to see if you can get accepted for a new card (with a lower APR than 21.44%) before you do decide to opt out of this one.

debtcutter

Agree with Tixy

See if you can get a card with a better rate.

If so, balance transfer from that one to your new one and just close the account

If you can't get another one, consider rejected the increase, bearing in mind you won't be able to spend more on the card

delmar39

I'd go for a new bal transfer 0% card - it would appear that the bal transfer fee would be less that the interest you'll be paying on your existing debt (unless you pay off in full of course).

Timalay

Are the comparison sites worth a look for this sort of thing, or are they a bit of a fix (so to speak)?