Credit Card Interest Rises Gone Too Far - will they reduce?

bengal-stripe

MIDLANDER wrote: »

But then i remembered i pay my debt -

Are you paying your debts or are you just treading water?

If you hover near your limit and are only paying the minimum, or even if you pay more than the minimum but use that money again for purchases, you are considered a risk as something relatively small might trigger you falling off the edge.

Has your indebtedness in the last year (last 5 years) increased, decreased or remained static.

MIDLANDER

BugsyBrowne wrote: »

If your credit history as you say is pretty decent why not just switch to a lower APR card with offers of 0%?

Dont qualify.

As i said snoozing was easy - then found i could no longer get the best deals.

Stopped applying - as that affects your credit score and its a never ending circle.

YorkshireBoy

MIDLANDER wrote: »

I assume these rate rises are targetted?

Lenders take a monthly feed from the CRAs, including CII (consumer indebtedness index) data.

They also look at how you've been managing your accounts with them. That doesn't just mean have you always paid on time. They like 'revolving balances', because it means a steady revenue stream...but this needs to be balanced against risk.

However, there comes a point where they say to themselves "hang on, this guy isn't reducing his debt with us...and isn't reducing it with any of his other lenders either" so then they start to wonder if their capital is at risk (as I said earlier).

How much debt do you have in relation to your income?

YorkshireBoy

MIDLANDER wrote: »

Perhaps you can tell me how its my fault Opus have increased my rates by 16%

See above^^

But they haven't increased them by 16%...they've increased them by 16 percentage points.

The increase is 76%...and that's not far off doubled your debt servicing costs with this lender!

MIDLANDER

bengal-stripe wrote: »

Are you paying your debts or are you just treading water?

If you hover near your limit and are only paying the minimum, or even if you pay more than the minimum but use that money again for purchases, you are considered a risk as something relatively small might trigger you falling off the edge.

Has your indebtedness in the last year (last 5 years) increased, decreased or remained static.

Stayed same. I was paying off - but will defo be treading water with the increases in APR.

However - BNPL itetms with VERY did not used to show unless you failed to pay before the BNPL date. Then they went on your credit file and you paid monthly.

Thats recently changed - it now shows while no payments are due. May seem as though ive suddenly gone on a shopping spree.

cynicalgit_2

Welcome to the world of Capitalism.

MIDLANDER

YorkshireBoy wrote: »

See above^^

But they haven't increased them by 16%...they've increased them by 16 percentage points.

The increase is 76%...and that's not far off doubled your debt servicing costs with this lender!

Maybe thats why its havng a bigger impact than i expected.

I will use that figure in a letter to Opus - thanks.

MIDLANDER

Their letters say "we sometimes raise OR reduce rates".

Seriously - do they just reduce them off their own back?

Can't see that EVER happening.

Sorry if i seem blunt - but if i decide to default etc - then i expect people who love bashing people in debt who don't pay to have a go.

But for now - as i pay my way - i just want to know if it is worth writing. If anyone has ever had success?

Part of me thinks its my right - as a customer - part of me thinks they will consider hammering me even more.

This is bankers we are talking about - the people who brought the WORLD to its feet - but came out of it with not an ounce of shame.

BugsyBrowne

MIDLANDER wrote: »

Dont qualify.

As i said snoozing was easy - then found i could no longer get the best deals.

Stopped applying - as that affects your credit score and its a never ending circle.

Why don't you qualify for a 0% card?

It's normally those who are high risk that don't qualify.

And judging by your CC's going up sparks something is not quite correct.

YorkshireBoy

MIDLANDER wrote: »

Their letters say "we sometimes raise OR reduce rates".

Seriously - do they just reduce them off their own back?

Can't see that EVER happening.

A previous poster reported having their rate cut. I too have had cuts in the past, although not recently. IIRC these were given on cards that were not used/little used though, not those on which I was already carrying debt.

i just want to know if it is worth writing. If anyone has ever had success?

The problem with writing/requesting is that it confirms their view that you're struggling, and may prompt further increases.

Generally banks are allowed to run their businesses as they like, within regulatory framework of course, so even a complaint referred to the FOS won't produce a favourable outcome for you I fear.