aqua card is increasing my APR by 10% !!! Help! 30 May 2015 at 9:36AM edited 30 November -1 at 1:00AM in Credit Cards 30 replies 9.4K views

millymooo

I have held an aqua credit card for a few years now, with a starting limit of £450. They have increased my limit steadily and it is now £4300 with an APR of 38.9%

I have just received a letter from them telling me that on July 1st 2015 they will be increasing my APR by 10% bringing it to 48.9% !
The letter states that if I am not happy with that then they will close my account and set a repayment amount to clear the debt.

I am very angry at this. Surely it cant be legal for them to increase my APR by such a huge amount? is there anything I can do other than cancel my card?

zx81

It's legal. What makes you think it isn't?

You could apply for another card somewhere else. But if you're being repriced to almost 50%, your options may be limited.

David301

do you have a high balance sitting on the card from month to month?

millymooo

Hi David, yes my balance is 3900.

ZX81 hi, I just thought it to be a bit extreme to up it by such a huge amount. Also a friend said it may not be legal.

glentoran99

It's definitely legal and they are giving you a chance to refuse but that will close your card, which is probably a good idea!

chanz4

That's a lot of interest even on current rates

millymooo

I think thats what im going to have to do. Just close it and pay it off. It taken me years to get a healthy credit rating and im not wanting to lose that so i will take the advice of closing the account. Many thanks for your help to everyone of you that answered. much appreciated.

David301

That's why they are doing it then, you look very high risk to them your minimum payments are probably around £160 p/m currently and you are making very little headway with the outstanding debt, The rise in interest is going to cost you about £25 p/m more.

Not nice to think it but they are probably trying to get as much out of you as they can because you are probably heading for a default.

Can you shift the balance to another card? do you have other debts or just this one?

glentoran99

millymooo wrote: »

I think thats what im going to have to do. Just close it and pay it off. It taken me years to get a healthy credit rating and im not wanting to lose that so i will take the advice of closing the account. Many thanks for your help to everyone of you that answered. much appreciated.

If you have a healthy credit rating then why are you paying interest at rate of almost 40% ?

The fact you are near your limit, and they have upped your interest rate is an indicator your credit may not be as healthy as you think it is

David301

glentoran99 wrote: »

If you have a healthy credit rating then why are you paying interest at rate of almost 40% ?

The fact you are near your limit, and they have upped your interest rate is an indicator your credit may not be as healthy as you think it is

I was just thinking that, why pay a couple of thousand a year in interest charges if you can just close it?

Also the payment plan to clear the card is going to be a lot more than your minimum repayments per month

PeacefulWaters

millymooo wrote: »

I have held an aqua credit card for a few years now, with a starting limit of £450. They have increased my limit steadily and it is now £4300 with an APR of 38.9%

I have just received a letter from them telling me that on July 1st 2015 they will be increasing my APR by 10% bringing it to 48.9% !
The letter states that if I am not happy with that then they will close my account and set a repayment amount to clear the debt.

I am very angry at this. Surely it cant be legal for them to increase my APR by such a huge amount? is there anything I can do other than cancel my card?

Pay the higher rate.

Find a cheaper alternative elsewhere. Balance transfer perhaps to a 0% card.

Your credit card has always been a variable rate agreement. This means they have the right to vary the interest rate. It's legal.

my balance is 3900.

Why on earth have you allowed this to happen? You allude to rebuilding your credit history and then seem to have gone on an extended run of spending more than you earn. At first glance it seems insane.

Time to get on top of this and start reducing the balance.