halifax putting credit card interest rate up

slopemaster

Had a letter from Halifax to say they are putting up my interest rate (Halifax Clarity card) because of "changes in my financial circumstances". However, nothing has changed.

Now heres the thing - I always pay the balance in full every month, so the only time I pay any interest is if I draw cash abroad. So, in a way I don't need to bother. But it makes me feel both annoyed and concerned.

I am trying to check Noddle, but I cannot get into it as I am currently abroad - cannot get to the site for the Callcredit statutory report either. Now trying to do it via a VPN.

If I phone Halifax, is there any chance at all that they will tell me what the supposed problem is?

[Deleted User]

No.

They will have looked at you as part of a wider group - eg 'people like you are now considered higher risk'.

Don't take it personally and if you're not paying interest, don't worry about it.

SuperPikachu

Mine always gets increased because I pay it off in full on time or early every month so they never make any money from me.

Don't worry about it!

A4445

That would annoy me. I recommend the Creation Everyday card for use abroad it's 0% on forex and the rate is 12.9% so cheaper on cash advances abroad. I'd get the new card and then tell Halifax to stuff their card lol :rotfl::rotfl:

slopemaster

Tempting, but I do find it useful and don't want to cut off my nose to spite my face

jonesMUFCforever

My card is charged base rate plus x% so with base rate going up I expect my interest to go up too.

Ben8282

slopemaster wrote: »

Had a letter from Halifax to say they are putting up my interest rate (Halifax Clarity card) because of "changes in my financial circumstances". However, nothing has changed.

Now heres the thing - I always pay the balance in full every month, so the only time I pay any interest is if I draw cash abroad. So, in a way I don't need to bother. But it makes me feel both annoyed and concerned.

I am trying to check Noddle, but I cannot get into it as I am currently abroad - cannot get to the site for the Callcredit statutory report either. Now trying to do it via a VPN.

If I phone Halifax, is there any chance at all that they will tell me what the supposed problem is?

This may be an attempt by Halifax to sell you an Experian credit monitoring product. When you call to ask the reason, you will be told that there is 'something' on your credit files and be offered some sort of credit score/credit report monitoring product.
When you tell them that there has been NO change to your financial circumstances and continue to insist that this is the case and make it clear you do not need their credit score product and do not need to check your credit files because you have just checked them and while there is obviously something on them (they are not blank) there is nothing untoward on them.
They may say they do not need to give a reason. Reply that yes you know that but they have given a reason and the reason they have given is false.
They will go away, come back and say that they are not going to increase the interest rate after all.
Or at least that's the way it went when Lloyds/TSB sent me a similar letter a few years ago.
Of course, if you do pay in full every month, then perhaps as you don't pay interest it may not be worth bothering.

PS If you KNOW that there is no problem (ie you know that you have paid everything on time etc), then don't spend the next several days searching for a problem which DOES NOT EXIST. If you hadn't paid something you would be aware of it yourself by now.

PeacefulWaters

Ben8282 wrote: »

This may be an attempt by Halifax to sell you an Experian credit monitoring product. When you call to ask the reason, you will be told that there is 'something' on your credit files and be offered some sort od credit score/credit report monitoring product.

They offer this for free anyway. Search for halifaxcreditchecker.

When you tell them that there has been NO change to your financial circumstances and continue to insist that this is the case and make it clear you do not need their credit score product and do not nood to check your credit files because you have just checked them and while there is obviously something on them (they are not blank) there is nothing untoward on them.

They may say they do not need to give a reason. Reply that yes you know that but they have given a reason and the reason they have given is false.
They will go away, come back and say that they are not going to increase the interest rate after all.
Of course, if you do pay in full every month, then perhaps as you don't pay interest it may not be worth bothering.

As the information on credit files changes regularly, they will be within the bounds of reasonability to leave things exactly as they are.

slopemaster

I have got my statutory report and tracked down the cause.
ONE late payment in August, when I closed down a card and cancelled the direct debit too early. Now shown as sttled, but this is the only thing that has changed, so it must be the cause.

It didn't stop Barclaycard offering me a new card, but it was enough for Halifax to put up my interest rate immediately.

I still feel a bit miffed, but its a salutory experience.

(And now I have the Barclaycard I will not pay a penny in interest even when I draw cash abroad. So Halifax will not make even the tiny amount out of me that they used to. Ha!)

PeacefulWaters

slopemaster wrote: »

(And now I have the Barclaycard I will not pay a penny in interest even when I draw cash abroad. So Halifax will not make even the tiny amount out of me that they used to. Ha!)

Nor will they have to pay a fee higher than the interest earned to an ATM provider.

MABLE

slopemaster wrote: »

Had a letter from Halifax to say they are putting up my interest rate (Halifax Clarity card) because of "changes in my financial circumstances". However, nothing has changed.

Now heres the thing - I always pay the balance in full every month, so the only time I pay any interest is if I draw cash abroad. So, in a way I don't need to bother. But it makes me feel both annoyed and concerned.

I am trying to check Noddle, but I cannot get into it as I am currently abroad - cannot get to the site for the Callcredit statutory report either. Now trying to do it via a VPN.

If I phone Halifax, is there any chance at all that they will tell me what the supposed problem is?

After reading your post I checked the apr on my Halifax Clarify card and it is 25.9 percent but see my apr on my Lloyds Bank card is only 11.8 percent. However I always pay off balance every month.

But today I was shocked to see on my Cahoot cc I was charged interest of £2.19. The reason being I made an error and underpaid last month by 0.50p. I spoke to their customer service and they agreed to refund the interest but went to great lengths to say this is a once in a lifetime goodwill payment.

Fair enough I thought as I was the only who messed up and not them.