Increasing APR

sanabajay

Today I received a letter from the credit card company stating they are upping the APR on my credit card
 They've stated they can do this due to changing circumstances in my credit. Basically saying if my score goes down, I use lots of credit elsewhere etc. 
However. I've been overpaying and reducing debts in preparation to purchase a house in the near future. 
Upon looking online theres not much info thats made clear. However, I'm using less credit, paying lots off and my credit score across all the free and paid services have increased many points over the last 12months. 

Does anyone know if the company can just do this saying that my credit is getting worse when it isn't. Or is this something I need to fight against. 

They have said It won't affect if I pay my remaining balance (which is a little too much to just pay off in The current climate) in 45 days. So it WILL affect. 

[Deleted User]

Yes, they can do it.  You have the right to reject it and pay down the current balance at the current rate, but you'll be unable to use the card.

They're not using your score to make the decision as only you know what that is, but they're using your current circumstances plus their own lending criteria.

Smashingitnow

I have had this. Just tell them you want to keep the old rate. You won't be able to spend anymore on the card but doesn't sound like that is your plan anyway. I agree it rankles a bit but it's nothing to worry about. 

MovingForwards

Ignore your credit score and rating as it's not seen or used by any UK financial institution, it's the credit history they see and use when assessing applications.

Within the T&C's for your CC there will be a clause about being able to alter the apr.

MABLE

I do not really keep track of my APR's on my credit cards because I never leave a balance outstanding. Unless of course it's on a promotional rate.  

cymruchris

I had it once with Aqua - I had been paying off my account in full every month - had never paid them a penny interest (and still haven't)  but they wrote to me with the same guff about putting my APR up. It didn't bother me at the time, and it doesn't bother me now. They've never put it back down again, although I now have more regular cards with much more acceptable APR levels should I ever need an emergency spend. 

MovingForwards

I had it happen with a new day card. The rate went up coincidentally about 4 or 6 weeks after I accepted a CC from my own bank. 

I never carried a balance on the card, paid it off in full each month. The promotions are always balance transfers / cash advances 🙄 rather than anything for purchases. Now I only use my mainstream CC.

Sandtree

MovingForwards said:

Ignore your credit score and rating as it's not seen or used by any UK financial institution, it's the credit history they see and use when assessing applications.

Certainly true for banks, credit card companies etc but not 100% accurate for wider UK financial institutions as some insurers do use the generic credit score for premium setting and/or if to offer monthly instalments.

jonesMUFCforever

OP if you are looking for a mortgage to purchase your property then please do not ask the card to be frozen to keep you on the old APR.
This could lead them to load an 'Arrangement to pay' marker on your credit files - this could seriously damage your application.