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Interest rate increase what to do?

in Credit cards
2 replies 273 views
Mr0805Mr0805 Forumite
1 Post
Newbie
Hi all, 
I have a card with vanquis with an Apr of 24.7% I've received a letter today that they're increasing it to 29.5%, I have spoken with them and they said I can either accept it or stay on my current APR but that I'd essentially be closing my account with them, I've been with them for over 2 years, never missed a payment date and always make more than the minimum payment, I've looked at 0% balance transfer cards but the ones I'm pre approved for don't offer enough limit to move my 3k balance, what can I do? 

Replies

  • edited 25 February 2021 at 6:50PM
    moleratmolerat Forumite
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    edited 25 February 2021 at 6:50PM
    You don't really have many options.  Are you currently still using the card and racking up more interest ?
    If you can get a 0% card anything is better than nothing, transfer what you can. 
  • FarfetchFarfetch Forumite
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    They are allowed to increase the rate if they want, as per their email you can reject it and pay the card off. You should be paying the card off in full every month, you are spending lots on interest and little on balance even if you are paying over the minimum.
    If you applied for a BT card, the limit might well be an estimate, not confirmed until your application goes through - but that said, the fact you are not clearing the card regularly does impact your chances of getting a better card. 
    Apply for a BT card with someone like Barclaycard if you can, they often seem to give good limits and transfer whatever you can, pay the minimum on that while hitting the Vanquis card with as much as you can - with less balance you will be paying off more capital and less interest then you can work on the BT card

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


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