NatWest credit card interest rate rises

Mandy1Kay

I am very confused about something and just wonder if anybody else is having a similar experience.

I have recently received a letter from NatWest saying that my credit card interest rate is going up by 2.5% This is quite a significant rise which is apparently due to rising costs of managing credit cards.

I have been advised by phone line operatives that this increase is universal and will affect all NatWest credit card customers except for those with protected characteristics (What does this even mean?) and yet I can find no mention of this anywhere other than on a random link that cannot be accessed by the website but was apparently sent to anybody who received the same letter as I did.

I find this very strange. Surely such a significant increase to credit card interest rates by a major bank would be mentioned somewhere, like their website? This makes me think it is not something affecting all customers. Then again, how could a rate rise linked to rising costs only be paid by some customers? That really wouldn't seem right.

l have an excellent credit rating and there is no suggestion from anybody I have spoken to at the bank that this is anything to do with me but neither can anybody explain why their is no publicly available information either.

I am just totally confused and would appreciate knowing if anybody else is having a similar experience,  or if there are NatWest Customers out there who have heard nothing of a credit card interest rate rise. 

Many thanks

Marchitiello

Credit Card companies do not have universal rates applying to all account and only advertise typical/average rates given to a larger proportion of people. Within that,  they may increase/decrease interest rates to all accounts (as they may do to individual accounts) but it may not be exactly by the same amount (e.g. your own  rate may have gone from 25% to 27.5% but for someone else that started at 23% the increase may have been to 25.3% so you both had internet changing by the same proportion but resulting in different percentage points. 

are you carrying a balance and paying an interest? Can you not look at balance transfer cards that will allow to reduce (per paga to zero) the interest rate for a period of time? If you always pay in full and never carry a balance then any increase/decrease to the interest rate is a completely  irrelevant point 

Mandy1Kay

Thank you for your reply. I generally pay off in full but sometimes have a slight balance. I just want to understand what I'm being told and it doesn't make sense to me.

cymruchris

Not Natwest - but one of my cards - Zopa - someone mentioned quite a few weeks or so ago that they'd had a communication to say their rate was going up due to the change in the bank of england base rate, and was also wondering whether it affected everyone - but I heard nothing at the time - until about two weeks ago when I was also told my rate was going up. So it may be that not everyone will get the rate increase at exactly the same time. Interest rates in general are going up though, as the bank of england are raising the base rate (and it's about to go up again I think it's tomorrow)

Nebulous2

My NatWest card hasn't been used for some time. I received a letter, but didn't pay much attention to it. 

If they are contacting everyone, and are giving a decent notice period, the mailshot could be spread out, with some people having already received it and others not. 

Raising rates is common. At least one of my cards changed their conditions a while ago, so that the interest rate goes up every time there is a Bank of England base rate increase. 

MovingForwards

I had the letter. It's the first change since BOE started increasing the base rate. 

My other CC (different financial institution) has been increasing each time BOE BR changed.

Mandy1Kay

Thank you :-) that's useful to know. 

Dandytf

cymruchris said:

Not Natwest - but one of my cards - Zopa - someone mentioned quite a few weeks or so ago that they'd had a communication to say their rate was going up due to the change in the bank of england base rate,  Interest rates in general are going up though, as the bank of england are raising the base rate (and it's about to go up again I think it's tomorrow)

Thankfully you finally understand why various card providers are informing various card holders of boe linked rise in rates.

cymruchris

Dandytf said:

cymruchris said:

Not Natwest - but one of my cards - Zopa - someone mentioned quite a few weeks or so ago that they'd had a communication to say their rate was going up due to the change in the bank of england base rate,  Interest rates in general are going up though, as the bank of england are raising the base rate (and it's about to go up again I think it's tomorrow)

Thankfully you finally understand why various card providers are informing various card holders of boe linked rise in rates.

There are two reasons for rate rises - one is Bank of England base rates where everyone’s card goes up (although as outlined it can be staggered in implementation) - the other is customer behaviour and their risk profile. Don’t get them mixed up, or blame one for the other.

If your rate is rising because of worldwide factors beyond your control - that affects everyone - but if it’s rising because of your own spending patterns/debt levels - that’s something within your scope of control.

The card i mentioned above was my zopa that is due to increase from 14.9 percent to I think it’s 15.4 percent, but in my case I don’t mind as I always pay the balance in full.

You appear to be increasing your balances and incurring interest from a position where you were previously clear of debt. It’s a different kettle of fish. (And your previous post wasn’t the one I referred to above) 

[Deleted User]

I had the same but it's moot as I was using as a BT offer but have since closed it

Note if you do not pay the statement balance in full you pay interest on the whole balance

[Deleted User]

cymruchris said:

Dandytf said:

cymruchris said:

Not Natwest - but one of my cards - Zopa - someone mentioned quite a few weeks or so ago that they'd had a communication to say their rate was going up due to the change in the bank of england base rate,  Interest rates in general are going up though, as the bank of england are raising the base rate (and it's about to go up again I think it's tomorrow)

Thankfully you finally understand why various card providers are informing various card holders of boe linked rise in rates.

There are two reasons for rate rises - one is Bank of England base rates where everyone’s card goes up (although as outlined it can be staggered in implementation) - the other is customer behaviour and their risk profile. Don’t get them mixed up, or blame one for the other.

If your rate is rising because of worldwide factors beyond your control - that affects everyone - but if it’s rising because of your own spending patterns/debt levels - that’s something within your scope of control.

The card i mentioned above was my zopa that is due to increase from 14.9 percent to I think it’s 15.4 percent, but in my case I don’t mind as I always pay the balance in full.

You appear to be increasing your balances and incurring interest from a position where you were previously clear of debt. It’s a different kettle of fish. (And your previous post wasn’t the one I referred to above) 

There can be multiple reasons not just risk or base rate movement; one can simply be to make more money from the portfolio. The Natwest cards aren't defined as linked to the BOE base rate (i.e BOE plus x%) so this is just a generic excuse.