NatWest credit card interest rate rises

cymruchris

Deleted_User said:

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. 

Agreed - the emphasis to the poster that originally quoted me is that it's very possible that some of their own behaviours may be influencing their recent interest rate rise (unlike the OP of this thread).

Mandy1Kay

Thank you so much for the replies. I'm not totally sure I have a firm grasp of how credit card providers function -  but I will keep working on it.

Just for clarification:

The letter I have received clearly states that my interest rate is rising due to increasing costs associated with credit card service provision. There has been no suggestion that this raise is linked to my behaviour in any way and I would be extremely surprised if this were the case.

I have been assured twice during phone calls to the customer service helpline that this raise will apply to all customers except for those with protected characteristics (?) yet I can find no information about this on the website and am unable to get this information in writing. 

A 2.5% interest rate rise seems to be quite significant to me and as I have been repeatedly advised that this is not personal to me, I would expect to be able to find out more about this but I can find no information anywhere.

I do not wish to change my bank at this point in time as having recently bought a new flat with all the associated credit checks (mortgage, internet provider...) I really don't want to be applying for a new credit card at the moment, so I'll be staying put, I just want to understand things a bit better than I do - I'll keep working on it. Thanks again for taking the time to reply.

cymruchris

Mandy1Kay said:

There has been no suggestion that this raise is linked to my behaviour in any way and I would be extremely surprised if this were the case.
.

Just for clarification as well - my comments were directed towards a forum regular that had quoted me - and how their behaviour may be influencing their APR changes  

If you've actually bought the flat - are in - mortgage done and payments started - services all in place - and your new address on all of your credit reference agency reports, with all your accounts being updated as well, you're in a place where you can use eligibility checkers to see what other cards you might be able to get. If you do have a look - use the eligibility checkers on card providers websites - don't use comparison sites - as they both use the data in different ways, and the banks themselves will give the more accurate results. 

JamesPeter

I recevied a letter yesterday saying my Natwest Rewards CC interest rate was rising from 17.436% to 19.956% 'due to an increase in the cots to service your credit card'.  It is the first increase since I have had the card -  8 years plus.

It is still a lot less than their advertised 'Representative Rate' on their website - 26.8%

https://www.natwest.com/credit-cards/reward-credit-card.html

I am not really bothered about the increase as I clear the account every month and have done so since I got the card.

I make more from the 'Rewards' than they have ever made out of me!

Dandytf

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.

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) 

Enjoying credit facilities

Thanks

[Deleted User]

JamesPeter said:

I make more from the 'Rewards' than they have ever made out of me!

Perhaps not directly out of you, but they still make more from your account than you do.