Nationwide increasing credit card interest rate by 50%

WillPS

We had this a fair amount when Lloyds ended their fee waivers on packaged bank accounts a few years back - a few people claimed to have been told they'd have it forever by branch staff but Lloyds had never actually made that commitment.

Nothing lasts forever.

TwiceNightly

Does anyone know if Nationwide reduced the rates when the BofE rate reduction happened recently?

My Lloyds credit cards went down pretty quickly and I can see this in the app, but Nationwide just say "look at your next statement" which is a way off.

Thanks

wiseonesomeofthetime

TwiceNightly said:

Does anyone know if Nationwide reduced the rates when the BofE rate reduction happened recently?

My Lloyds credit cards went down pretty quickly and I can see this in the app, but Nationwide just say "look at your next statement" which is a way off.

Thanks

No emails in my Inbox from Nationwide regarding any change in interest applied to my credit card with them, post-August meeting.

My next statement is issued 13th, so will check that for any reference, once visible.

TwiceNightly

Finally got through to someone, they're not going to be dropping their rates (like the banks did) any time soon.

ManyWays

Some credit cards have their interest rate fixed to a base rate, for example some Lloyds cards terms and condititions  say "Your standard simple interest rates (see table above) will automatically move up and down in line with changes to the Bank of England Base Rate." If a card rate edged up slowly in line with base rate changes you would expect it now to drop in line.

Others dont. You have the right to reject any changes on a card where the rate isnt fixed to base rate by closing the account and paying off the balance at the old rate. 

If there was a very large move in a card rate, it probably doesnt have this term and wont go down slowly as base rates fall. 

MABLE

Just had a letter from Nationwide bs advising my rate is increasing from 15.9 to 20.9%.  Not a problem as I clear balance every month.  However my other providers have recently advised me of interest reductions.

grumpy_codger

MABLE said:

Just had a letter from Nationwide bs advising my rate is increasing ...

So did I. And I'm certainly not a 'risky' customer.

MABLE

grumpy_codger said:

MABLE said:

Just had a letter from Nationwide bs advising my rate is increasing ...

So did I. And I'm certainly not a 'risky' customer.

Same here.  Also had my mortgage with them and paid it off 12 years early. 

Olenna

MABLE said:

Just had a letter from Nationwide bs advising my rate is increasing from 15.9 to 20.9%.  Not a problem as I clear balance every month.  However my other providers have recently advised me of interest reductions.

Their on-sale credit cards have a representative rate of 24.9% APR - your rate is 4% lower than newbies. 
They could have simply opted to harmonise the rates or move you across to the on-sale product. 

ManyWays

Anyone seeing a large increase in their rates who has a balance has the option to decline the increase, stay on the old rate and continue to may the balance off monthly This stops you using the card, but if you are trying to clear it this is a no-brainer, and it doesnt harm your credit score.