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MBNA, Lloyds and Halifax credit card increasing std interest rate.

MABLE
MABLE Posts: 4,249 Forumite
Part of the Furniture 1,000 Posts Name Dropper
in Credit cards

I have all three credit card issued by the above brands and always pay off balance so never pay any interest charges. However in the last few days they have advised me the std rate is being increased from 22 to 25 percent effective from 14 May.

However they have given me the chance to swap credit cards and the std apr offered is 12.9 percent and they have said it is pre approved on their website.

I am at a lost why increase my std rates only to offer me the more advantage rate. Also get good money and balance transfer rates from all three brands every month.

Comments

  • la531983
    la531983 Posts: 4,024 Forumite
    1,000 Posts Second Anniversary Name Dropper

    The interest rate could be 1000%, makes no odds if you pay it off each month

  • Nasqueron
    Nasqueron Posts: 11,420 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper

    Could be the old card is a standard and the new is a prime card with lower rates, annoying they won't show you a list on the site only what you are eligible for!

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • ManyWays
    ManyWays Posts: 2,251 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper

    I never think it is worth your time to try to work out why a lender is doing something daft that is in your favour. I suggest you grab the offer.

  • EarthBoy
    EarthBoy Posts: 3,378 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    The 12.9% card sounds like the Lloyds Ultra Card.

  • Maegi
    Maegi Posts: 105 Forumite
    100 Posts Name Dropper Photogenic
    edited 4 March at 10:28PM
    https://forums.moneysavingexpert.com/discussion/comment/81908314#Comment_81908314

    BOS and Halifax both have a Platinum product that has a standard APR of 12.9%; so likely MBNA too.

    It's inferior to the Ultra product as doesn't offer cashback and is not free to use abroad.

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