advice on HSBC credit card please...

coolsolution

Hi there. I had this HSBC credit card on 2005 with a rate of 15.9% . in 2007 i spend 1300 out of 1500 limit in one month and before that the balance was 0 because i always repaid in full.

After paying too much interst on it for 3-4 months ( it was a cash withdrawl) i decided to do a balance transfer.SO i applied for another card and got accepted and immidiately i transfered the balance. now after doing that within 2 months i got a letter from HSBC credit card saying my interest rate has gone up 15.9% to 24.9% :mad:

first i thought may be they are doing it to lots of people.Then i asked my friends who had same card.They said they havent got this kind of letter.

I still have that card with 0 balance in it.If i cancel it will it effect my credit score? can i apply later to HSBC credit card again?


Thanks in advance.

Trying_to_be_good

You can cancel that card and apply for another, but somewhere on the site there's advice to not apply for a second new card within three months of an application.

Obviously, if you pay the balance off in full each month now, it doesn't matte rwhat the interest rate is. You could still go for a new card that gives you a reward instead, though, such as cash back.