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HomeCredit ForumLoan Management

Can a credit card company change the rate on a loan?

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Dadummy



Joined: 15 Nov 2007
Dadummy's page
Posts: 638



32 Magic Points
Subject: Can a credit card company change the rate on a loan?
 
 Posted on Mon Dec 31, 2007 3:01 am  
if a credit card advertises a low rate for the life of the loan can they change it at a later date?

i get letters all the time but they say in the fine print they have the right to change the policy without notice, does that mean they can charge a higher rate on the previous loan for life. does anyone know which card is actually better to carry i see too much fine print in all of them.
 
SunDevilsFan



Joined: 09 Nov 2007
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Posts: 194
Location: Sunny Arizona


6604 Magic Points
 
 Posted on Mon Dec 31, 2007 3:36 am  
Yes, they can...

It's interesting you mentioned this. I just read an add for a credit card I just applied for and got that has 0% interest until July 2008 on any purchases and transfers.

The fine print indicated if I was late one day past the due date, then the rate would jump from 0% to whatever the current one is at that given moment.

Hope this helps.....

Sun
 
anthony

anthony

Joined: 31 Jul 2006
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9628 Magic Points
 
 Posted on Mon Dec 31, 2007 5:54 am  
Well Dadummy,

It is okay for them to change the rates. First and foremost this happens based on the market scenario. I hope you have seen the mortgage industry crash only a few days ago? So these are incidents which lead to major changes and it cannot be stopped.
The rate drops or increases as per market requirement..after all no company can run at a loss is it?
_________________
Anthony..

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
 
goodnatured



Joined: 03 Nov 2007
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Posts: 2591



4325 Magic Points
 
 Posted on Mon Dec 31, 2007 11:58 am  
They usually start out with a low percentage in the beginning and then jump to a higher rate later in the game, like 6 months later, after you have transferred all your balances to that account. It is common for credit card companies to pull this over on their new customers, especially since they offer the great incentive of 0% in the beginning, if you are going to transfer balances over during this time, you should try to pay off as much as possible during the 0% time frame.
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
MCasper



Joined: 31 Dec 2007
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Posts: 25
Location: Pennsylvania


1239 Magic Points
 
 Posted on Mon Dec 31, 2007 5:43 pm  
It has recently come to light that creditors were raising interest rates as much as 1% every 3 months to those even paying timely. There's no tricks to it, they do whatever they want with interest rates.
 
goodnatured



Joined: 03 Nov 2007
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Posts: 2591



4325 Magic Points
 
 Posted on Tue Jan 01, 2008 3:27 pm  
I think I would be paying the card off and getting rid of it if it were me in this situation. We had an earlier thread about them raising there rates, MCasper is there a reference source that we can go read on this some where, can you post it please, I would be interested in taking a further look at this information. thanks
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
MCasper



Joined: 31 Dec 2007
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Posts: 25
Location: Pennsylvania


1239 Magic Points
 
 Posted on Wed Jan 02, 2008 3:05 pm  
I'm in the office now, I'll try to dig up that link when I get a chance throughout the day; if not I've got the link saved at home.
 
MCasper



Joined: 31 Dec 2007
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Posts: 25
Location: Pennsylvania


1239 Magic Points
 
 Posted on Wed Jan 02, 2008 3:16 pm  
"Citigroup, the nation's largest financial institution, announced last week that it was eliminating the practice of so-called universal default — raising interest rates for card customers because of their failure to pay other creditors on time."

"Credit card issuers raise customers' rates and fees, for example, when they believe it is warranted by conditions in the financial markets. But under Citigroup's new policy, rates and fees will be increased before a card expires only if the customer pays late, exceeds his credit limit or pays with a check that bounces. Or if the rate is linked to the prime interest rate, it would rise or fall in tandem."

http://www.usatoday.com/news/washington/2007-03-07-credit-hearing_N.ht m

Not the link I originally had, but still a reference none the less.
_________________
Michael Casper
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goodnatured



Joined: 03 Nov 2007
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Posts: 2591



4325 Magic Points
 
 Posted on Thu Jan 03, 2008 4:22 am  
Thanks for the information, I am going to look into it more now, thanks for following up with this thread, have a great day.
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
Laura

Laura

Joined: 21 Jun 2007
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34316 Magic Points
 
 Posted on Thu Jan 03, 2008 4:53 am  
Hello Mr. Casper,

It is a pleasure having you here on the forums. The link is pretty informative. Hope to see you around. Smile
_________________
Regards,
Laura.
 
SunDevilsFan



Joined: 09 Nov 2007
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Posts: 194
Location: Sunny Arizona


6604 Magic Points
 
 Posted on Fri Jan 04, 2008 5:45 am  
Awesome read!!! Thanks for bringing that to out attention... I am glad the Senate had a hearing.... Now, I am waiting for them to actually do something...
 
erb1953



Joined: 31 Dec 2007
erb1953's page
Posts: 587



1368 Magic Points
 
 Posted on Sun Jan 06, 2008 1:33 pm  
I don't have any cards but I feel for those who do and get stuck in this trap of them raising rates and doing what ever they please. It is about time the government is getting in here and trying to do something about it, they have their nose in everything else, why would they leave this alone?
 
goodnatured



Joined: 03 Nov 2007
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Posts: 2591



4325 Magic Points
 
 Posted on Sun Jan 06, 2008 5:39 pm  
This is a great article and what powerful testimony coming first hand from someone who represents millions living through the same credit card abuse. This is just another corporate way of taken advantage of the little man, I hope that they do put something in place to take care of these monsters, they affect so many. I think they are right when they put them right up there with the predatory lenders, they are using the same tactics and practices, what happen to the day when you could hear the name of a company and think, trust, good customer service and other thoughts in favor of the customer. Anymore all you hear is the horror stories of how people are getting screwed.
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!
 
Dadummy



Joined: 15 Nov 2007
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Posts: 638



32 Magic Points
 
 Posted on Sat Jan 12, 2008 5:27 pm  
im getting rid of my credit cards one by one but it seems unfair they can lie to you like this my payments are never late. i had this problem with sears a long while back got rid of them and now im doing the same with credit cards. i plan on saveing some money so i wont need this in the future. my kids laugh at me when i say im broke they say im the only one they know who has money in the bank and say im broke but in reality i am ,the few bucks i have saved is for emergancys so i dont have to go back in debt.
 
SunDevilsFan



Joined: 09 Nov 2007
SunDevilsFan's page
Posts: 194
Location: Sunny Arizona


6604 Magic Points
 
 Posted on Sat Jan 12, 2008 5:35 pm  
nothing wrong with having money stashed for a rainy day, dadummy....
 
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