Jump to content
House Price Crash Forum
Sign in to follow this  
wilko

Credit Card Interest Rate Change

Recommended Posts

I've a stagnant Capital One credit card that I don't use and has a zero balance. I don't even get statements anymore.

However, I received a letter from capital one saying that the APR is being increased to 35% from March onwards. Thirty Five percent!

Here's an extract:

"Due to changes in the credit environment, it's now costing us more to lend. Because of this we have reviewed our customer accounts and are increasing the standard interest rates in your agreement to 34.94% p.a. variable for purchases, 34.94% p.a. variable for balance transfers and 34.94% p.a. for cash withdrawals."

It's just served as a reminder that I need to close that account. Is there a legal maximum APR these jokers can charge?

Share this post


Link to post
Share on other sites
I've a stagnant Capital One credit card that I don't use and has a zero balance. I don't even get statements anymore.

However, I received a letter from capital one saying that the APR is being increased to 35% from March onwards. Thirty Five percent!

Here's an extract:

"Due to changes in the credit environment, it's now costing us more to lend. Because of this we have reviewed our customer accounts and are increasing the standard interest rates in your agreement to 34.94% p.a. variable for purchases, 34.94% p.a. variable for balance transfers and 34.94% p.a. for cash withdrawals."

It's just served as a reminder that I need to close that account. Is there a legal maximum APR these jokers can charge?

The rate on our British Airways Amex went up to 46% (from 35%).

Just as well we pay it all off each month - only use it for the airmiles.

Share this post


Link to post
Share on other sites

Meep. That's almost 50% Are they having a laugh? I thought that interest rates were going down, so surely it's cheaper for us to borrow (should we need to). Must check my credit card then and make sure they haven't snuck something past in their general bumf they send out regularly.

Share this post


Link to post
Share on other sites

Assuming you have a Amex PremierPlus (as I do), they do advertise an APR of 46% but the actual interest rate applied to purchase is "only" 19.9%. The reason they have to show an APR of 46% is that this is based on an average balance of £1,000 (I think) and includes all fees. As you pay £150 per year for this card it inflates their advertised APR.

Similarly with the Natwest Black credit card, this is advertised at more than 50% due to the c£275 fees you need to pay.

Share this post


Link to post
Share on other sites
Assuming you have a Amex PremierPlus (as I do), they do advertise an APR of 46% but the actual interest rate applied to purchase is "only" 19.9%. The reason they have to show an APR of 46% is that this is based on an average balance of £1,000 (I think) and includes all fees. As you pay £150 per year for this card it inflates their advertised APR.

Similarly with the Natwest Black credit card, this is advertised at more than 50% due to the c£275 fees you need to pay.

Is it worth paying £150/yr? What benefits does this card have over a "standard" credit card?

Share this post


Link to post
Share on other sites
Is it worth paying £150/yr? What benefits does this card have over a "standard" credit card?

Depends on what you're looking for, you get 1.5 BA miles for each £ spent and 3 miles for each spent with BA. If you spend £10k on it in a year and use BA miles to "purchase" a flight you get another ticket free.

I'm getting married in April and with the Airmiles I've racked up with this and flights with work I managed to get 2 return tickets to S Africa for our honeymoon just using these miles. So in my view it is v beneficial using the card.

And as I clear the card each month the interest rate charged isn't really an issue.

Share this post


Link to post
Share on other sites
I've a stagnant Capital One credit card that I don't use and has a zero balance. I don't even get statements anymore.

However, I received a letter from capital one saying that the APR is being increased to 35% from March onwards. Thirty Five percent!

Here's an extract:

"Due to changes in the credit environment, it's now costing us more to lend. Because of this we have reviewed our customer accounts and are increasing the standard interest rates in your agreement to 34.94% p.a. variable for purchases, 34.94% p.a. variable for balance transfers and 34.94% p.a. for cash withdrawals."

It's just served as a reminder that I need to close that account. Is there a legal maximum APR these jokers can charge?

I guess they are pricing in the risk of default! You'd have to be pretty desperate to run up a balance thats an insane amount of interest.

Share this post


Link to post
Share on other sites
I've a stagnant Capital One credit card that I don't use and has a zero balance. I don't even get statements anymore.

However, I received a letter from capital one saying that the APR is being increased to 35% from March onwards. Thirty Five percent!

Here's an extract:

"Due to changes in the credit environment, it's now costing us more to lend. Because of this we have reviewed our customer accounts and are increasing the standard interest rates in your agreement to 34.94% p.a. variable for purchases, 34.94% p.a. variable for balance transfers and 34.94% p.a. for cash withdrawals."

It's just served as a reminder that I need to close that account. Is there a legal maximum APR these jokers can charge?

I have received a similar letter (although mine will be 28.88% variable for purchases and balance transfers). :angry: Last night I wrote a letter and cut up my credit card which I shall return in the post in due course.

I also have an Egg credit card but this is currently 16.9% variable....for the moment anyway. :unsure:

Edited by MattW

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.