Help: credit card company keeps raising my interest rate?

Question

I have a Washington Mutual card and they sent me a change in terms on my March statement (which of my own fault, I missed b/c I always pay attention to the online statement). Anyhow, I was told that I was high risk and that they were raising my APR to 29.99 at a variable rate and I only had till May to opt out. However, since I missed this, my rate is in fact increasing. I have not used the card since October 2007. I have never been late on my payments and always pay at least 40 over the minimum. On my most recent statement my rate went higher again since it's variable, therefore resulting in a higher finance charge. I was also told that if I closed the account that the interest rate would still be variable. Is there anything I can do?

Answer 1

Pay off and close the account, and open a different one. Check the rates of different banks online.

Answer 2

Contact your state Attorny Generals office. Under the law of most states they can only raise so much over prime. If you have been late on a different credit account they can use that as an excuse they will say it shows irresponsibility on your part. If you have good credit apply for a zero interest on balance transfers, or go to a traditional bank and get a personel loan the interest may be 15% but that is better than 30%

Answer 3

In the current economy, more credit card companies are taking closer looks at current accounts.  I bet this account is nearly maxed out and those $40 over the minimum payments probably haven't put much of a dent in bringing down that balance.

At this point, your best bet is to squeeze your budget real tight and throw every penny you can at that debt.  If you have another credit card with lower interest that you can transfer the balance to, you may want to do that.

Once you have paid this card off completely, do not close the account.  You will be amazed how quickly they will be offering you all sorts of special interest rates.

Answer 4

It sounds like they pulled a status copy of your credit report and found something they didn't like.  Your chance to object is past.  Find a new card and do a balance transfer.

Answer 5

Investigate every other source which issues credit cards. Find the one which best suits your needs and charges the least in interest. Start at their minimum risk amount and make sure you never are late with a payment. In the event you wish a larger line of credit ask. You can get better than 30 % from the Mafia.Use your credit card only when necessary and learn to use what we knew , as cash. That is still legal tender and may put you on the road to better money management. Sounds as if this is not one of your strong points.