Rant: My credit card company just raised my rate without telling me

I got my statement last week and noticed my APR jumped from 18% to 24% on a card I've had for 7 years. No late payments, no missed due dates, nothing wrong on my end. I called them up and they said it was because of a change in my credit report - but when I checked, my score actually went up 12 points. They couldn't even explain it to me clearly. I'm thinking about transferring my balance to a new card with a lower rate. Has anyone else had a big rate hike like this out of nowhere?

2 comments

2 Comments

taylor.susan13d ago

Wait, your score went up and they still raised your rate? That doesn't make any sense at all. I'd be furious if I were you. I've seen stories like this before and it seems like some companies just look for any excuse to hike rates on long-time customers. You've been loyal for 7 years with no late payments and they treat you like this. I think you're right to look into transferring your balance to a new card. Just make sure you read the fine print on those intro offers because they sometimes have hidden fees or the rate jumps after a year.

seth_martinez2113d ago

Totally agree @taylor.susan, this exact same thing happened to me with my auto insurance a couple years back (State Farm, if you can believe it). My credit score jumped like 40 points and my rate somehow went up $15 a month the next billing cycle. I called and they gave me some nonsense about "risk model adjustments" which is basically code for "we want more money." It really makes you wonder if loyalty is even worth anything these days, you know? I ended up switching to a different company and saved almost $200 a year.