If you have a credit card, check your next statement carefully. Millions of people are discovering a big change on their first statements of 2009: an unexpected jump in their interest rate, or a new monthly fee.
And don't think good credit means you're immune.
Good Credit, Bad NewsMike Nelson pays all his bills on time. So he was stunned to receive a letter telling him that
AT&T Universal was changing the terms of his credit card.... raising his interest rate to almost 15%!
Mike says "it was going up to
14.99%. I had been locked into 6.9% percent."
Result: His $37 monthly interest payment soared to $90.
More and More Cards Hiking RatesBut banks -- struggling to survive in this credit crunch -- are raising interest rates on even their best customers, according to a recent report in USA Today.
The report says
Chase Bank is going a step further:
adding a $10 monthly fee to many Chase cards.
Mike, though, refused to accept the rate hike.....so he called, and called again, and says he finally reached someone who agreed to lower his rate.
He told everyone he reached "that's crazy, you have just tripled my interest rate, and I have paid all my bills on time."
If this Happens to You....My advice?
- Don't simply accept a rate hike or monthly fee you never agreed to.
- But resist the initial urge to cancel the card: that can hurt your credit score.
- Instead, call and complain, and work your way up the supervisor chain.
- Tell them you are looking at other cards with lower rates...then do that.
Mike Nelson's final piece of advice: "don't take no for an answer. Be persistent."
So if this happens to you, call and call again. Don't accept the first "no" you hear.
If you can give a good reason why you don't deserve a rate hike --such as on time payments each month -- you may get it reversed, so you don't waste your money. I'm John Matarese.
