Credt Card rant, and PSA

[gategrrl]

PSA: If you have a credit card, and you get something in the mail that says it has to do with your card account OPEN IT! And then READ IT!

It's well-known all the dirty tricks that card companies are using on their customers, like raising their interest rates if you're late on your other bills, or shop at Wal-mart [on your card] and so forth.

The Guy just received a note in the mail from Capital One that they're going to raise his rates in one year (I think-I'm unclear about this because of the way they've phrased everything) from his current low rate to one that's over double what he's paying now. That's a rate going up to "equal to 17.9%, and will vary depending on the Prime Rate. Yippee. We're going to try and pay down his balance before next January and get rid of it before the rates shoot up.

For many card holders, they don't get that amount of warning. Some, the rates shoot up from one statement to the next. I know that most of my flist is VERY responsible and checks that stuff--but double-check it, and read EVERYthing that comes in the mail. The card companies are scrambling and they're making their customers pay for it in every pseudo legal way they can get away with.

Comments

[aostara.livejournal.com]

Also - since this crap is *technically* legal - PAY OFF everything you can as soon as you can. These kind of tricks are only going to get worse, after all. Other than my home mortgage, I'm trying really to keep everything either "save first and pay cash" or "charge it, but pay off the whole balance before they start charging interest". Those "no interest for 90 days" cards (like at Home Depot) help a lot with that!

[gategrrl.livejournal.com]

Yeah. So far, over the past few years, we've paid off two cars (one last month! yay!), and a student loan that had been around since the 80s (don't ask). We only have two CCards left now, and the two mortgages (again, don't ask about the second one).

I would dearly love to have zero balances on both cards (but not cancel them and screw up our points). The Guy finally realized how hard it was paying off his card when he keeps ADDING stuff to it, so he's barely used it for the past two months. What a relief. I'm rolling our old car payment into his card now, starting next month. That should help a lot.

[aostara.livejournal.com]

Have you tried the trick of putting the credit cards in a small block of ice in the freezer? Helps with impulse buys, but keeps it handy for if you really need something or decide you can afford a 'want' after pondering it a while.

[superbadgirl]

I really, really hope my circumstances allow me continue never carrying a balance on my credit card.

[gategrrl.livejournal.com]

Here's one for you--I've been hearing increasingly about card-holders like you who have never carried a balance on their cards having their card CANCELED because of that. They don't make a profit for the company, so they get dumped. One poor woman (in an article I read) was traveling abroad when her card was canceled and was essentially left stranded *because she was counting on her card*.

Yeah. They manage to get people coming and going.

[superbadgirl]

!!!

That is not cool.

[ladyjax.livejournal.com]

Yeah, Shirley just told me her Capitol One cards were going up and she's working to get them paid off. Ridiculous!