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Bank 1 card raised APR from 14.24 to 24.74, how can I lower?

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My basic question...how should I proceed in requesting my Credit Card company, Bank 1, to reduce my APR back to my original agreement or less? Will this involve a hard pull? What can I do before I put in such a request for a lower APR that will help me? My ultimate goal is debt reduction and this change to higher interest is not helping.

 

Okay....I am still a noob at this but doing lots of reading / research.

 

In January Bank 1 sent a letter saying that my account was going to increase my APR from 14.24 to 24.74. Of course at the time I did not really read this letter and just filed it away only to open up my statement today to the bad news. I have read the letter now however.

 

I called Bank 1 and asked "why the increase in APR". They referred me to a CRA, Experian, and a phone #. Just now I went to Experian's website and paid for a report and score. There isn't anything really negative or inaccurate on this report. The only inaccurate information they had was my Age (off by a year), and my current employer. Other than that, I have paid all my statements on time, never late, in the past two years according to the report. Also, Experian is only reporting 4 inquiries, the most recent one being last year: Feb 2003.

 

So, a bit of further background ...

 

Last year around Sept/Oct, I had another Bank 1 card with 1k limit. Same sort of thing happened, APR went up, I got upset and closed the account. Now, looking back, I realized I probably should have left it opened. That card is now paid off in full as of the last billing statement.

 

This current Bank 1 card, I have a 5k limit on it, with 4.7k balance. I have been paying the minimum balance on this card due to the fact that I have been trying to reduce debt and paying a higher interest store charge card.

 

I also have a store charge card. It's limit is 3500. Back in Jan it was above 50% of its utilization. As of last billing statement I have successfully gotten it below 50%, down to $1.4k.

 

I also have a Capital 1 card with $3.00 balance with limit at $600.00.

 

So....I want to reduce the APR on the Bank 1 card and probably should look at the Store Charge Card as well. Both of them are well above 20% APR. My finance charges on my Bank 1 card practically doubled from last month's statement!! My goal has been to reduce debt and these high interest are not helping.

 

Btw, Experian's PLUS score on me is 726, excellent.

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CC companies at times have been known to do this for various reasons.

 

 

I called Bank 1 and asked "why the increase in APR". They referred me to a CRA, Experian, and a phone #.

 

Their response to your inquiry was a pretty poor one. While they might have based the decision to raise your rate because of what was on your EX report, it is up to the creditor to make the decision. A CRA does not make any decisions regarding credit, they simply report information. I would call back BankOne and push them more for a specific reason.

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#1 REASON FOR RATE JACK---BECAUSE THEY CAN

 

YOU CAN JACK THEM BACK

 

Don't accept the new rate...THEY WILL CLOSE IT you pay at the old rate

 

You can accept it but PIF with a BT from another card then stick it in the SOCKDRAWER

 

ALWAYS HAVE A BACK-UP OR TWO OR FIVE

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YOU CAN JACK THEM BACK

 

Don't accept the new rate...THEY WILL CLOSE IT you pay at the old rate

 

You can accept it but PIF with a BT from another card then stick it in the SOCKDRAWER

Well, if he got this notice of new terms back in January, I'm sure it's already too late to NOT accept the new terms. Generally, you have to quit using the card at that point - which he didn't state clearly. If he's used it since then - and I'm assuming he did, then that automatically binds him to the new terms. I'd definitely look for another card that wants his business.

 

And don't rely on the plus score from EX...I had a FICO of 702 and my score plus was around 782. Look at the FICO discount thread at the top of this forum and go pull your FICO.

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I have a 5k limit on it, with 4.7k balance.

 

This is why you got 'rate jacked'.

 

You have a good score. Get a new card that has a 0% bt and move this balance over. Keep the card open. Just never use it. Maybe for dinner now and than and always PIF. If you PIF then the rate is a non issue.

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I have not used the card in question for a while with the exception of automatic payments to Netflix. Had I known, or rather been paying attention, I would have moved my netflix to charge a different credit card.

 

Its too late to reject the new terms since I have used this card for netflix :D. So I am screwed at this new rate...

 

I suppose I will look for another credit card that offers BTs and move money over. Any suggestions on which cards to look at?

 

Thanks all!

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I suppose I will look for another credit card that offers BTs and move money over. Any suggestions on which cards to look at?
It'd help to know your FICO in this instance, along with how many inquiries you have.

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Btw, Experian's PLUS score on me is 726, excellent.

 

Fleet?

 

I got a fleet platinum 15k CL 0% BT until October 05. They pulled EXP. 717 at the time.

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the reason your rate was jacked is pretty simple utilization on this card and the others and your min payments watch for the others to jack......

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Why start a new thread when you have a perfectly good one here with all the important

details?

 

I probably should have kept going on this thread but I felt that I had different questions now than I did when I first started this thread. Initially, I wanted to find out why my APR increased and how I can reduce it. People recommended I BT the balance as a solution. Thus a new thread so on a more general subject: Which credit card company I should be looking at for BTs, etc.

 

But you're right, this thread has a lot of information ... I did however summarized on the new thread and gave even more information.

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Keep one thing in mind; even though you inadvertently "accepted" the new, higher APR by using the card, you can still BT it and pay it off. As others have said, once it's paid off, they can jack the interest rate to 55% and it won't matter because you'll have a zero balance.

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