Credit card crisis looming?

[Bingoking]

This is scary: I have a Capital One credit card. Had it for years with 9.9% interest. We have a FICA score around 820. I get a notice in the mail today that they are changing my interest rate to 29.4%. This will not hurt me as I only have a little over $100 for a balance due. Needless to say I will be shopping for another card.

My sense is with so many people out of work they are living on their credit cards and not making payments - so the credit card companies have to raise rates.

I heard a while ago that this is the next crisis coming down the pike. Odd that they would do it to a long-standing customers with an excellent credit rating. Not sure what the reasoning is behind that. Capital One has to be desperate for cash. I wonder how many others are?

Anyone else getting notices like this from other credit card companies?

 

[Redneck]

I have

2 from Cap 1
1 from BAC
1 from my Credit Union


I received the same notice for both from Cap 1

Call them - they will waive you


Have not received any notice from the others... and my balances are like yours


Redneck

 

[Bingoking]

I called them but they never offered to waive i for me. Odd. Never missed a payment and always kept a low balance.
No skin off my nose - will just move on with someone else.

Anyone know if they got bailout money?

 

[Redneck]

No clue about the bail out


When you called them did you speak with the front line (answer type) folks, or ask for someone higher up

 

[lrm21]

Actually this is to be expected

1) Credit is now scarce

2) short term unsecured credit is very scarce

3) as a result Cards can jack up rates, many people will be unable to rollover the debt or shop around, most will be unable to pay off balances. So they are stuck paying high monthly mins

 

[kxvid]

Harbinger of things to come? Not good at all..

 

[S2007S]

They raised my APR to 11.99%. I'm with AXP. Switching to 0% for the next 12 months.

 

[allaboutmoney]

Quote from Bingoking:

Not sure what the reasoning is behind that.

to make sure the economy is f'ed to a point of no return

 

[Kicking]

These COF people are crooks. Does that mean all your balance is charged a 29% interest ? Glad I live in Europe where this is not allowed.
Just wait, Obama is gonna make this illegal expecially if there is any chance it will affect the economy.

 

[Sushi]

within 4 months tops your not gonna be able to switch to another card. They will all be in the 20s. It's a done deal. Nothing anyone can do. Charge em up now then bk. Otherwise they will own you if you have a balance. Just a friendly warning