I have been an on-time-paying customer since 2005 and this year they bumped my APR from 12% to 28.5%. Look, I filed bankruptcy in 2005 and I had no illusions about my credit situation so I immediately got an account to help me re-establish myself. This card has helped me greatly but I feel this APR hike is quite ludicrous and insanely high. It's like my loyalty and on-time payment history means nothing to this company.
I have called customer service to inquire about this hike, and even though she was courteous and tried desperately to keep my business, I told them that if this wasn't reversed soon, I would be closing my account and paying it off quickly. It looks better to creditors to have a lot of available credit via open accounts than to have closed accounts (which I learned after my bankruptcy).
They have even been sending me emails and calling me saying how well I've re-established my credit and since I have an excellent payment history with them, I qualify for a new card or to refinance my current auto loan. BS! IF they really felt that way, then it'd happen. Actions speak louder than words. But with this recent experience, I won't be going back to this company. I have qualified for and obtained 3 other credit cards so I don't need this BS.
That's another thing, do your homework. I know some of you reading this are probably thinking "if credit is such a bad thing, then why did she get 3 other cards?" I'll tell you why: a lot of available credit looks great to creditors, employers, insurance agencies (and anyone else who uses your credit history against you now), and etc. Because it shows that you have money when you need it. Your history also reveals whether you are a low risk to them (whether you'll repay your debt), you can effectively manage small or large amounts of available credit, your responsibility level, and etc. I have learned a lot but one greatest thing that entrepreneurship and debt have taught me is that it's great to have money on hand when I need it but there's nothing like SAVING money. You're less likely to waste it.
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