Washington Mutual was the 1st to send me a pre-approved credit card after my Bankruptcy was discharged. The offer was 0% APR on purchases for 12 months & then after 9.99%
I have had this account now for approx. 1-1/2 years. I have NEVER been late, ALWAYS made more than minimum due & NEVER gone over my credit limit.
I receive my statement yesterday stating my APR will increase to 17.99% w / no explanation. I called thinking it was some type of error. I spoke w / a supervisor & their response..."The decision was based on your credit score"
WHAT? My credit score has to be right around the same as it was when they pre-approved me, as this is the only account i have. I have not opened any new lines of credit nor have I been late on my mortgage or auto payments which i must add, are accts i had prior to getting "pre-approved"
I still can't comprehend it! It doesn't seem legal. How can they underwrite & approve credit with an APR & then turn around & almost double the APR when you have done nothing but prove credit worthiness.
So basically, Washington Mutual is setting people up for failure as if this economy isn't bad enough! They offer a 2nd chance to people who are trying to rebuild there credit & then once you've had some time to use it & get the balance up... They stick it to you HARD! This is PREDATORY Lending.
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