It looks like we are not the only ones, but upon opening our Advanta statement today I discovered that our rate was jacked from 7.99 to 30.08.
We've been a customer for about 8 months and have had NO late payments, pay considerably more than the minimum amount due and have NO negative payment history on the 3 bureau's for personal or business credit... Not one 30,60 or 90 day late in more than 8 years.
We are a young company, under 2 years, but only in name. Our company was "started" when we bought out a 7 year old division from a former employer. I will contend that we do have some high utilization on our personal credit cards over the last year. Since we are a young company, it is difficult to get business credit [especially in today's credit markets - even though we have been cash flow positive since day 1], so much of our business purchases are on our personal credit cards. This plus some other usage that is related to home renovations [80% related to building out new home office space], has increased our utilization... But even with this, we make *significant* payments on all our cards each month to reduce those balances.
Upon reading that our rate had jacked over 22%, I immediately called customer service to see why this was and was told that the rate was increased, they can't tell me why [it's based upon a number of factors] and it's within their credit card guidelines to do so.
I could close my account, but the balance would still be due at the 30.08 APR, not the 7.99 that it was last month.
Thankfully we only have about $2500 on this card, and it will be paid off within the next couple of weeks due to this.
I am appalled that they promote themselves as the card for small business, but then turn around and treat their small business customers this way. Up to this point I was very satisfied with the card, it's limit for a new company and it's features... So much so that I was recommending it to colleagues and other businesses we do business with. I can tell you that the recommendations will certainly end today and I will be telling everyone I can to stay away from the Advanta card.
I know it will likely not do me any good, but I will also be sending a letter to our Attorney General and our local media outlets telling them of these poor, and in my mind, deceptive business practices of Advanta.
Pissed Off in Ct
, Connecticut
U.S.A.
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