Advanta Bank Corp was soliciting small business owners with fixed low interest rate offers only one year ago. Since I had just opened a business and needed a good card for purchasing inventory, I took the bait.
Now, after a year of business, during which time I have made EVERY payment on time, and have never gone over my limit, they have raised my interest rate from 7.9 to more than 26 percent!
I might add that I have an excellent credit score (759), and all of my other bills are paid on time, as well. I have a solid business, and I am not over-extended on credit.
As others have reported on this site, Advanta appears to be arbitrarily raising interest rates to cover their losses in other areas.
I wonder if they are delierately targeting customers with good credit scores, thinking that those people who judiciously protect their credit may be less likely to default.
My financial advisor suggests other banks may initiate moves like this in the near future. This makes me very nervous, as these kinds of tactics can easily drive small businesses right out of business—the very last thing this economy needs.
Thanks for this site.
0 comments