I have been a member of Discover card since and have never made a late payment in the entire 7 years as a customer. I have always paid way over the minimum amount due. Today I received a notice in the mail that they are raising my interest from 13.99 to 18.24, which is normally a default rate. I was given the option of sticking with the new interest rate (which does not only apply to new purchases, but my entire current balance) or opting out of the rate and closing my account, which I would be able to pay the remainder of the balance at 13.99. However, this credit card I have had longer than any other credit card, and I do not want to cancel my account due to the negative effect it will have on my credit score. I have enjoyed working with Discover, but this is outrageous. I know that credit card companies are wanting people to pay off their balances because of the recession, but forcing people to make higher minimum payments and receiving much higher finance charges every month is not going to help anyone out. The service rep I spoke with explained that the reason this is happening is because of competition, but I dont understand how they are helping with competitiveness when they are raising instead of lowering interest rates. I need some advice on what to do, because I really do not want to cancel this long-standing account that is helping my credit score, but it is not fair to be treated like an unsatisfactory customer when I have done nothing but positive things fro this company. Please look into my situation because I woud liie to get this resolved as soon as possible since I am looking to purchase a new home and every little thing on my credit report helps. Thank you!
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