capital one doubled interest rates, is this right ?

[Energize]

Well if you are even half intelligent then you get a credit card with no interest for 12 to 18 months. No interest

It's not intelligence you need for a 0% card, it's good income, which incidentally defeats the point of it. Additionally 0% interest cards don't have good cashback.

Buy something you don't have the money for on a credit card and you're screwed if you lose your job, it's a bad idea.

 

[The Halk]

It could be said that they're right to increase the credit limit. You're not using the card properly, and as a result you're a much greater risk to them of defaulting.

You're supposed to use the card and pay it off within a few months. If the balance of your credit card isn't 0 at least once in a 6 month period then you're doing it wrong. If all you're doing is paying the minimum or close to it then you are far far liklier to end up a bad debt, so they've adjusted the interest accordingly.

What's really happening is that they're picking out customers who won't or can't move their balances elsewhere and charging them extra interest. The result for them is a much great profit margin on you, which is why they are doign things. If you get annoyed about it then it doesn't matter, because statistically while some people get annoyed and somehow stop using the facility most won't.

Ultimately it's your own fault for being in a position where you can't immediately clear off the card with savings - you've set yourself up for predatory lending.

Please ignore Leesolo's advice, he's got to be trolling.

Overdrafts are generally the same price as credit cards, if you can't get an overdraft then you're unlikely to get a credit card at less than 20% interest.

Personally I don't think it's morally right to have cards with that level of interest on them, it really is just preying on the stupid, same as these cheque cashing parasites - they're exploiting the poor.

 

[Seft]

Give them a call tomorrow. You should have received a letter informing you of any rate changes. If you haven't, it's probably a mistake, rather than a change to your account.

EDIT: Are you sure that your interest has doubled and that it isn't just that the minimum payment has increased? This should also be confirmed in writing.

 

[TheHitMan-1973]

oh bugger , only got a small balance of £152 think i will pay this up and dump it

 

[Efour]

VERY few people that use/need credit cards to pay for items over a period of time can get 0% ones I find that a very uniformed opinion.

Many credit companies dont want low income high risk customers hence your stupid rates. will be interesting how easy it is to switch to a 0% one for you, Ive heard many will turn you down at the moment.

im a moron with them so no longer use them.

 

[garyfl]

Give them a call tomorrow. You should have received a letter informing you of any rate changes. If you haven't, it's probably a mistake, rather than a change to your account.

EDIT: Are you sure that your interest has doubled and that it isn't just that the minimum payment has increased? This should also be confirmed in writing.

come to think of it it might be a higher payment, but its says thats what i owe on the 8th which is normally my monthly payment which is debited.

tbh i have good credit, had the card 13 months and never missed a payment, never missed a payment on my phone either etc.

and im not exactly poor, im a student and yeah i dont earn £40,000 a year but i am in a good side job earning £8.40hr 20 hours a week, its just most of my money has been going towards a project and also building my studio.

i got thes capital one card as ivd never had credit before, if i pay this one off would i now have a better chance at a better card ?

 

[Scrutinize]

come to think of it it might be a higher payment, but its says thats what i owe on the 8th which is normally my monthly payment which is debited.

tbh i have good credit, had the card 13 months and never missed a payment, never missed a payment on my phone either etc.

and im not exactly poor, im a student and yeah i dont earn £40,000 a year but i am in a good side job earning £8.40hr 20 hours a week, its just most of my money has been going towards a project and also building my studio.

i got thes capital one card as ivd never had credit before, if i pay this one off would i now have a better chance at a better card ?

Just beacuse Capital One have hit you with a massive interest rate whether it is 34% and they have doubled repayment or 70% doesn't actually mean your cerdit score is that bad. Worth checking on experian www.creditexpert.co.uk for your file report to see what the payment status of things are. No need to pay for a credit score. They put mine up to ~34% due to lack of usage. I closed the account.

You could probably apply for other cards with lower rates and transfer the balance.

 

[bloodline76]

It's not intelligence you need for a 0% card, it's good income, which incidentally defeats the point of it. Additionally 0% interest cards don't have good cashback.

Buy something you don't have the money for on a credit card and you're screwed if you lose your job, it's a bad idea.

If you bank at the certain banks then you can automatically get a credit card with them and most offer 0%. So it is about being smart.

If you lose your job then you are going to be screwed anyway in most situations. If he is on a low income then he shouldn't have got one in the first place.

Who cares if you get good cashback if you are getting charged stupid amounts in interest and penalties. Defeats the point.

 

[hux]

Kind of an oxymoron isn't it, charging those that struggle even more just because they're trapped. Not a nice position to be in at all.

 

[Wicksta]

It's not intelligence you need for a 0% card, it's good income, which incidentally defeats the point of it.

How does it 'defeat the point'? I have a 0% credit card (and have done for many years) but I've used it when I've needed to - the most recent example was when I bought a new car this year. Other times I've used it are when there have been unexpected expenses, plus this last year while my other half has been on maternity leave she wanted 4 months extra so I've dipped into my credit card a bit for Christmas. She is back at work in a couple of weeks so then I'll pay it back off at my leisure over the next few months with absolutely no interest.

Buy something you don't have the money for on a credit card and you're screwed if you lose your job, it's a bad idea.

I've been at my current company for 7 years, I'd be able to pay my debt off with the redundancy money. I'd then still have my savings which have been earning interest while I've been spending, interest free, on a credit card.

Just because *you* haven't found a use for a 0% credit card doesn't mean others haven't.

 

[BennyC]

Pay mine off in full each month. Though I very rarely use it. I have my debit card sat next to it but use my CC to help build up a rating. I generally don't buy something If I don't have the money for it, or coming in that month. Once I've usedmy CC I transfer that amount from one of my online accounts into another. Then I have the full balance used on my CC waiting to be transfered from an account to clear it. It's a good habbit to get in to.

 

[kibblerok]

Just skimmed this thread but if they increase the interest rate and you don't like it, you can close the card down and pay it back at the current interest rate (minimum payment monthly if you wish) - without the need to pay it all off at once.

 

[hux]

Nope, tried this with egg they pretty much said no chance, halifax did mind.

From what i've read egg/citibank are the worst of a bad bunch for dealing with.

 

[Jambo]

There is definitely something wrong here.

Where do you get 70% from? You need to check the APR on your statement or phone them and ask.

If you are paying £29 on a £360 balance that is more like 100% APR and just doesn't seem likely with Capital One. By the way if you only pay the minimum payment (based on 3%) you'll owe them £1m+ by April 2024.

Like a previous poster had said if they increased your APR you should have received a notification letter giving you the option to close the account and freeze the previous interest rate.

You need to speak to Capital One about this as soon as you can. If they can't offer a practical solution you need to find a way to pay the account off. Maybe borrow money from family or something.

 

[kibblerok]

Here is a link to some advice - including sorting arranging for the card to be closed but the curent rate to remain and payments made monthly as you have done previously to clear the card.

http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

 

[Energize]

If you bank at the certain banks then you can automatically get a credit card with them and most offer 0%. So it is about being smart.

Your personal financial situation is always the most important factor.

If you lose your job then you are going to be screwed anyway in most situations. If he is on a low income then he shouldn't have got one in the first place.

Not at all. You can always move in with someone else, if you can't afford a credit card bill though you end up with a terrible credit rating, maybe even going bankrupt.

Who cares if you get good cashback if you are getting charged stupid amounts in interest and penalties. Defeats the point.

You pay it off before you get charged interest and so get a discount on everything you buy.

How does it 'defeat the point'? I have a 0% credit card (and have done for many years) but I've used it when I've needed to - the most recent example was when I bought a new car this year. Other times I've used it are when there have been unexpected expenses, plus this last year while my other half has been on maternity leave she wanted 4 months extra so I've dipped into my credit card a bit for Christmas. She is back at work in a couple of weeks so then I'll pay it back off at my leisure over the next few months with absolutely no interest.

I've been at my current company for 7 years, I'd be able to pay my debt off with the redundancy money. I'd then still have my savings which have been earning interest while I've been spending, interest free, on a credit card.

Just because *you* haven't found a use for a 0% credit card doesn't mean others haven't.

You seem to be responding to someone else because I didn't say they don't have their use, I said that buying things you can't afford is a bad idea. I'd personally prefer 5% cashback than 3% after 12 months in an ISA though.