variable rate credit cards

[galerie]

Just got a notice from Chase about changing the fixed APR to a variable rate APR, and a notice from another credit card Simmons First about the same thing..

Are the credit cards losing that much money that they have to change the rates. Thank goodness I don't carry a balance.

Is this a good thing or a bad thing, since the interest rates are down, it might be a good thing. I don't know

[Chucktkd]

They can do pretty much anything they want with regard to the interest rate. When the Prez and Congress passed regulation on credit cards a few months ago they did nothing about regulating interest rates which is where they make their money.

[ybnormal]

This was announced about a month ago. You can thank all those defaulting and declaring bankruptcy. Just another case of the haves paying for the have/will nots.

[Baltimatt]

If you can, pay it off every month, that way it doesn't matter what the interest rate is (assuming there still is a grace period).

Do read the fine print.

Also, I think if one has an outstanding balance, often times the old terms will remain in effect if the consumer does not use the card after the effective date of any changes. Using the card is considered acceptance of the new terms (again, read the fine print).

[Steel Hop]

Just got a notice from Chase about changing the fixed APR to a variable rate APR, and a notice from another credit card Simmons First about the same thing..

Are the credit cards losing that much money that they have to change the rates. Thank goodness I don't carry a balance.

Is this a good thing or a bad thing, since the interest rates are down, it might be a good thing. I don't know

agree with everything said above. But credit cards have, generally, always been variable based on some precentage plus prime. (it has been the percentage number that has changed recently because of the increase in defaults.)

[suze06]

Beware of high fees in the fine print. They are not going to suffer lower (albeit variable) interest rates without some sort of payoff. As you stated you don't carry a balance so that shouldn't be an issue, but; it sure pays to read the fine print. There is a reason it is so microscopically small.

[galerie]

my agreement stated that I could not accept this change, If i didn't except the change the credit card would be cancelled. I probably call them and tell them to cancel the damn thing.

[sigmalady]

Fixed rate cards are are getting very scarce.

[Baltimatt]

my agreement stated that I could not accept this change, If i didn't except the change the credit card would be cancelled. I probably call them and tell them to cancel the damn thing.

Good for you!

[Foxtrot]

Just got a notice from Chase about changing the fixed APR to a variable rate APR, and a notice from another credit card Simmons First about the same thing..

Are the credit cards losing that much money that they have to change the rates. Thank goodness I don't carry a balance.

Is this a good thing or a bad thing, since the interest rates are down, it might be a good thing. I don't know

I got the same notice about a month ago from Chase. The change will raise my rate by 4% for starters, this will put it 6% above my citicard.
They dont know it yet but as soon as I cash in my rewards points this month, chase is getting dumped.

[BS21213]

I got my through my bank. No fees and fixed 10.75% even though I don't carry a balalnce.

But why would you not expect a business to not try to make up some losses from those who can pay?

I say, just say no. Cut the card up and mail it to them.