| NoArmsJames |
02-23-2009 07:40 PM |
I'm not very good when it comes to this kinda thing
I got a letter today from my credit card company saying they're raising my rates. It's written in a very unclear way and I'm wondering if someone can help me figure it out. Here are the juicy details:
Quote:
Due to extraordinary changes in the economic environment, we're reviewing our existing credit card accounts. Having considered these economic conditions, your accounts current purchase rate, and the length of time you've had this rate and account, we will be changing your purchase and balance transfer rate.
However, you will not be assessed a higher purchase rate listed below until next year*
Purchase and balance transfer annual percentage rate (APR):
a promotional rate equal to your existing non-introductory purchase APR through your January 2010 billing period. Beginning within two billing periods after that, a variable rate equal to 22.9% (0.6274% daily periodic rate) as of January 28, 2009. This APR may vary monthly and will be determined by adding 19.65% to the prime rate.
Please note that the rate on purchase balances and balances transferred at the purchase rate will NOT expire until least January 2010.
Any introductory or promotional rates on your account will not increase until they expire.
Special transfer rates are NOT impacted by this change.
*effective with your first billing period that begins after April 17, 2009, your existing purchase rate will be treated as a promotional purchase rate that won't expire until 2010.
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I'm confused. They are raising my rate, but only until April?
They're also raising my default rate
Quote:
a variable rate equal to 29.4% (0.08055% daily periodic rate) as of January 28, 2009. Your default APR may vary monthly. The rate will be determined by adding 26.15% to the prime rate
if we receive your payment three or more days after your payment due date twice within any 12 billing periods, we may increase your APR's immediately to the above default APR . We will return you to your prior non-introductory APR's if you make at least the minimum payment on time for 12 consecutive billing periods.
Please note that if your rates have increased to the accounts current default APR prior to the effective date of this change, your rates may be increased again to the new default APR if you make another payment that's at least three days late after the effective date of this change
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This one's a little bit clearer, but still confusing.
The letter also says that I can decline these changes, and that my card will be shut off in May. It states that I cannot make any more purchases with the card after May (if I cancel), that I would have to cancel all scheduled payments, and I would forfeit any rewards. It also says that I'll be able to pay down my balance at my existing terms. Does this mean I can continue paying off the balance after May, or that it must be paid by May? I'm pretty sure I want to decline the rates, but not if I have to pay it off by May because I just don't have enough to do that.
Any help clearing this up would be very appreciated. |
