Why would my credit card company switch from a fixed to a variable rate?

Credit and mortgage advice Forums Consumer Credit Credit Cards Why would my credit card company switch from a fixed to a variable rate?

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    • #212842
      Anonymous
      Inactive

      Recently I received a letter stating that my interest would now be calculated at a percentage plus the prime rate.

      We have had this fixed rate for a long time and never missed any payments.

      Why would they all of the sudden change my interest rate? They stated that it was NOT because of a credit bureau.



    • #278532
      Anonymous
      Inactive

      it was probably in the small print when you opened the card, a lot of times they have an introductory fixed rate, and then go to variable after an amount of time.

      A lot of companies out there will do a balance transfer at 05 for 12 months. Maybe change cards?

    • #285156
      Anonymous
      Inactive

      just another way for them to make more money!!!

    • #285519
      Anonymous
      Inactive

      They are trying to make more money. I would guess they just raised your rate by several percentage points.

      If you carry a balance on this credit card you should be able to contact the CC company and “freeze” the terms of the card until it is paid off. You won’t be able to use the card during the freeze but they won’t be able to jack your rate up and charge you more interest. After you pay off the balance at the fixed rate you can reactivate the card (or get another one) with the new terms.

    • #287312
      Anonymous
      Inactive

      they do it to screw you out of the maximum amount of money that they can get.

    • #288067
      Anonymous
      Inactive

      The answer is simple. They want to be able to charge you more interest. I suggest you pay it completely off and avoid paying them any interest.

    • #288568
      Anonymous
      Inactive

      Because credit card companies don’t have fixed rates.
      You play with snakes long enough and you will get bit.

    • #289002
      Anonymous
      Inactive

      it’s because the interest rates that they get their money on are always fluctuating. so they do want to be able to increase right along with the rates should they go up. you’ll be hard pressed to find on that ever lowers it.

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