Friday, November 2, 2007

Credit Card Rate Increase

FIA Card Services is changing the terms of my credit card agreement. Credit cards can be very costly if not used with moderation and responsibility. I use credit cards essentially for the rewards and for the convenience. They also help my credit score as long as I am not late on my payments. Not only do I pay by the due date, but I also pay the balance in full each month.

The APR increase, from 14.99% to 24.99%, is for cash advances only. It does not apply to purchases which remains at 14.99%. It goes in effect in January 2008.

I would never use a credit card for cash advance, so this rate increase does not really annoy me. But a sentence in the notice caught my eyes : "We increased your APR due to the balances and APRs on this account." What does this mean exactly? Why are they increasing my rate? Could it be because I am a credit card deadbeat?

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