Thread: Interest rates going up? Decline the terms!

Hi Everyone,

I've read a bunch of threads here from people who have balances and have had their interest rates go up. But no one is telling them the solution!

You can "decline the new terms", if you call the CC company withing a certain period of time after you receive the notice. They won't be able to raise your rates if you do this. Usually they will close your card right away, but I have seem them allow you to keep the card active for up to a year.

I've known about this for years; last year I finally used this trick when both of my card companies doubled the rate at approximately the same time.

I agree with MOP. Last ditch if you are paying down huge balances then decline the new terms, but your credit will be done for. Calculate what you would save vs. what your cred score is worth today. It is different for everyone.

What happens when you have a zero balance on the card, decline the change in terms, and ask to close the account?

It's interesting that many banks will not respond to such a request, and I have to write to them again to request that the account be closed. It's as if they want to be able to say "Gotcha!" if I ever use that card again.

Originally Posted by Mogul of Pineapples

But what you need to keep in mind is that it might hurt your credit. It could show on your credit report that the card was closed by the bank (not you). The other thing is that the credit limit is usually instantly cut to the amount of your balance, so it will show you are using 100% of your credit limit.

I finally got around to checking my credit report and neither of those things are true.

My credit report shows both cards with the original credit limit, and the "percent credit used" number that applies to the whole credit report is in line with the original credit limit and current balance.

Also, it says that the card was closed by me and not the bank. After all, I am the one who requested the closure.