GM Card APR.......

[FinanceDude]

So, I have had a GM card since 1992, when they started the program. It's run by HSBC bank. DW and I have used it to buy 2 GM new cars, saving $1500 on one and $3500 on another, by paying off the card each month but earning rebate dollars.

We have a line over $25K and no money on it. I called the GM card folks after I received a letter that they were "changing my terms". Typically, my interest rate had been higher than my other cards, but not much.

I was informed that my "new" APR is 27.99%. Keep in mind we have no balance on this or any other card. It doesn't affect me, since we pay in full, but I wonder how HSBC and GM thinks this will help.

Our credit score is over 800, we have NO credit card debt, and our interest rate is still 27.99%. Wonder how the folks who have tapped their GM card can afford it........ I contacted GM and asked about it, and they told me they were denying my request for a lower APR. Hey, at least I tried on principle...........

 

[ziggy29]

In some cases they are slitting their own throat. When you're struggling because borrowers can't pay you back, you make it harder for them to pay you back?

 

[FinanceDude]

Citibank dropped my APR, I guess they have a lot of extra TARP money to help me........

 

[calmloki]

So, I have had a GM card since 1992, when they started the program. It's run by HSBC bank. DW and I have used it to buy 2 GM new cars, saving $1500 on one and $3500 on another, by paying off the card each month but earning rebate dollars.

We have a line over $25K and no money on it. I called the GM card folks after I received a letter that they were "changing my terms". Typically, my interest rate had been higher than my other cards, but not much.

I was informed that my "new" APR is 27.99%. Keep in mind we have no balance on this or any other card. It doesn't affect me, since we pay in full, but I wonder how HSBC and GM thinks this will help.

Our credit score is over 800, we have NO credit card debt, and our interest rate is still 27.99%. Wonder how the folks who have tapped their GM card can afford it........ I contacted GM and asked about it, and they told me they were denying my request for a lower APR. Hey, at least I tried on principle...........

Pay in full each month? You're a deadbeat! (in card terms). me too. Figure the card companies are trying for as much lucre as they can get before they get regulated and the interest rates get slapped down....

 

[Bestwifeever]

That's hysterical, but since you don't carry a balance, you're still winning by getting the rebate.

 

[FinanceDude]

Pay in full each month? You're a deadbeat! (in card terms). me too. Figure the card companies are trying for as much lucre as they can get before they get regulated and the interest rates get slapped down....

I have 3 cards, and $83,000 in credit lines, with a $0 balance. Man, my utilization ratios are whacked........

 

[FinanceDude]

That's hysterical, but since you don't carry a balance, you're still winning by getting the rebate.

It just got better, I got an e-mail alert today that my credit limit on my GM card has been DECREASED to under $20K. I found that out when I called to activate the new cards they sent me.

That settles it, I AM a DEADBEAT. They raised my APR to 28%, lowered my line by $8000, I guess I better foreclose on my house so the trifecta is complete........

 

[calmloki]

BTW, just on the off chance anyone doesn't know why i called FD a deadbeat:
Being A Credit Card Deadbeat - Sometimes It Is Tough, Dude — Money, Matter, and More Musings

We should all be deadbeats!

 

[freebird5825]

um...i'm a deadbeat for the credit card companies, too.
do i get a prize above and beyond the $200 i made in cashback this past year?

 

[ziggy29]

um...i'm a deadbeat for the credit card companies, too.
do i get a prize above and beyond the $200 i made in cashback this past year?

We were "deadbeats" enough this year that we racked up enough points to fly my father-in-law down here for Christmas. Turns out that using the points for the flight was more cost-effective than taking the points as cash back and paying for the flight.

 

[freebird5825]

BTW, just on the off chance anyone doesn't know why i called FD a deadbeat:
Being A Credit Card Deadbeat - Sometimes It Is Tough, Dude — Money, Matter, and More Musings

We should all be deadbeats!

actually, i just figured he deserved it!
i better go slither off into the forest before FD see this and fires back.

 

[bbbamI]

I pay my cards in full each month too. I have no idea how much my APR is...on any of the cards.

 

[Grep]

Two of my banks have been taken over by other banks in the last couple of months.

After both promising me that nothing has changed but the names, both of them have hit me with various egregious new fees. After calling them up, they have rescinded them (for the time being), but I fear that "soak your customers" is no longer reserved for people on the margins.

This may soon become a chronic battle. Each and every one of us will become a major profit center for them, and tolerate being victimized as customers. Otherwise, we may be constantly scrambling to find new banks, credit cards, etc. After the teaser period, the process will begin anew.

 

[Alan]

Two of my banks have been taken over by other banks in the last couple of months.

After both promising me that nothing has changed but the names, both of them have hit me with various egregious new fees. After calling them up, they have rescinded them (for the time being), but I fear that "soak your customers" is no longer reserved for people on the margins.

This may soon become a chronic battle. Each and every one of us will become a major profit center for them, and tolerate being victimized as customers. Otherwise, we may be constantly scrambling to find new banks, credit cards, etc. After the teaser period, the process will begin anew.

Please share what fees they are applying. I haven't paid any bank fees for as long as I can remember.

 

[Grep]

In one, an "account maintenance" fee plus a separate monthly fee for returning checks, totaling $40/month. This was for an account with just under $10k in it. The other was also a new maintenance fee, for a simple savings account (no checking).

 

[Alan]

In one, an "account maintenance" fee plus a separate monthly fee for returning checks, totaling $40/month. This was for an account with just under $10k in it. The other was also a new maintenance fee, for a simple savings account (no checking).

That sucks. I would be moving my accounts. I hope this isn't a trend that other banks will be following.

 

[brewer12345]

Heh, I got a letter last week from bank XXX stating that my XXX credit card was now owned by YYY and since I hadn't used the card in over a year they were cancelling it. I obviously wasn't a profitable customer and don't really care, but I wonder how many people getting these letters are really hurt by it.

 

[Nords]

um...i'm a deadbeat for the credit card companies, too.
do i get a prize above and beyond the $200 i made in cashback this past year?

Try sending your payment to the wrong address and wait for a month. They'll be lusting after you again in no time...

 

[mickeyd]

Along these lines, I found this interesting article today about upcoming changes in the CC industry.

The Federal Reserve System's board is expected to announce new credit card regulations Thursday. The proposed reforms include the elimination of universal default, which allows financial institutions to change the interest rate on a card if the consumer is late with a payment to another lender.

Credit card industry facing overhaul

 

[OAG]

I got a letter a few weeks back from Chase. In the letter they, in paragraph, 1) thanked me for being a good and loyal Chase customer. In paragraph 2) they told me they were canceling a Credit Card I have not used in two years. In paragraph 3) they hoped I would avail myself to some of their other services in the future. Banks, I think they are all going nuts.

 

[Ronnieboy]

Heh, I got a letter last week from bank XXX stating that my XXX credit card was now owned by YYY and since I hadn't used the card in over a year they were cancelling it. I obviously wasn't a profitable customer and don't really care, but I wonder how many people getting these letters are really hurt by it.

I got the same thing and I was torqued because I only had the card to keep an eye on my FICO score, one of its benefits (I guess the only one) was that I could check every month or get an email alert if it changed.

I would have charged a pack of gum once a year to keep it open but no such chance, just closed...goodbye

 

[liveitup]

I got a letter a few weeks back from Chase. In the letter they, in paragraph, 1) thanked me for being a good and loyal Chase customer. In paragraph 2) they told me they were canceling a Credit Card I have not used in two years. In paragraph 3) they hoped I would avail myself to some of their other services in the future. Banks, I think they are all going nuts.

I received the same letter from Chase.I applied for a cc with a different company over the phone and received instant approval,without stating income.I rarely use cc,but I like to keep several accounts open,to maintain a high fico score.It actually went up,possibly due to a higher limit on the new card.Thanks Chase!

 

[maddythebeagle]

In some cases they are slitting their own throat. When you're struggling because borrowers can't pay you back, you make it harder for them to pay you back?

Makes perfect sense....one issuer is getting a bigger slice before you completely stop paying everyone