How I Save Money.net

Tips and tricks to save money, manage credit and reduce debt

Credit Cards

Capital One Card…update


I decided not to accept the increase in the interest rate on my Capital One Card. This means that beginning 60 days from today I will no longer be able to do any balance transfers to this card. I will also not be able to charge anything to it and will have to cancel any recurring bills that I have paid with this card.

I will be able to keep my current interest rate on the card and pay off the balance monthly as I have been doing. The thing Capital One say is that when the balance reaches zero the card will be automatically closed off by them.

Oh well. I know that having a card closed will lower my credit score a bit…but by the time I finally get that card down to zero that will not be an issue. Right now I am more interested in not paying any more money in interest than I am already paying right now.

I am a bit upset that this had to happen because I really liked that card….and it was my lowest interest rate card but I will just have to get rid of it or pay a higher interest rate…which I am not willing to do right now.

I am more concerned with getting all of this debt paid off. I do not have any intentions of applying for any more new credit right now….already have a car payment and I do not see myself buying a house any time soon.

I guess I will miss this card but I already have too many cards….I think 5 should be my maximum so in a way this is a blessing. So here I am taking a deep breath and getting ready to just pay, pay, pay and not add any charges to anything else.


2 Comments

  1. Shane S.March 20, 2007 at 9:06 amReply

    Regarding Capitol One’s steep rate increase.. You are not alone. After years with Cap One and using it as my favorite card, I too got that letter. A 5% rate increase on an 8.9% rate (a 56% rate increase) is unimaginable. I suspect that after a couple years of relentless advertizing and signing up folks at a low rate they have now reached the threashold they envisioned and are sticking it to everyone. Greed – it’s what keeps america working, much like the indentured slaves of the past, credit is a cancer sucking the life out of our future.

  2. lulugalMarch 20, 2007 at 9:49 amReplyAuthor

    So did you keep the card and take the increased rate or did you tell them take a hike?

Leave a Reply

Feed Count
How I Pay My Bills
Sitemeter