tiltyourhead's profile

tiltyourhead says: (9 months ago)

 0

I have an American Express Blue card that I have had for about 6 years. I think that the limit is about $5,000 and my interest rate has always been 9.99%. I never carry a balance of more than $1,000 and alway make payments of $200-400 monthly. I noticed today while paying off my blaance that my interest rate was 12.99%.

I called AMEX and was told that in November they raided the rates of almost every single card holder 3%. I was unhappy by this and the rep said that this was due to the ecconomic situation here in the U.S.

Some have posted that they are going to cancel their cards. I do not recomend this. Canceling a card that you have had for years with no late paymets will likely lower your credit score. Part of your credit score is based on the revolving credit that you have. By closing cards that are in good standing you are lowering your revolving credit. The lower your revolving credit, the lower your credit score. The best idea is just to pay off your balance and keep the card open. Just chare a tank of gas every other month or something to keep the card active. This will look better for your credit score than closing the card.
(American Express raises interest rate)