Keep a Watchful Eye on Your Credit Card Interest Rates

The recent turmoil in the financial markets has everyone's heads spinning. But remember to try to keep your head on straight and eyes wide open to the effect this craziness has on you and your wallet. A note of caution to all of you out there who have outstanding balances on your credit cards - make sure you know what your credit card company is charging you in interest.

I had the recent misfortune of falling victim to hiked up rates (though I must say I could have done a better job myself of knowing what the credit card company was up to which is why I'm sharing this tidbit of information to you). In any case, I was floating along happy with my low interest rate of 3.99% and just paying the minimum balance due each month since I was in no hurry to pay off my credit card. (I know, I know shame on me for having any credit card debt at all!). Oh by the way, did I mention the name of the credit card company? I'm not afraid to name names it was Advanta. Anyway, one day I thought I should actually take a look at my credit card statement instead of throwing it in my filing cabinet like I usually do without opening it. When I looked at the APR and saw 34.99% I nearly flipped! I thought surely that was a typo, a mistake, an oversight, someone fell asleep at the wheel or something to that effect! So I hurriedly riffled through the stack of old statements and sure enough, my credit card company had been charging me 34.99% for 6 months and I hadn't even noticed! My balance was relatively low and my minimum payments never increased significantly so I had no idea I was being charged such an exorbitant amount. I always paid my bill on time and was a loyal customer for over 5 years.

I felt betrayed and angry, so I did what any reasonable person would do and called up the credit card company to yell and scream and demand my interest rate be lowered. But would you believe it, I got the stiff arm. Rude and unapologetic does not even begin to describe the demeanor of the person on the other side of the phone.

Apparently, after review of my file and careful calculations done on the likelihood that I would ever pay off my balance the credit card company decided that I was high risk and determined that 34.99% was the amount of interest they could charge me to justify keeping me as a customer. The nerve! After realizing I was fighting a losing battle I sternly requested that my account be closed and that Advanta never contact me ever again in the future because I would never do business with them again. Then I hung up, transferred funds from my bank account to pay off my remaining balance and washed my hands of the whole ordeal.

So all you fellow credit card debtees out there, be smarter then me and read your credit card statements, you might learn something.