Advanta Bank Corp. Promised 7.9% business ccard; but raised the rate to 45%. Salt Lake City Utah
Ordered a credit card with a life time rate of 7.9%; several months later they raised our credit limit and our company dicided to use the card for several major purchases and they increased our interest rate to 45%. When we contacted them they informed us that we were a high risk. Although we had 18 years of payment history and never had any late payments.
Birch mountain
Thurman, New York
U.S.A.
1 Updates & Rebuttals
Flynrider
Phoeix,Arizona,
U.S.A.
You got most of it right
#2Consumer Comment
Thu, May 28, 2009
Except for the part about the lifetime rate of 7.9%. You made that part up. Advanta (or any other CC company) has never offered a lifetime rate on any card. What they do offer is a card agreement that says they can raise your rates whenever they feel like it. That's exactly what they did.
Next time read the card agreement before running up a big bill. I'll give it to you in a nutshell. There is virtually no way to guarantee how much you will pay in future interest on an item you purchase today. All credit cards are the same in this respect, which is why it is stupid to borrow money this way. Would you sign up for a car loan that said the bank can change your monthly payment and interest rate whenever they liked? Of course not! But that is exactly what you do when you borrow via a revolving credit agreement.
Your options are to pay it off or transfer the balance to a more reasonable card (with no guarantees that they'll stay reasonable).