I have a chase credit card that has a promotional interest of 5.99 2.99 3.99 . That was for the life of the loan. They send me a letter that now they are going to charge me 5% of the loan instead of the 2% which made the payment out of my reach. The option they gave me was that those interest rates listed above were going for 7.99% until 2011 then it will go up to 11.24% and my payment would stay the same I had no chose then to stay with the same payment amount. Can thy do that?
Ms. Lupe Gutierrez
Answers – Ms Gutierrez, yes credit card companies can do that because it states under the terms and conditions that they reserve the right to change your interest rates. The balance transfer for life offers (which used to be offered quite a bit) unfortunately is one of the things they wished they had not offered because it is probably unprofitable for them to do so.
Having said that, they are actually offering you a decent deal because they aren’t many folks who get approved for balance transfer deals these days. But raising your minimum payments may also affect your budget if you have no room at all. My advice would be to take their offer and redo your budget to factor in the extra minimum payments.
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