Musing on food and cooking ...

Tuesday, July 31, 2007

I Don't Think CapitalOne Wants Me as a Customer Anymore

I returned home from my vacation and started going through my mail. There was an envelope there from CapitalOne. Urgent information about your account - Open Immediately! I normally don't look at these because they are usually just purchase checks or some other attempt to get me to spend more moolah. But I opened this one for some reason and am I ever glad I did.

It seems that CapitalOne has decided they are not making enough money and have decided to raise their interest rates more than 6%, making my rate almost 16%.

Now I have had my CapitalOne card for more than a decade. I have had a 9.9% interest rate since the beginning, even when the standard going rate was something close to 20%. I have never missed a payment, and I do carry a balance and so I know they are making money hand over fist on my account. Of course, I rarely use my card for new purchases, but I still have a fairly large balance to pay off over the next five years so they are not in any danger of loosing money on me any time soon. So why this almost putative increase in the APR?

CapitalOne claims it is because interests rates have increased so much over the last couple of years they simply must raise their rates. I call bullshit.

Interest rates are not that much higher than they were three years ago. The interest rate I got on my home mortgage in 2007 is almost identical to the mortage rate we had when we purchased our Massachusetts home in 2002. Really, I think it is CapitalOne's way of trying to increase the money they are making or of getting rid of customers who are "too good" and never have late fees.

So, in the letter, they give me a choice of bending over and taking it or freezing my account and never using it again. I think I will take another road... transfer over to Chase Bank's 18 month 0.0% APR on balance transfer (with a transfer fee of $99) with a fixed 9.9% after the 18 months are up or go to Bank of America and get a personal loan at 8.9%, pay off CapitalOne, and never have a credit card for general purchases again. Either way, I think I will be telling CapitalOne it is no longer what is in my wallet.

1 comment:

Timmy said...

Girlfriend, they bank on people being too lazy to do anything about their interest rates. I have three card. We pit them against each other, transfer balances, and threaten to close the account. We get low rates -- even with an occasional payment that doesn't arrive exactly on the due date.