Friday, May 14, 2010

Capital One

I am paying down balances on two Capital One credit cards (one business, one personal).

For the past year, on one of those cards, I've been paying a fixed amount each month representing more than the minimum required, and I've been paying early each month, sometimes as much as two weeks in advance.

Regardless, Capital One just raised the interest rate on that card by 5%, from 12.9% to 17.9%.

I suspect this is an outcome of the new credit card law, which went into effect at exactly the same time as my notification of the change from Capital One. They saw they would be making less money overall, so they upped interest rates even on accounts like mine that are getting paid down responsibly.

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