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1600 Nomad
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147 Posts
Discussion Starter · #1 ·
Like a few other credit card companies, this "group" sent out a letter that may change your interest rate.

Be certain that you read these letters from all your cards this time. In some cases you can opt out, and pay off the balance at old rates. But, it will close the account.

HSBC/Kawi cited a 6 point jump in their example. Spinning the actual jump of 30% !
 

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Old Man Riding
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930 Posts
I guess it depends on numerous things, but I use a credit card for almost all purchases. I make every attempt to not over-indulge and manage to pay it off each month. I get 1% cash back on purchases, so that's nice. I can't get that using cash. For me, it's like a 'free lunch' every month - and who said "There's no such thing as a free lunch"? :) JK - but a CC is okay providing you use it wisely. It's mainly a discipline thing under normal circumstances.

FYI: PenFed offers loans on MC's - and their rate is way better than the ridiculous rates that CC companies offer. Something to think about.
 

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nu2kawi
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2,707 Posts
CC are not a good way to purchase anything. For me it was just one thing led to another. For me the most hassles came from HSBC, unwilling to work with my situation and raised my interest to 31 percent while a couple lowered their rate. Check the contract close. I think most say they can raise the rate any time. HSBC chose that option.I had to give my bike back or pay off the balance but not just pay what I could to catch up. All or nothing. I'm not blameing them, it's just the way things went for me.Kinda miss that bike but I can't drive or ride right now anyway.
 

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TV Guru
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11,779 Posts
CC are not a good way to purchase anything.
Not true.

Credit cards are an excellent way to buy things. It's just a bad way to finance them. That's a distinction that many people have trouble with.

Credit cards allow you to make large purchases without carrying a dangerous amount of cash with you. Credit cards often automatically extend product warranties. It's really hard to buy stuff online without a credit card. Proper use of a credit card helps maintain your credit score. Using a credit card provides proof of purchase or payment as opposed to cash. Use of a credit card can protect you fraud.

The trouble starts when you start using them as a "loan" instead of an alternative to cash.
 

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1600 Nomad
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147 Posts
Discussion Starter · #9 ·
Please, this thread is not about people's individual opinions.

The point is to inform people that something might be happening to them, that they might not be aware of.

Further, that anyone considering a future purchase, or Kawasaki Corporate, should be aware of the actions by HSBC. (As well as by Citi-Bank,and others)

Please limit posts to the subject of the thread. Which is a dramatic increase in finance rates by certain credit card companies.
 

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NEW VULCAN, OLD RIDER
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734 Posts
I think most credit card companies have been jacking up rates, lowering limits and asking for bigger payments since the economy went south. Now they are all scrambling to eek out every last dime they can before the new rules kick in in February that are supposed to offer some protection from their predatory practices. I know, it is our fault for falling into the credit card trap, but they indeed have taken advantage of our weakness.
 

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I'm your Huckleberry
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3,317 Posts
Not true.

Credit cards are an excellent way to buy things. It's just a bad way to finance them. That's a distinction that many people have trouble with.

Credit cards allow you to make large purchases without carrying a dangerous amount of cash with you. Credit cards often automatically extend product warranties. It's really hard to buy stuff online without a credit card. Proper use of a credit card helps maintain your credit score. Using a credit card provides proof of purchase or payment as opposed to cash. Use of a credit card can protect you fraud.

The trouble starts when you start using them as a "loan" instead of an alternative to cash.
Agreed on all accounts. I use my credit card to purchase just about everything...even pay my bills! But it gets the entire balance paid off every month.

On topic, credit card companies have been jacking up interest rates whenever they feel fit for quite some time. Nothing new there. But what I don't like is them charging for the 'priviledge' of having one. Yeah, its very selfish of me...wanting to use a card without ever paying them a dime in interest or fees...but dangit I don't wanna pay!

I saw the interest rates the Kawi credit card was charging before I bought my first bike...no way in hell I was paying that. Went with a local bank at a MUCH lower interest rate.
 

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TV Guru
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11,779 Posts
On topic, credit card companies have been jacking up interest rates whenever they feel fit for quite some time. Nothing new there. But what I don't like is them charging for the 'priviledge' of having one. Yeah, its very selfish of me...wanting to use a card without ever paying them a dime in interest or fees...but dangit I don't wanna pay!
No, you're right, jacking up rates isn't new.

However, what is new, is how much. It hasn't been until recently that people have started seeing rates over 30%. That's crazy high, and usually on the people that can least afford it. So, those people that had balances that were manageable now make pretty much zero progress with their payments.

I have no sympathy for people that jump into something that high right off the bat, but when you were already in at a lower rate, it sucks.

It really hurts if you're simply someone who got caught up in a layoff, then had some bad luck with a furnace dying or a leaky roof and had to charge it to a card - then suddenly the rate goes through the roof and it takes 10 years to pay off that couple of grand.

The thing is, if you paid your bill every month (even while carrying a balance), they used to leave you alone since they made money off that interest you paid. Now, it doesn't seem to matter. If you carry a balance, they jack your rate, if you don't, they cut your limit, if you stop using the card for a few months, they dump you. All are bad for your credit rating.
 

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I'm your Huckleberry
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3,317 Posts
No, you're right, jacking up rates isn't new.

However, what is new, is how much. It hasn't been until recently that people have started seeing rates over 30%. That's crazy high, and usually on the people that can least afford it. So, those people that had balances that were manageable now make pretty much zero progress with their payments.

I have no sympathy for people that jump into something that high right off the bat, but when you were already in at a lower rate, it sucks.

It really hurts if you're simply someone who got caught up in a layoff, then had some bad luck with a furnace dying or a leaky roof and had to charge it to a card - then suddenly the rate goes through the roof and it takes 10 years to pay off that couple of grand.

The thing is, if you paid your bill every month (even while carrying a balance), they used to leave you alone since they made money off that interest you paid. Now, it doesn't seem to matter. If you carry a balance, they jack your rate, if you don't, they cut your limit, if you stop using the card for a few months, they dump you. All are bad for your credit rating.
Thats the worst part...you can't fight back without taking a major hit to your credit rating. And if you just sit back and take it, you'll end up in worse shape financially anyway.

Its a lose - lose situation.
 

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Wannabe Poser
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3,446 Posts
HSBC has their fingers into so many branded cards it's unreal. Most store cards are HSBC. Have heard of nothing but problems with them. My bad I have my bike thru them. First time they jack my rate and they can take the bike back. At my age I don't really give a rats azz about my credit rating. It's high but then again it's not like I'm going to buy another house or make a major purchase. I'll pay off the bike early anyways. Still I would never do the Kawi credit again.
 

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TV Guru
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11,779 Posts
HSBC has their fingers into so many branded cards it's unreal. Most store cards are HSBC. Have heard of nothing but problems with them. My bad I have my bike thru them. First time they jack my rate and they can take the bike back. At my age I don't really give a rats azz about my credit rating. It's high but then again it's not like I'm going to buy another house or make a major purchase. I'll pay off the bike early anyways. Still I would never do the Kawi credit again.
That's the other issue. You've got a limited number of banks that are actually credit issuers, so it's getting harder to actually go anywhere else. You've got HSBC, Citi, Chase, TD and a couple others.

Of course, that's part of why we got into this situation. With fewer big banks owning everything, it means a hit on one effects everything ten-fold.
 

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... at the old, ballgame!
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1,061 Posts
The other thing about HSBC is they never let go. We financed the carpet in our house 15 years ago with a 90-day, no interest loan through the carpet company that turned out to be an HSBC loan. Payed the loan off in 60 days. The loan/line of credit still shows up as active with a 0 balance on our credit report, after 15 years. Give it up, already!
 

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My hat is made of tinfoil
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20,826 Posts
Cash is king.
No interest, no credit card numbers to get stolen and abused.
No BS.

And 99% of the time, you can wrangle a nice discount when you buy stuff cash.
I save a lot buy cash, as I can usually talk the seller into a nice discount on whatever i am buying.
 
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