"Interest Rate Was Doubled!"

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Written by: cirrus on 2011-02-18

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cirrus's review: Callout Comment After being a loyal customer for 7+ years Elan notified me that the interest rate on new purchases as of 5/1/2011 was being raised from 7.99 % to 14.99%. The reason stated in the letter is "The change in the APR on your credit card Account was made as a result of a review of your Account and our decision was based on the net level of profitability of the Account." Needless to say, I will not be doing business with Elan or Cardmember Service again. I am using some savings to pay off my card and am closing my account. I don't appreciate being treated this way after being a customer for years. Interestingly, no one was willing to own up to being responsible for this decision. The letter was simply signed "Sincerely, Cardmember Service"


Comment 1 by joeyman
Re: Interest Rate Was Doubled! User Icon on 2011-02-19

Remarks I have one as well. Mine is the "College Rewards Visa." Although my APR hasn't been doubled, it's already 19.9%, keeping in mind this was my first credit card. I've had it for about 2.5 years with only two credit limit increases. I only buy like 2-3 things per month with this card because it sucks, the APR is high, and the rewards suck; they just don't take care of their customers. Cards like this are a chore because we have to keep activity to keep them open. I use subscriptions like Netflix and the newspaper. Ha!~
Comment 2 by kdb030609
Re: Interest Rate Was Doubled! User Icon on 2011-02-19

Remarks Its amazing that elan is like that. Since they're owned by US Bank. Because US Bank isn't like that. Although doubling your interest isn't good. It is still at a more manageable 14.99%. At least it didn't go up four or five percent more. I'd call them and ask to speak to a credit analalyst. Good Luck.
Comment 3 by colonative
Re: Interest Rate Was Doubled! User Icon on 2011-02-20

Remarks Chase raised my rate on my Platinum MasterCard from 7.9% to 14.9% last year only I never received notice (and if I did, I didn't see it). Point is, the days of low, low rate cards are kind of over unless you go to a credit union or Pulaski Bank/First Simmons/Iberia Bank.

As KDB said, 14.9% isn't the worst rate but it does sting to have a great rate like 7.9% raised. I have never been a fan of Elan anyway because they issue credit cards for banks and credit unions that are not large or strong enough to issue their own.
Comment 4 by wanderer
Re: Interest Rate Was Doubled! User Icon on 2011-02-20

Remarks Understand your frustration! Like has been stated, apr's today are probably going to be starting around 14.9%+ and up. I had two Capital One Cards and they were both 7.9% (spotless record and they increased the apr's to 17.9% - I closed them out of anger since the accounts were over eight years old). No win here?! Keep your options open to pursue better cards even if you go secured and graduate with the big names.
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