Advanta Credit Card Company Complaint - Rate Jacking
PENNSYLVANIA -- A few months ago I reviewed my Advanta business credit card and noticed that my interest rate was increased to an unbelievable 27.19% from 7.99%, along with a 2.99% fixed rate that I had for another portion of my loan that was supposed to be "guaranteed" for the life of my loan!
I called Advanta to find out if it was a mistake and they informed me that they sent me a letter several months ago explaining the rate increase and what the new rate would be...funny I never recalled receiving that letter...I think I would remember that. They told me the increase was NOT because of my credit history (I received my free credit report which was excellent, showing no late payments, great credit score and solid debt to equity ratio) but they proceeded to expalin some convoluted formula that they used saying I "could" become a bad credit risk in th future???
So, based on Advanta's "logic" they would rather get rid of long standing customers with great credit history and keep the marginal customers that have to pay their "loan shark" rates and
have a higher propensity to default.
I told them that I had decided to transfer my balance to another credit card company with a 7.25% rate and a 0% intro for 12 months and no transfer fee. They didn't respond or even OFFER to lower my interest rate. They DID tell me tat I could cancel my card and in 3 months reapply as a new customer and receive their 6.99% rate????? Go figure. In the meantime they sent me "convenience" checks with a 3% transfer fee and a 27.19% rate!!!
Needless to say I will NEVER apply for credit card or deal with Advanta again... they must be having very bad financial problems.
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