APR changes

What is the name of your state? New Hampshire

I have alot of debt but the good news is I have ALWAYS paid on time and ALWAYS paid more than the minimum payment. I saw my credit report and there are no faults/delinquencies at all. One of my CC companies changed my APR from 14% to 18.9% without me knowing, I just noticed it on one of my bills. I called them and they told me that this summer they reviewed my credit and said I have too much debt therefor they raised my APR higher. I have carried a balence with them for a couple of years and have been paying but not charging. I have not charged on the account in 14 months. I told them to look over my history with them and explained I have always been a good customer, they agreed however will not change my APR.
Can they do this? I feel so violated. This makes me soo mad, I have been trying to pay everything off by working hard and now for what.... to pay them more in interest.
What should I do??

[Ladynred]

Tell them to stuff it and cancel the account ! Yes, they can do it, yes its legal.

This is SO typical of creditors these days. It doesn't matter if your record is pristine..if they think you have too much OTHER debt, regardless of your record with them, they will raise rates on you. An unfortunate fact of our screwed up credit/banking system. You're punished no matter what you do.

[bigun]

Woa!!!!!!!!!

Do not close that account with a balance or, you're likely to see an APR in the 20's. Also, if you close the account you may well foulup your credit utilization ratios and other creditors will raise your APR. Do you have room for a BT on another card with a lower rate?

The problem that I have run into is that as I have paid down my balances I have lowered my credit limits so that I would not go on a spending spree. So it probably looks like I am maxed out on everything because I did this. It has worked for me because I haven't used the credit cards for months. I was helping myself by controlling myself and now I feel stuck. I just want them paid off without accumulating major interest. I have recieved so info in the mail on balence transfers but then they charge fees on top of that. Any other solutions? I am in NH.

[bigun]

Boy, you have a potential problem. FICO is ratio driven. Stop lowering your credit limits and just say no to the shopping spree.
As to BT fees. Read the fine print. Most of them have $3 miniums and $45-$50 maximums. If the interest rate is low enough, they are worth a fee.
Are you using the "snowball payment method"? Pay minimums on all cards but the one with the highest interest rate. Pay as much as you possibly can and, as often as you can on that card. Another tip. Pay as early in the billing cycle as possible. Over time, that has the affect of reducing the Average Daily Balance which will save you interest cost.

How's your credit other than just owing a lot? Could you go to your bank or, Credit Union and get some sort of consolidation loan? Wouldn't recommend a HELOC though. No need securing unsecured debt and then making minimum payments for another 15 years.

Thanks for the ideas. I will check with me credit union on a consolidation loan. What is HELOC?

[bigun]

HELOC= Home Equity Line of Credit