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credit card rate increase with no late payments

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briz2

Guest
while paying my bills last month, i noticed my interest rate on my mbna credit card account had jumped from 15.9% to 22.9%. i have never been late on my payments, so i called to ask why the increase and they sent me a letter saying that the reason was that my recent balance compared to my credit line was high with them and i have sufficient amounts owed. they also said that the decision was partly based on information provided by equifax. my question is a two parter,first, can they check with credit companies at their will for the purpose of raising my interest rate, and can they raise my rate even when i've never been late or defaulted with them? thank you very much briz2 PS It's been many years since I've been late on any bills that I owe or have owed, and Equifax nor any other credit reporting agency has a late pay or slow pay on my record. My beacon score is over 700, so MBNA's rate increase is solely based on my income to debt ratio, which is no more than it was when they begged me to use their card.
Charlotte NC

[Edited by briz2 on 04-19-2001 at 11:06 PM]
 



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