Is this legal or sound suspisious?

What is the name of your state? Arizona

Okay here's the deal and a little background to get the picture.

I'm in my early twenties, and have really good credit so far. But I do have four credit cards. I make payments every month on time, without fail. I've never over-drawn my account or even been late with a payment. However I'm getting married next month so I've only been making the minimum payments on the credit cards due to the extra expense of the wedding planning. I got a letter from one of my credit companies stating that due to the fact I'd only been making the minimum payment they were raising my APR from 9.9 to 23.9%! This is the rate I would have paid if I had defaulted on the account TWICE! Can they legally do this when I've always paid and have good standing with them otherwise?

I also called to ask if the new % rate was on new purchases or on the entire account as it stands. They told me it is on the entire account. I asked them to resend a copy of my contract with the part that states paying the minimum is grounds for charging me the default rate...that was 4 weeks ago and I still haven't received anything...except the increase in my APR!!!

Thanks

[Shay-Pari'e]

It does sound odd, and I personally have never heard of it. I am going by your post, and that these are the true facts.

What you need to do since you have good credit, is consolidate all your cards into one at the best interest rate you can find. There are plenty of companies that would love to do this, if you are in a good credit score. Your getting married, why mess with this company anymore?

Again, I have never heard of increasing your rate because you are making minimum payments, that is kind of the idea with credit card companies, they make more money that way.

Look at all of your agreements with these credit holders, as in**************the fine detail with regards to increases.

If you really have good credit as you say, get all your loans wrapped into one. Consolidate them all and get out of under all this interest you are paying. I and my husband hold a check card that can be used as a visa for emergencies and reservations and such, we pay no interest to anyone except our vehicles, and that is at 2.9% on 3 vehicles, and our home loan..

My Motto if you are interested in it is, "If you don't have the cash do not buy it". I am not preaching to you, but this is one of the first things we decided upon getting married.

Consolidate at a lower interest rate.

[bigun]

Yes, it is legal. Read the notice again. Their should be some language allowing you to close your account and pay off the balance on the orginal terms if you respond in writing by a certain date.
You need to take a hard look at your finances. If you've got those cards nearly maxxed out, this will not be the only letter you get about a change in terms. You're living above your means. Get those cards paid down ASAP.

[JETX]

Bigun is correct.... and as usual, paridise is just guessing.

[Shay-Pari'e]

Originally Posted by JETX

Bigun is correct.... and as usual, paridise is just guessing.

(QUOTE)Look at all of your agreements with these credit holders, as in**************the fine detail with regards to increases.(QUOTE)

I'm already looking into consolidating my finances...its really not that bad because the limit of the cards is minimal to my income. (on purpose so I wouldn't have these problems) I have looked into the paperwork and agreements that I have, there is a paragraph about them being able to increase the APR, but only if I default on the account. Which I haven't, so why is it legal for them to change terms of my account when I haven't done anything other than pay them on time? Why can they change terms without reasonable cause. It just doesn't sound like a good reason, logically or legally.
Thanks for the advice so far though....I plan on cancelling the card as soon as the loan is approved. Just looking to see if I should warn friends and family with same CC company.

[bigun]

I'm sure your situation is like everyone else who has a cc. From time to time they'll send an adenddum to your agreement and stick it in the billing envelope with the dozens of other pieces of crap that dall out when you open the bill. I'm sure if you inquire they'll send you a copy.
The best warning you can give friends and family is, don't live above your means and don't carry a balance. That way, the rate won't matter.