Comments on: Wells Fargo Raises Interest Rates

By: Justin

Justin — Tue, 23 Feb 2010 11:05:25 +0000

Well Wells fargo is lying. I know several people whose APR was increased a LOT more than 3%. My mother is one of them. Her’s went over double! She’s now sitting at 29.99%. When she called complaining they told her basically tough, close your account. She never was late, never had over balances, & her credit score is 670+. She’s disabled, and cannot afford to pay her balance magically off in one night. I have another friend in the same situation, the way I see it Well’s Fargo strategically hit people they felt would not be able to pay their cards off immediately, to [expletive deleted] them as much as legally possible.

By: Balance Transfers Helper

Balance Transfers Helper — Sat, 13 Feb 2010 22:07:31 +0000

Rod, Ordinarily, the best option would be to do a 0% balance transfer. With your credit score, you should be able to get a 0% for a year. This should bring your payments down and help you chip away at the debt. If you can't get a 0% balance transfer credit card, you should strongly look into credit counseling. Basically, they work with your banks to get your rates lowered. It might not be the ideal option, but at 22%, you're facing an uphill battle and credit counseling may be the best way to get you out of the hole. For credit counseling information, I would check of www.nfcc.org, which has information about local, non-profit credit counselors.

By: Rod

Rod — Sat, 13 Feb 2010 04:02:46 +0000

I need advise from someone please.
Wells Fargo is going to raise my interest rate from 1.9 promotional which I have had for 1 year and will expire this year. I called to get it extended and they refused. They will raise it to 22% making my payments from 330 to 780.00 which I cannot afford because I was layed of 2 months ago. My interest a month will be 500 dollars! I don’t know what to do. I have home ownership and cannot file for bankruptcy because i have my home as an asset and do not want to take out a home equity loan. Who can advise me please? I am desperate. ..

By: Balance Transfers Helper

Balance Transfers Helper — Fri, 13 Nov 2009 16:01:03 +0000

Teri,

You are right to pose an objection, as I re-read my response and noticed I was unclear. The term risk-based pricing is tossed around by banks as an excuse to raise rates and covers everything from individual risk to interest rate risk. In cases where people have pristine credit, the bank is mitigating against the risk that comes from the fact that they cannot raise rates arbitrarily after February. Thus, the risk has less to do with the person than with the lending environment.

I also don’t want to give the impression I agree with this. Its just become an unfortunate post finanancial meltdown reality.

By: Teri

Teri — Thu, 12 Nov 2009 21:07:46 +0000

You wrote, in response to Christa, that her small rate increase is likely the result of “risk based pricing.” Yet, as I pointed out in my earlier posts, we have nearly perfect credit scores, own our own home, have almost no debt (a car loan at 0% because Toyota at least recognizes we’re good risk), a very large savings account, and longstanding employment. And still WF sent us the form letter stating our rate would increase from 4.90% fixed to 14.65% variable, as I noted above.

So how do you reconcile your responses to me and to Christa? You don’t even know what Christa’s rate started at- she could’ve been at 9% or 10% already…. so now all of a sudden the rest of us posting here are credit risks?

I don’t think it has anything to do with traditional “risk based pricing.” If it did, we’d still have our 4.90% rate, as there is zero chance of us defaulting. The day after I last posted here, WF posted record gains. The rate increases are because the good (or great) customers need to be squeezed harder to pay for the irresponsibility of those now receiving a bailout (or who are defaulting).

So I respectfully disagree with your statement to Christa.

By: Balance Transfers Helper

Balance Transfers Helper — Tue, 10 Nov 2009 17:55:47 +0000

Linda, Unfortunately, 12.9% is a good rate these days, though obviously a joke compared to 5.9%. If you are carrying a high balance, consider a card that offers a 0% balance transfer deal for a year and use that time to pay your debts down as quickly as possible. If you don't owe a bank money, you don't have to worry what your interest rate is. You can compare balance transfer offers in the main section of Smart Balance Transfers.

By: Linda Burns

Linda Burns — Tue, 10 Nov 2009 06:31:26 +0000

I have been a Wells Fargo customer for a very long time. I never miss a payment, am never late, and always pay more than the payment due. They more than doubled my rate from 5.9 percent to 12.9. I asked why and they said it was so they would not fail as other banks have. I am closing the account and am trying to find what is the best type loan to take to pay it back. I am looking for another bank. I love the people at my bank as they are helpful and very efficient, but I obviously do not want to take such abuse as this rate scam from the corporate offices. The employees at the bank told me their interest rate was higher than mine. I think that is disgraceful!

By: Balance Transfers Helper

Balance Transfers Helper — Mon, 09 Nov 2009 18:01:34 +0000

In all likelihood its a result of risk based pricing. Credit card companies use models to determine the likelihood of default and base this on numerous factors. You’re one of the fortunate few that seems to have escaped the large increases.

By: christa

christa — Sat, 07 Nov 2009 00:01:43 +0000

Mine is only going up 1.5%

I haven’t the slightest idea why the numbers on this thread are so different…

By: Balance Transfers Helper

Balance Transfers Helper — Sun, 01 Nov 2009 19:54:50 +0000

Choppper,

Not a huge fan of Walmart or Jimmy Carter, but credit card rates really should be rolling back and not up to their highest legal limits.

By: Balance Transfers Helper

Balance Transfers Helper — Sun, 01 Nov 2009 19:51:40 +0000

Robert,

If it makes you feel better, you still have a great interest rate. Many people in your situation are getting offered rates in the high teens. And lest we forget Citi customers who are getting offered 29.99%!

I think you make a good point. An opt out can hurt credit scores and poses a problem for people with just one card. But in a few months or a year, the companies that burned us will be asking us for our business back. And after everything they’ve done, they’ll need to offer better rates than before.