Dow CU Low Rate Visa Nerfed :(

[Rockysocks]

Just happened to think today how much of a unicorn this card is for the low FIXED rate of 6.9% it's known for and, upon checking the website, discovered just now that this is no longer the case as of yesterday. They did away with the fixed rate, making them variable, AND the low rate visa went from 6.9% to starting at 12.24%. I just hope they keep me grandfathered in. I would bet money I'd lose the fixed 6.9% if I ever request a CLI, too.

A moment of silence for another fallen card.

Edit: tagging @galahad15 because I know they like keeping track of low rate cards (and they introduced me to this one lol)

[SouthJamaica]

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@Rockysocks wrote:

Just happened to think today how much of a unicorn this card is for the low FIXED rate of 6.9% it's known for and, upon checking the website, discovered just now that this is no longer the case as of yesterday. They did away with the fixed rate, making them variable, AND the low rate visa went from 6.9% to starting at 12.24%. I just hope they keep me grandfathered in. I would bet money I'd lose the fixed 6.9% if I ever request a CLI, too.

A moment of silence for another fallen card.

Edit: tagging @galahad15 because I know they like keeping track of low rate cards (and they introduced me to this one lol)

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Good catch. I applied twice for that card and was turned down both times. And now it's gone.

I agree with you that you should just stay off their radar.

[Curious_George2]

Good catch @Rockysocks. Thanks for posting.

I have this card and it still shows my APR as 6.9% fixed. (Side note: Dow CU shows the APR right in the mobile app. No need to dig through statements to find it. I wish more issuers did it this way.) Dow is a very member-focused CU, so I'm guessing they will let those of is who have the Low Rate Visa keep that rate. Time will tell. 

[Rockysocks]

UPDATE: I called customer care, and she informed me that current accounts will be impacted beginning in March. She said all purchases before March 22nd will be be fixed 6.9%, and all purchases after will be at the new variable higher rate. I kindly asked if she could verify with management, and she said it's already been verified and read me that info about purchases. If someone wants to make a call to get that double-verified with a different agent, feel free lol.

[TheRedHat]

Stupid question. How can they legally just change a fixed rate to a variable one since it is...you know...fixed? 

[Rockysocks]

Not stupid at all but I am not sure. Probably in the fine print we sign! Lol

[maklovers]

Well, I got the low rate Visa 2 weeks ago and with these news kinda sad  

It is what it is, can understand why CU did this step.

Hoping AOD will stay strong much more time and don't touch 7.49 %

also to someone who still hunts for low rate CC - there is LOCFCU Visa with 9.75 APR.

This CU are nationwide.

https://www.lcfcu.org/home/fiFiles/static/documents/LCFCUs-Visa-Credit-Card-Agreement.pdf

[CreditCuriosity]

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@TheRedHat wrote:

Stupid question. How can they legally just change a fixed rate to a variable one since it is...you know...fixed? 

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Existing balances stay at lower apr and new balances charged after would be at new higher rate.  They will give notice and if ones doesn't like the changes they cancel the card just like any other issuer that increases rates due to fed rate increases.  Most cards were impacted by these rate increases a few weren't and apparently this one was behind and now making up for it.  This particular CC had razor thing margins before rate increase for people that carried balances considering fed rates and simply wasn't worth risk/reward to them anymore likely.

[Curious_George2]

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@Rockysocks wrote:

UPDATE: I called customer care, and she informed me that current accounts will be impacted beginning in March. She said all purchases before March 22nd will be be fixed 6.9%, and all purchases after will be at the new variable higher rate. I kindly asked if she could verify with management, and she said it's already been verified and read me that info about purchases. If someone wants to make a call to get that double-verified with a different agent, feel free lol.

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Bummer. The low, fixed APR was the only reason to have this card. It's right there in the name. It becomes useless if they do what this rep described. I haven't canceled a credit card in decades, but I'll probably cancel this one. 

[Dadof31978]

reality is if you are remotely worried about this issue, you shouldn't be using credit cards unless you like to be broke.