29.24% is fairly average for a credit card these days, even what some call "super prime" cards like Chase Sapphire Reserve are in that range. Interest rates shot way up. Credit union cards that were as low as 5-6% a few years ago are well into the teens today. You said you always pay your statement balance, so it's pretty moot. But if you need to carry a balance and are otherwise qualified, I'd just apply for something with a 0% balance transfer offer when and if you needed to carry a balance.
@K-in-BostonWhile rates have gone up quite a bit I would still view 29.24% as the high end of rates for prime or "super prime" cards. Most of the major banks have their worst rate for a prime or super prime card around that 29%-29.99% range (I think they don't want to cross the 30% barrier on those), with usually something in the 19-21% range for the best profiles (probably not too many getting that rate) and maybe 25-26% for those that aren't quite as strong but still not weak enough to be a borderline approval.
That being said, I tried to do a quick google search to see if there's any data on new card rates (not rates in total) and it seems to vary by source so maybe I'm wrong lol. Forbes survey of 250 cards was 27.89% and Investopedia's survey of 300 was 24.37%. From the looks of Investopedia's survey they may not have looked at some of the sub prime variants of prime cards (ie no sub C1 QS and S1 that are over 30%). I'm now wondering if maybe what's going on is that when there's 3 possible rates for a given card, maybe it's a higher percentage of people getting the highest rate than previously.
@chuckwood wrote:I have had my FNBO account for several years. I don't use it alot but I have it in rotation and always pay statement balances. I recieved a letter today from FNBO stating that they are raising my APR in June from 20.24 to 29.24. The letter just states they are raising it to what I might recieve on a similar card today. I don't carry balances so it technically will not affect me but the thought of that APR is scary. I am considering closing the account if they don't rethink that hike. Am I overreacting? I have not added or changed anything credit wise in almost 2 years.
Yes you're overreacting. Especially since you don't carry balances.
Sadly or gratefully I could not even tell you what my APR's are on ANY of my cards....too worried about the perks and the reward amounts.....paying in full each month has it's privileges.....
Yup did same to me, i terminated my cards with them over it. Already moving to replace the lost CL.
https://ficoforums.myfico.com/t5/Credit-Cards/FNBO-Bucks-Back-Visa-Card-Holders-Beware/td-p/6753813
@chuckwood wrote:Thanks everyone for your input. Just for giggles I looked at my other cards and the highest apr on all my other cards is 24.74 so the 29.24 is alittle excessive. So then looked at there lowest they offer on new accounts and that is 21.24. So I don't know where they came up with a 9 perent increase. So I called with a level head and asked why and if there was anything that caused the increase. They told me sorry that they are working on adjusting all accounts and they could not change the new rate. So I figured if they are going to play that game I don't want to be apart of it and closed the account.
Thanks for letting us know how it all played out.
This is why it's good to diversify.