USAA just hollered – They’re raising my credit card rates!

by J. Money on Thursday, December 18, 2008

USAA - Still love me?Yup, even my beloved USAA is fighting the good fight these days. Got a nice little letter in the mail yesterday (which may, or may not, have been cleverly disguised as junk mail) stating there will now be a minimum annual interest rate set @ 6.00% starting in Feb, 2009 :(

It’s certainly not the worst thing in the world, but that doesn’t mean i have to like it. Currently I have two credit cards that are set at “prime”, which as of 2 days ago just dropped again to 3.25%!!! It won’t remain that low forever, but it still means this new minimum will now be DOUBLE.

The good thing here is that I don’t have any balances right now on either card that would be affected by this. Here’s a quick snapshot of both cards, and what their used for and all:

  • Card #1 – the “House” card: $25,000 limit with a fluctuating balance. We put all household expenses on here (utilities, groceries, etc), and then pay it off in full each month.
  • Card #2 – the “Auto Loan” card: $30,000 limit with a locked in 3.4% rate for 1 year. This is how i financed my old school cadillac ;) I knock off around $500 a month so the balance is slowly going away. Currently it has a $4,000 balance.

So right now we’re fine…i’m just REALLY hoping that the credit limits don’t get slashed next :( I pumped those bad boys up to help our credit scores, but it seems like a lot of companies are slowly cutting back now. Oh well, i don’t have much power over it all anyways…

Oh, and I almost forgot!!! The funniest part about this whole thing was when i skipped halfway through the letter and saw, “You may reject these changes between Dec. 6, 2008 and Jan 23, 2009”. I was like helllllll yeah, thank goodness i read that b*tch! I’ll just opt out of it and be on my merry little way ;) haha…

Until i read the next header which read, “What it means if you reject the changes”. Wanna take a guess as to what was in there? It wasn’t fun, that’s for sure: Your card would get closed down, you’d lose all your rewards/points/etc, and more importantly you wouldn’t be able to re-apply for it again. Yikes! And yes, you’d still be accountable for all previous charges you already put on there ;) although it WOULD be at your normal rate, so at least you’d have that going for ya.

The moral of the story is to just read the stuff your bank sends you. It may look like junkness, but that one minor detail you miss might come back and bite you in the a$$ later. As for you USAA, you know i love ya! Can’t get rid of me that easily…

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