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Advanta Business Card / Huge APR Increase

1 Salt Lake City, UT, United States Review updated:
Contact information:

I started a small business a little over a year ago and was told that Advanta was the best small business credit card. I applied and received one with an APR of 7.99%. I used the card for my business and was pleased with the credit limit I was given. I made all payments on time, always more than minimum and had a couple of my business expenses automatically paid with my Advanta card. My August 2008 statement arrived I realized that my purchase APR suddenly shot to 20.39%! When I called to find out why, they told me, like they've told others I've read about here, that due to a "recent evaluation" my credit worthiness had changed. No other explanation. After three phone calls, I was told I could close my account if this new APR did not work for me. No concern at all about the well-being of my company or that my business was put under unwarranted stress due to these changes. They stated that they had sent me a letter telling me about this change and giving me the opportunity to "opt out". I never received this letter, but did receive an envelope full of convenience checks to use on my account to jack up the balance. Advanta has become a predatory lender. Beware!!

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  • Ed
      14th of Jan, 2008
    0 Votes
    Advanta Business Card - Overcharging consumers!
    Advanta Business Card
    United States

    Last month I got a statement from Advanta for $4032. I paid immediately $3932 leaving a $100 balance. This month they charged me $36 in interest fees. Is this legal? Banks and Visa/Master Card charge the merchants about 3% on sales charged to (Rewards Cards) like the one I had. so they from my advanta card purchases over $120 last month. Is there a limit to corporate greed? My Advanta card is in the trash where it belongs.

  • Cr
      19th of Jan, 2008
    0 Votes

    Quit your socialist whining. You have a CONTRACTUAL relationship with that company. READ contracts before signing them

  • Bo
      18th of Apr, 2008
    0 Votes

    I am so disappointed with Advanta...we had three cards with them just for balance of $3.96 they charged me $19.00 I called and asked if they can remove it as it was an oversight I nevre had late payment charged thousands of dollars...but they say they can not remove it I was late 12 days...it was just an oversight...I am going to close all my three accounts with them...hope and pray they go out of business soon..

  • Le
      6th of Aug, 2008
    0 Votes

    Read all the other complaints about this company. Send letters to your local consumer affairs. Post everywhere you can.
    These thieves are worse than the sub-primes and shouldn't exist!

  • St
      22nd of Sep, 2008
    0 Votes

    As a card holder since 2006, I had a 7.99% rate until my last statement showed 30.08% !!! I called and was fed the same BS. They told me my rate changed due to my credit score, payment history and the economy! My credit has not changed. If anything, it improved. I have never had a late payment with Advanta. They said I received a letter showing the rate increase and had a chance to opt out. I never received this letter. After getting off phone with Advanta, I quickly transferred my balance to another credit company. I will never do business with Advanta again.

  • St
      22nd of Sep, 2008
    0 Votes

    I will send a letter to my state Attorney General. As a card holder since 2006, I had a 7.99% rate until my last statement showed 30.08% !!! I called and was fed the same BS. They told me my rate changed due to my credit score, payment history and the economy! My credit has not changed. If anything, it improved. I have never had a late payment with Advanta. They said I received a letter showing the rate increase and had a chance to opt out. I never received this letter. After getting off phone with Advanta, I quickly transferred my balance to another credit company. I will never do business with Advanta again.

  • Mi
      22nd of Sep, 2008
    0 Votes

    I'm sitting on hold with Advanta as I type this. My story is exactly the same - I've had this card for years and I've been very happy with them - and suddenly my August statement showed a rate increase from 7.99% to 25.08%. I never received this so called letter they sent out either - and the person I talked to last week said they would have a supervisor get back to me in 24 hours. That was 5 days ago.

    If I had ever missed a payment or been late on a payment - or even just paid the minimum amount due for a long period of time I could understand some sort of increase. But 7.99 to 25.08 with no warning and no other reason than "economic conditions" (that was from the customer support person last week) is completely unacceptable.

    This balance will be paid and the card will be canceled faster than they'll ever be able to get back to me with an explanation.

  • Gr
      1st of Oct, 2008
    0 Votes

    I totaly agree advanta sucks and there should be a class action against them. I was never told about the interest rate increase, or I would have quickly made changes. I have been paying since august a 25 percent premium which comesto over $500 in finance charges each month. I was at a fixed 7.9 % and loved this card until they lied to me and everyone else. MY payments are setup on autopay, so I know I was not late and I just checked my credit and it is higher then it was a year ago when I got the card(760) They told me it could have increased because of economic changes. That is just bull. They need to be stopped!

  • Gr
      1st of Oct, 2008
    0 Votes

    One more thing, it seems srange that everyone had this problem in august!

  • Ca
      6th of Oct, 2008
    0 Votes

    Posted from another Advanta complaint forum.

    Consumer's Concern
    I just opened my Advanta bill today only to find my interest rate had gone from 7% to 33%!!! I'm not behind on my payment at all. I called customer service and spoke to someone in another country and she had no useful information for me. Just that they do this. This is insane! My 7% interest rate was not promotional. Can they just randomly raise my rates? My monthly payment has now more than doubled!

    My Response
    Yes, they can do this (they reserve the right to change the terms as long as they notify you). As you can see our financial institution is not very regulated and this is why we are in this financial crisis. You should not let them charge you this ridiculous rate, I would look for a balance transfer promotion from another credit card company and close Advanta ASAP (chase, capital one and bank of america usually have good promotions)

    Instead of the banks trying to work with the consumers, people like you and I that pay on time, they are screwing us over and in the long run putting themselves in a predicament where the consumer is not going to be able to make their minimum payments. The economic situation is going to get A LOT WORSE because of this. The taxpayers are bailing out these financial institutions and at the same time the financial institutions are taking advantage of us by raising their interest rates.

    I am livid with Advanta. My interest went from 7.99 FIXED to 26.31 % on purchases and 36.31% on cash advance. The minimum payment due last month (September) on my account was $ 131 and I religiously send them $ 200. This month (October) my minimum payment went up to $191. This is ridiculous.

    I called customer service today asking why my interest rate had gone up so drastically. Her response "Advanta has made this assessment based on information it receives from your account and the information it received from the Credit Bureau and it has assessed that you are now a high risk customer. " WHO ARE THEY KIDDING? I pay on time and above the minimum payment, my credit score is very good and my income has not changed. In conclusion, they are trying to stick it to whomever they can. I closed my account and will pay off the balance immediately. Hope you find this information useful. Have a nice day, Catherine

    Here are a few sites with useful information:

    http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/

    http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/9waysToBuildAKillerCreditScore.aspx

    http://financialplan.about.com/od/creditanddebt/a/RisingRates.htm

    http://financialplan.about.com/cs/creditdebt/a/GetOutOfDebt.htm

  • Ca
      6th of Oct, 2008
    0 Votes

    I have been a cardholder for a few years and I am ENRAGED with this ADVANTA situation and I did not see that letter where they give you the option to "opt out".

    I just got off the phone with Glen, Executive supervisor (whatever that means the guy was reading his answers to me, which I asked him to email me and he declined) from Advanta. I wrote down my questions before calling because I wanted to make sure I asked the right questions.

    Why has my interest rate gone up?
    due to the information we have received from your Advanta account, credit bureau and the FINANCIAL SITUATION we are in bla bla bla...(the guy was reading)
    Have I defaulted on my payments?
    No
    So I have not done anything to make my interest rate go up?
    No
    Has my interest rate gone up because of the financial situation we are in?
    Yes

    Earlier today when I closed my account, no one tried to talk to me into staying with them, I asked them to close my account and that was the end of that. "Be sure to ask your issuer to report to the credit bureaus that the account was "closed at customer's request."

    First taxpayers BAIL OUT these multi-million comapanies and we don't get a penny from that and now we are getting SCREWED - by the same people we are keeping in business. This has to stop!!!

    Due to this attitude from the banks the situation is going to get much worse and we are the ones that are going to suffer.

    I agree with everyone here - this is bull!!! Close your account with ADVANTA they have no consideration for anyone and don't care if they put a loyal paying client on the street. My account is closed and will be paid in full by the end of this week. And there is no way I will open another account with them. They can go bankrupt for all I care ... oh no that wouldn't happen because my tax dollars will bail them out. I thank GOD that I am able to get out of this situation but what about all those people that don't have the information or the means to get out.


    Please spread the word to all your family and friends and tell them to Prepare for these rising interest rates !
    I emailed my previous post to all my contacts and hopfully they can be better prepared!

  • Er
      8th of Oct, 2008
    0 Votes

    A bunch of crooks. I went to pay my bill online today and it showed a) I had no credit balance and b) my payment had gone up $200 per month - I have not had a purchase on this card in over a year.

    Laurie explained that they had receive a statement back in the mail, thus, they cut my credit limit off so I would contact them. She stated that she would gladly reinstate my credit line now that I contacted them and reverified my address. Then I asked her why my payment had increase, she said we sent you a letter out after our review on August 13th... I never got that. My interest rate went from 7.99 to 26.99 - what the heck??? She couldn't tell me why exactly, however, due to bank criteria, my interest rate changed. I asked her specifically what changed, she could not answer, exactly. Her first response was my credit. My credit is a 793, how can that play a part??? Then she said there is other criteria but were only for bank purposes.

    I asked to speak to a supervisor. Through the song and dance routine, I finally got through to Travis. His basic response was the same, there was no additional information that he could give me. I asked to speak to his supervisor (Debra), she wasn't available, but if I wanted to write a letter, here's the address... Then he offered the President of the banks name - John Moore. Guess what, I'm a bulldog. John and his company haven't seen the last of me.

    This is why the country is in such poor shape! The greedy people in this world take advantage (advanta - without the "ge", isn't this ironic?) to get rich off of those who are looking to make an honest living. How can people work for such a corrupt company and go to work every day???

  • Ca
      16th of Oct, 2008
    0 Votes

    My letter to the Senator (Florida) !

    Senator Nelson,

    I wrote last week to you via email regarding your position on the CARD ACT, Credit card reform proposed by Senator Chris Dodd, not the bail out. I agree with your position on the bail out and support it.

    Chris Dodd proposed the CARD ACT 2008 which regulates credit card companies’ ability to charge excessive interest rates, high fees, Prevents issuers from changing the terms of a credit card contract for the length of the card agreement (ban on unilateral changes to card agreements); Apply Interest Rate Increases Only to Future Debt, Prohibit Interest on Fees, Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholder’s behavior with respect to that card (universal default ban);Require Prompt and Fair Crediting of Cardholder Payments


    ADVANTA CORP credit card raised my interest rate from 7.99% FIXED to 26.31%. When I called to find out why my interest had gone up so drastically they blamed it on the ECONOMY. I closed this account immediately. What is worse is that there is no law to prevent the credit card companies from doing this to us (the consumer). ADVANTA and other credit cards do not consider consumers that have MODERATE interest rates and pay on time PROFITABLE. The mortgage crisis is carrying over to the credit cards, and credit card companies are increasing our interest rates substantially to "squeeze" as much money as possible from us to make a PROFIT. Credit Cards are taking advantage of the financial crisis we are facing and the deregulation that exists in the financial market to raise interest rates. ADVANTA is a business credit card and their increase in interest rates is contributing to individuals and small businesses filing for bankruptcy and leaving others drowning in debt. Credit Cards increase in interest rates is hurting the ECONOMY tremendously; people are unable to pay down their debts with these high interest rates placing ADVANTA and other credit card companies in a predicament where people are not going to be able to make their minimum payments. The middle and low class are going to be paying more FEES for defaulting on their payments. People will be paying more money to the credit card companies and will have more debt instead of less because all the money is going to pay the high interest rates and not the principal. People will be left with less spending money, slowing down the already hurting economy.

    This practice is unjust and unethical and their should be laws to protect consumers from this kind of abuse.

    Do you support the CARD ACT? Is there a better Credit Card Reform in your opinion? How can I effectively support a legislation that aims to reform credit card industry abuses?

    I understand the CARD Act is not the solution to all the problems with credit cards but I believe it to be a step in the right direction.

    http://dodd.senate.gov/index.php?q=node/4401

    Another Credit Card Reform Proposed by Congresswoman Carolyn Maloney

    http://maloney.house.gov/index.php?option=com_issues&task=view_issue&issue=298&Itemid=35

    Thank you.


    Additional information:
    I paid half of my ADVANTA debt and transferred the rest to Capital One at a 0% interest rate for 12 months at a cost of 3% one time fee.

    I hope this link helps. (Be cautious in playing the credit card game)

    http://www.fivecentnickel.com/2007/02/27/how-to-profit-from-0-balance-transfer-credit-card-offers/

    We are less than 30 days away from elections. And our VOTE is our most powerful tool right now. Take the time to visit each candidate’s website to learn the issues that affect us and let’s fight back with our vote! Only one candidate addressed Predatory Credit Card Practices.
    http://www.barackobama.com/issues/economy/#credit-cards


    Vote for the candidate that will PROTECT us from these predatory lenders!!! Also, contact your Senator.

    Best of luck to all of you, and I hope you all find a way out of your high interest rates.

  • Ib
      16th of Oct, 2008
    0 Votes

    If you believe you are the victim of unfair interest rate charges, late
    fees or other penalties, or deceptive marketing, and the credit card
    company fails to address your complaint, fi le complaints with your
    state Attorney General’s offi ce (www.naag.org) and the national Offi
    ce of the Comptroller of the Currency (which regulates most of the
    biggest credit card companies and will forward your complaint to a
    diff erent regulator if needed).
    Th e Offi ce of the Comptroller of the Currency
    Website: www.occ.treas.gov/customer.htm
    Email: Customer.Assistance@occ.treas.gov
    Phone: 1-800-613-6743
    Address: Customer Assistance Group
    1301 McKinney Street, Suite 3710
    Houston, TX 77010

  • Mo
      27th of Oct, 2008
    0 Votes

    I, like everyone else am just outraged by this whole Advanta rip off! I received my statement last week and to my absolute shock my finance charge for the month was close to 5 times the average amount I had been paying in the previous months. In my mind there was no good reason for this, I 've maintain my excellent credit rating, I've never been late with a payment on this account or on any of my other CC accounts w/ other companies, in fact I pay my Advanta card online twice a month! Never been over limit! My 7.99% apr shot up to over 31%! Believing this must be some kind mistake, I called Advanta and spoke with a man who after I explained my issue, proceeds to tell me that I was sent a letter last month warning of this (which I never got!) and that he could credit me $100 of the charge ( which still left me with a finance charge that was more than twice my usual!). I asked him why this was happening he simply explained that it could be one of many factors including my credit rating and the economy! Well I know it wasn't my credit rating, and I don't recall reading in their 'Terms of Agreement' policy anything referencing the "economy" as being a factor in hiking up their apr! I will not close this account because I know that could have a negative impact on my credit score. I will continue to use this card and rack up points, but I will pay off my balance in full each month so I will not incur any finance charges! Take that Advanta crooks! Someone seriously needs to stop these crooks from their demonic 'bait and switch' practices which can deal a fatal death blow to an unsuspecting small business. SHAME ON YOU ADVANTA FOR EVEN TO THIS DAY CLAIMING TO BE A 'SUPERIOR SMALL BUSINESS CREDIT CARD'! You know I did all kinds of crazy research looking for the best business credit card online and in talking to other small business owners, and Advanta came highly recommended! I'm sorry, I'm just pissed by the fact that my experience isn't isolated, and learning that there are tons of other small business out there who have been burned by this company in the same manner that I have is just **%&$?#$* WRONG! THANK YOU ADVANTA FOR PULLING THE RUG FROM UNDER SMALL BUSINESSES AND CONTRIBUTING TO AMERICA'S ECONOMIC COLLAPSE! YOU NEED TO BE STOPPED!

  • Ma
      26th of Apr, 2009
    0 Votes

    They did the same CRA_ to us. From 7.99 to 26.58% Said they sent notice. THEY DID NOT! Run-around on the phone -- perpetual "hold" figuring I would hang up which I did not. Arrogant SOB's on the phone. No customer service skills what-so-ever! How can they still be doing business???

    HOW DO WE GO ABOUT FILING A CLASS ACTION SUIT AGAINST THESE SOB's.

  • Ad
      14th of Aug, 2009
    0 Votes

    Advanta!

    HUMAN GARBAGE@

    DIE!

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