Advanta / Interest rate scam
I opened my Advanta small business credit card account in January and after nine months of regular, on-time payments, my interest rate was just raised from 7.99% to 25.8%. When I called and asked why, they said there were no late payments, but the rate increase was based on "a complicated formula of a variety of risk factors including credit history, other credit card payments, mortgages, car loans, etc., and that I was a high risk". They refused to tell me specifically what caused me to be "high risk".
I immediately checked my credit score, which is 777 - rated as "great" and only a 2% risk. We have no car loans, and have paid the mortgage off in full.
I suspect that this is a standard ploy of Advanta's, offering a low "come on" rate and then raising it, and has nothing to do with credit ratings.
According to several consumer credit card websites, Advanta is very popular... which I suspect will change if they continue this business practice. Too bad, because I actually liked the company, and I tend to be a loyal consumer.
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