Kelly and I have long since kept zero balances on our credit cards. We’ve instead paid an annual fee on our card and enjoyed the perks of frequent-flier miles, free flights, and other rewards that they provide – all without costing us a fortune in interest.
Looks like our free ride is over, though. In the past few days, some of our credit card companies have sent us notices that the rates they charge for interest are going through the roof. The purchase APR will be jumping to 24.41% and the cash-back APR is rising even higher. The reason for this was clearly (and boldly) spelled out in the “other notices” section of the letter:
“The principal factor we considered in amending your account is maintaining profitability on your acccount.