• masterofn001@lemmy.ca
    link
    fedilink
    arrow-up
    6
    arrow-down
    2
    ·
    4 days ago

    That’s great.

    Now, explain why I just got a letter stating my always paid fully on time credit card will be increasing the interest rate by 4%.

    As the interest rates are cut by both the BoC and the Federal Reserve.

    My credit history is spotless and my score is very good.

    What the fuck is this shit.

    I’d call my MP but they’re useless.

    • cygnus@lemmy.ca
      link
      fedilink
      arrow-up
      10
      arrow-down
      1
      ·
      4 days ago

      Why do you care if you pay it off on time? Credit cards have always had horrible interest rates.

    • wise_pancake@lemmy.ca
      link
      fedilink
      arrow-up
      4
      ·
      edit-2
      4 days ago

      Banks have been trying to dump “high risk” (based on their own systems) clients with as a recession risk.

      They’re reducing credit limits and increasing interest rates to lower unsecured debt ratios.

    • SapientLasagna@lemmy.ca
      link
      fedilink
      arrow-up
      4
      ·
      4 days ago

      Oh, that’s easy. The BoC overnight rate is only one of the factors that go into the Prime Rate, which is determined by the banks themselves. The Prime Rate is also down by about half a percent.

      Credit card rates on the other hand, are set by the banks based on how much they want to rip you off. The only government involvement there is that the card has to stay under the criminal interest rate, or 48% APR.

      The current Government has proposed to reduce that rate to 35% APR, but we’ll see.

      In short, your MP won’t be able to help with your credit card, because cards are issued by the banks, not the Government. Personally, I’d love to see Canada Post get into personal banking, but it’s a bit of a pipe dream.