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Navy Fed Credit Card Interest Rate

R

ray25017

Member
Did anyone else get the letter from Navy Fed stating that they're jacking up the interest rate?

I have a Navy Fed Visa NRewards card (have had the card / been a member since '96). Got a letter from them today saying that the interest rate was raising from 10.9 to 13.9 percent due to new legislation (they're moving to a 'variable rate' system, apparently).

Anyways, it doesn't bother me from a money standpoint (the card only has 50$ charged on it), but in principle it pisses me off. Raising an interest rate on long-term, good-standing customers (who have NEVER been late or over the limit) is just bad business.

One more reason to keep using USAA, I suppose.
 
Fog

Fog

Old RIOs never die: They just can't fast-erect
None
Contributor
FWIW, NFCU is a fine company, but they've got maybe more than a 10% gross margin by charging you 13.9%. And being a credit union, they pay no (zilch, zip, nada) federal income taxes. USAA, on the other hand, has lower rates and pays federal income taxes as a "for-profit" C corp.
 
DanMa1156

DanMa1156

Is it baseball season yet?
pilot
Contributor
This is becoming standard across the credit industry right now as new legislation effectively pushes the credit lenders to raise interest rates, not to mention, credit is not exactly the easiest thing to obtain anymore. BoA just announced yesterday that a lot of their free cards were going to start having fees up to $99/ year on them just to use them. Unfortunate right now, but certainly not uncommon.
 
scoolbubba

scoolbubba

Brett327 gargles ballsacks
pilot
Contributor
USAA bumped my rate from 8.3 to 9.9 a while back, doesn't really affect me because I don't carry a balance. Let them make their money off some other sucker.
 
Spekkio

Spekkio

He bowls overhand.
ray25017 said:
Did anyone else get the letter from Navy Fed stating that they're jacking up the interest rate?

I have a Navy Fed Visa NRewards card (have had the card / been a member since '96). Got a letter from them today saying that the interest rate was raising from 10.9 to 13.9 percent due to new legislation (they're moving to a 'variable rate' system, apparently).

Anyways, it doesn't bother me from a money standpoint (the card only has 50$ charged on it), but in principle it pisses me off. Raising an interest rate on long-term, good-standing customers (who have NEVER been late or over the limit) is just bad business.

One more reason to keep using USAA, I suppose.
Click to expand...
This is why I stay away from variable interest rates.
 
nugget81

nugget81

Well-Known Member
pilot
I don't know about Navy Fed, but USAA will temporarily (for one year) lower your APR to 4.0% after a PCS move. It never hurts to ask them to match it.
 
EODDave

EODDave

The pastures are greener!
pilot
Super Moderator
I got the same letter and just told them to close the account. I didnt have a balance so it was no big deal. USAA just lowered mine and Discover said it wouldnt change (ie put a freeze on) any rates just because of the new legislation starting next year. I have a car loan with NFCU and just called USAA to refiance it. Really thinking about telling NFCU to go blow. I also closed out my wifes Chase card when they pulled the same BS as NFCU. Even if you have a balance, close it so they cant jack up the rates. Kinda bullshit that a CC company can change (raise) the interest rate on something you already bought. I say tell them to go F themselves before they F you.
 
R

ray25017

Member
Dave,

I'm right with you except the convenience of depositing/cashing an occasional check or using the coin machine are nice, considering USAA doesn't have locations. The only reason I won't close my NFCU account like you is to avoid the potential couple point FICO score drop that may result from having less available credit. (I may be in the housing market next year so that stuff matters to me right now.)

Also, I saw online that Chase was one of the banks that jacked their rates...
 
Clux4

Clux4

Banned
I get 11% on NFCU but almost 15% on USAA. Looks like the reverse is the case for everyone else. I wonder what I am doing wrong.
 
DanMa1156

DanMa1156

Is it baseball season yet?
pilot
Contributor
EODDave said:
I got the same letter and just told them to close the account. I didnt have a balance so it was no big deal. USAA just lowered mine and Discover said it wouldnt change (ie put a freeze on) any rates just because of the new legislation starting next year. I have a car loan with NFCU and just called USAA to refiance it. Really thinking about telling NFCU to go blow. I also closed out my wifes Chase card when they pulled the same BS as NFCU. Even if you have a balance, close it so they cant jack up the rates. Kinda bullshit that a CC company can change (raise) the interest rate on something you already bought. I say tell them to go F themselves before they F you.
Click to expand...

As a word of advice, and I know I'm probably going to be snickered at here for being so young, but if these are old-standing accounts, and this goes for everyone, it's not wise to shut them down as the longer you've had good credit standing with a company (even if you haven't had a balance or paid them in years), they are still lending you a line of credit with good record and it shows a good history. Your older credit lines are weighed heavily in your FICO score and having good/poor standing with them can greatly effect what types and rates on loans you'll be able to procure in the future.

Not knocking you by any means sir, but just as a word of advice to the crowd.
 
G

ghost

working, working, working ...
pilot
BE CAREFUL BEFORE CLOSING A CREDIT ACCOUNT FOR ANY REASON.

You might be upset at NFCU for raising your rate, but closing your account probably hurts you WAY more than it hurts them. This is especially true if you don't carry a balance. Closing a credit account hurts your credit in two ways. It reduces the amount of overall credit you have extended to you. This will reduce your ratio of debt owed to credit available which will make you look like a a bigger risk to other lenders. Depending on how long you have had the card before closing it, you can also shorten your credit history. All this could lead to higher interest rates when you apply for credit in the future on something like a mortgage.

You might be pissed off at the company, but a better way to get back at them is to leave the account open and never use it. The have to pay money to service the account every month (send you bills , ect), but they get no money in return from you. Take other business you have with them (saving/checking accounts) somewhere else, but leave the credit account open.

PS. The companies have the right to change the interest rate because you gave it to them. Read the paper work you signed when you applied.
 
rdjarvis

rdjarvis

New Member
Well this is terrible news! I recently got the Cash Rewards Card to pay off the last bit of flight school. :( looks like I'm going back to the ramen and eggs diet for a bit !
 
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