Capital One to Lift Credit Card Interest Rates

Thanks to recent credit woes that have rocked financial markets worldwide and put the mortgage industry in a chokehold, Capital One has reacted with higher interest rates on their credit cards.

Pam Girardo, a spokeswoman with Capital One Financial confirmed the news Friday that Capital One card holders would soon be receiving notification via mail that their credit card rates would rise.

It is not known how much interest rates will rise, although one website reported an example would be as steep as 4.99% to 13.99%, which is certainly cause for alarm.

Girardo did not say how many Capital One customers would be receiving the revised terms, but did say it was “not the majority”.

Girardo referred to the move simply as “standard practice” and noted that the notification is a move to be upfront with Capital One customers.

Capital One card holders will also have a certain period of time to pay off their balances before the new interest rates set in on their credit cards.

The move comes on the heels of my earlier report about changes in the Discover cardmember agreement.

There’s a good chance that many other credit card companies will follow suit in the near-term, as credit continues to be a liability for many banks and financial institutions nationwide.

Capital One also has a mortgage unit, which is in the process of a massive layoff of about 2,000 workers throughout the country.

Related Topics:

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2. Credit Card Interest Rates May be Capped at 16 Percent
3. Capital One to Report Credit Limits to Bureaus
4. Credit Card Issuers Promoting Fixed Rates as Prime Set to Move Lower
5. Credit Card Cancellation Rates Down