KMoney, it depends on the lender. The lender may or may not decide to keep the high interest rate.

Once you have your utilization down will your rate drop as well?

It's definitely your utilization. You need to transfer the balance to another card with a lower interest rate.

The only other thing that I could think off is that my TU inquiries which were reinserted may be a factor as they went from 2 to 12 or so.

The overall was 69%, however, in the last 7wks, it has dropped to aroun 42% and when the Jared/Kay report, it will be around 36%.

I just called WAMU and the first guy couldn't tell me anything except to send me out the re ason. I asked for a manager and she told me that when I got the card last year, it said that they reserve the right to change the rate at any time. She said that I must have fit into a profile band where they may expect a loss.

Translation, imo, my high balance on the WAMU card added to where the comapany is financially i.e in dire straights re their mortgage division, I've been caught in the flytrap.

Actions: Find the money to pay off this card as soon as I can. Carrying close to $4k at 23.99% is not tenable.

What's your overall utilization on all of your credit cards?

I have had no late payments since 2001. For the last 7 years, I have never been late on any of my cards not once. I am calling them right now.

If you don't have any late payments with them, do you have any late payments on any of your other credit cards?

I have had this card about 14mths. Since I have had it, my overall utilization has decreased, my scores have increased etc. Ihave had the bal on that card for about 5-6mths as most of it was BT and 2 cash advances that I did for a family member.

I learned the hard way to never, ever, ever do cash advances because when you go to pay it off, at WAMU, the money is applied to your regular balance first so you are stuck at paying off the cash advances at $23.99%. I will never, ever do that again. The person paid me off but the money went to the regular balance.

This is called universal default even though I have never been late or gone over my balances in 7yrs. The bottom of the letter said that it was due to something reviewed on my credit file and that I had the right to get a free report from TU.

Nothing has changed on my TU since I got the WAMU card, in fact, most of my other CCs balances have decreased.

I think in retrospect that you guys are correct.

Another valuable lesson to keep utilization low and don't use cards unless u have to and if you have a high balance on 1 to pay it off pronto.

I'm not going to close it as it is my highest visa/mc limit but I will call tomorrow and if they refuse to lower it, i will BT as soon as I can.

Thanks guys.

Shark6 I am so sorry

That is horrible!!! Sorry that happened to you. I have an account I just closed with them. When I threatned to cancel they gave me 3.99 on purchases till next year. I still closed it the next month. I will not be doing business with them anymore. I will let my friends know too. Thanks for the info shark.

it may be because of your utilization, but i would check into that, wow, thats a high limit

It might just be your utilization. With the credit crisis and current state of the economy, now is the time that banks will be imposing things such as raising APRs and decreasing CLs. WaMu is no stranger to raising the APRs of accounts. I personally am more concerned about credit limit decreases as they will affect your current utilization and wont look good on your report. Of course any negative change is not good, but banks have it stated in the fine print of the terms and conditions that they may do it at any time.

Shark6, think it might be your utilization that has them worried? I'm with you, if you have always paid on time and paid over the required minimum what's the issue?

How long have you been at 70% utilization? Have you been lower than this and just purchased something that has put you at that rate or has this rate of utilization been steady over "x" months of time? There are smarter people than me here but I think they are concerned that you might not be able to pay off your balance within a window of time.

I just got my WAMU statement today and I got rate jacked from 12.99% to 23.99% effective Sep/08.

I've never been late, never exceeded my limit and I have always paid over the minimum. My utilization is over 70%. I can't believe this. I will call tomorrow and if they don't lower it, i will BT asap.

You wonder why this bank is going down fast!