Why would my bank lower my interest rate?

[namename11]

I got an email from my bank today where it said that they've lowered my yearly credit card interest rate from 28% to 6.5%. I don't know why they might be doing this and I know not to look a gift horse in the mouth but something about this feels "off", if that makes sense. What incentive do they have to do this?

 

[Scarlet]

Damn that’s quite a reduction. Maybe to get you spending more on the card to later increase the rates again?

 

[DiscostewSM]

Have you been with them for a long time? You have good credit? Are you prompt with your payments?

Now for something important. Is this that they are automatically doing it, or are you having to do anything to get that lower interest rate? If the latter, then it's likely a scam. But regardless, maybe you should talk with your bank to confirm the situation. I mean, if they truly are lowering your interest rate, then I doubt they are going to jump it right back up because you mention it.

Better to be safe than sorry.

 

[Skv0ra]

Damn that’s quite a reduction. Maybe to get you spending more on the card to later increase the rates again?

Precisely this.

 

[namename11]

Damn that’s quite a reduction. Maybe to get you spending more on the card to later increase the rates again?

I don't think I've ever crossed the $1000/mo limit I set for myself, but I do mostly use this card for non-essentials so you could be right. Maybe they really want me to buy that $1200 8TB SSD I've ordered then cancelled a couple of times now... Do retailers send my bank full invoices with details of the stuff I'm buying, or just a bill saying "pay $X"?

Have you been with them for a long time? You have good credit? Are you prompt with your payments?

Now for something important. Is this that they are automatically doing it, or are you having to do anything to get that lower interest rate? If the latter, then it's likely a scam. But regardless, maybe you should talk with your bank to confirm the situation. I mean, if they truly are lowering your interest rate, then I doubt they are going to jump it right back up because you mention it.

Better to be safe than sorry.

I've been with them for 6 years. No idea about my credit score tbh I don't track that stuff. I've never missed a payment due date, but I don't know about promptness since I usually forget and pay them the day of when they email me a reminder.

I've never really contacted them for anything like this, just got an email from them and found it a little sus. It was from their official email and I also called them to confirm it if that matters. They said it was part of their yearly review process or something?

Precisely this.

They're going to be disappointed because as broke as I am, I have no intentions of going into debt.

 

[Skv0ra]

They're going to be disappointed because as broke as I am, I have no intentions of going into debt.

Well, they're counting otherwise.

 

[SonyUSA]

Credit Card companies are DESPERATE to generate usage right now, people are scared to spend. I've been getting offers for 0% APR for 2 years with a bunch of bonus points/miles/etc. these past 6 months.

 

[namename11]

Well, they're counting otherwise.

I'm sure someone will fall for it.

Credit Card companies are DESPERATE to generate usage right now, people are scared to spend. I've been getting offers for 0% APR for 2 years with a bunch of bonus points/miles/etc. these past 6 months.

0% is insane.

I get offers for points and sign-up bonuses sometimes, and whenever possible, what I do is take the reward and close the [financial instrument].

 

[Skv0ra]

I'm sure someone will fall for it.

0% is insane.

I get offers for points and sign-up bonuses sometimes, and whenever possible, what I do is take the reward and close the [financial instrument].

Its not. LOTS of 12-16mo 0APRs because they're hoping you max that out or forget about it and end up with 10k@28%

 

[namename11]

Its not. LOTS of 12-16mo 0APRs because they're hoping you max that out or forget about it and end up with 10k@28%

Isn't the rate locked for a year? I think my bank told me something like that... Paying off 10K in one year isn't easy but with no interest? It's not that bad a deal.