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Ask Dave

Say Bye Bye

Dave suggests that Jane take a novel approach toward dealing with the credit card company that is raising her interest rate.

QUESTION: Jane in New York has a credit card that is about to raise her rate. If she opts out of the card, will that negatively affect her credit score?

ANSWER: It should not. I would opt out, but make sure that there is no prepayment penalty. Make sure you can pay these people off at any time. This company has basically told you that they don’t want you as a customer anymore.

Just move it to another credit card. As quickly as I could, I would do that and never do business with them again. If I had been eating at a restaurant for years and they decided to double the rate they charge for bald people, I’m going to eat elsewhere.

They are doing this to avoid the new law. They want all the old debt off the books so they can have only new debt in place.