I just received notification from Wells Fargo, interest on my Credit Line

[Winterblues]

is going up. was at 9% and going to 9.75% The Fed has not raised interest rates and the Prime has been stable. Why do you think they are raising rates?

[Davis_X_Machina]

1. LIBOR is up...

..and LIBOR + an increment is the usual way LOC's are priced.

[Winterblues]

2. Yes that is what the letter said, I just don't understand I guess.

:shrug: Are Credit Cards based the same way and will everyone's Credit Card interest be rising as well?

[stray cat]

5. the majority yes - and it probably isn't the last increase - credit is in big demand!

[sazemisery]

3. You are not a large corporation, are you?

The small business owner (as I am and probably so are you) has always been the ones to bear the brunt of the economic problems.

[napi21]

4. Consider yourself lucky that it only increased 3/4%. Be careful not

to use any more of your line than is absolutely necessary. I suspect this is only the FIRST increase.

[Warpy]

6. They need revenue to offset the junk on their balance sheets

You know, the junk they bought from hedge funds because it was a sure thing and would generate high returns, unlike hosers like you and me.

[Robbien]

7. Banks are raising rates on everyone. States and local governments

are being hit hard with increased bank rates. Banks are saying they need to recapitalize and are getting the money from its customers.

[ITsec]

8. I've had 3 of my CC's go up 1/2 to 3/4 % this month....

fortunately, I don't carry a balance on any of them, so they still aren't making any money off of this "credit card deadbeat".

:woohoo: