AIB Student Mastercard - Minimum payment unexplained increase 5% to 11.7% - Why???

eskimo

I got my AIB Student Mastercard in September 2006. The minimum monthly payment has always been 5% of the total owed on the card. Today I checked and the amount they want me to pay next month is 11.7%.... Why?? Anybody know what has caused this sudden increase?

For me, it's the difference between having to fork out €60 and paying €140. And I can only just afford the €60 so I'm majorly pissed off about this big unexplained increase!!

Sangre

are you over the card limit on the bill? Have you missed a payment? these will increase the amount owed to more than 5%

BuffyBot

Obvious, I know, but have you called them to ask?

eskimo

No, everything else is normal, so I don't think it's that.

I haven't rang them yet but I will definitely!

kaiser sauze

The banks underwriters have likely re-evaluated your business and decided that you are no longer as steady as the time you took out the card. The reason that they've performed these 'dark arts' is, more than likely, due to the turmoil on the markets and the global credit squeeze. Banks have been performing these re-evaluations for months now.

Did you hear the story about EGG.com, in the UK, the cancelled thousands of customers' cards without warning recently?

It could also be as simple as they no longer classify you as a student. [Although (personal opinion) I can think of no good reason for a student to have a credit card]

Last reason, you've missed a payment or you went over your balance, however, I see you've discounted that possibility. Have you checked your statements for fraudulent transactions?

And yes, you should give your bank a call.

BendiBus

eskimo wrote: »

I got my AIB Student Mastercard in September 2006. The minimum monthly payment has always been 5% of the total owed on the card. Today I checked and the amount they want me to pay next month is 11.7%.... Why?? Anybody know what has caused this sudden increase?

For me, it's the difference between having to fork out €60 and paying €140. And I can only just afford the €60 so I'm majorly pissed off about this big unexplained increase!!

If you can barely afford to pay 5% of the balance on your credit card you really need to re-evaluate your spending. Be thankful that AIB are forcing you to address your situation.

The Rooster

BendiBus wrote: »

If you can barely afford to pay 5% of the balance on your credit card you really need to re-evaluate your spending. Be thankful that AIB are forcing you to address your situation.

Indeed. If he's been paying 5% since September 2006, he's wasted some amount of money on interest at extortionate rates...

eskimo

kaiser sauze wrote: »

It could also be as simple as they no longer classify you as a student. [Although (personal opinion) I can think of no good reason for a student to have a credit card]

Your personal opinion is an unfortunate admission of closed-mindedness and ignorance. I'm genuinely impressed you had the balls to make such a statement, but I have to say I'm horribly embarrassed for you; that's really cringe-worthy that you actually said that; I have to assume it's the result of a particularly sheltered existence. At least you admit it though, even if it was only in the form of an unfortunate and unintended by-product of your post.

BendiBus wrote: »

If you can barely afford to pay 5% of the balance on your credit card you really need to re-evaluate your spending. Be thankful that AIB are forcing you to address your situation.

What I can afford and not afford is nothing to do with you and my spending habits are not topics open to your judgment, and I find your telling me what I "really need to do" with my money offensive. Your post oozes judgment, which you are majorly, majorly unqualified to pass in this case.



All in all, two unnecessary, arrogant, unhelpful responses, which it really seems were made for no other reason than to enjoy whatever feeling comes from being judgmental of total strangers and their personal lives, but which have resulted in you making embarrassments of yourselves, although I know you sadly will not realise that. If you would care to actually give an answer to the question which was asked, then please feel free to add another post to my thread. If not, then please don't waste valuable web space with your unjustified and hideous arrogance.

stepbar

To be fair to the OP, a credit card is the only way a lot of students can afford to live. When I was in College, I was right up to my balls in debt. I got an AIB student credit card in 2001 and by the time I cancelled it (2007) I had a limit of 3.3k. In 2005, I had about 1600eur on the card and 600eur on the overdraft. How in ever I cleared both in 3 months one summer. I couldn't believe how willing AIB were to give me limit increases. That being said I never missed a payment and usually cleared the card off every 6 or so months (with the grant cheque )

On the flip side if you are only paying the minimum since Sept 2006, then there could be a problem OP.

To answer the question, I do know AIB have a larger minimum payment p/m than BOI and perhaps because of the percieved risk, they may have increased the minimum payment across the board for students. I would get a student loan and perhaps it could save you a lot of money.

BuffyBot

All in all, two unnecessary, arrogant, unhelpful responses, which it really seems were made for no other reason than to enjoy whatever feeling comes from being judgmental of total strangers and their personal lives, but which have resulted in you making embarrassments of yourselves, although I know you sadly will not realise that. If you would care to actually give an answer to the question which was asked, then please feel free to add another post to my thread. If not, then please don't waste valuable web space with your unjustified and hideous arrogance.

For future reference, if you have an issue with a post, report it. Don't bring it on to the thread.

And while BendiBus' comments may be harsh, and not what you want to hear, they may have a point.

kaiser sauze

eskimo wrote: »

Your personal opinion is an unfortunate admission of closed-mindedness and ignorance. I'm genuinely impressed you had the balls to make such a statement, but I have to say I'm horribly embarrassed for you; that's really cringe-worthy that you actually said that; I have to assume it's the result of a particularly sheltered existence. At least you admit it though, even if it was only in the form of an unfortunate and unintended by-product of your post.



What I can afford and not afford is nothing to do with you and my spending habits are not topics open to your judgment, and I find your telling me what I "really need to do" with my money offensive. Your post oozes judgment, which you are majorly, majorly unqualified to pass in this case.



All in all, two unnecessary, arrogant, unhelpful responses, which it really seems were made for no other reason than to enjoy whatever feeling comes from being judgmental of total strangers and their personal lives, but which have resulted in you making embarrassments of yourselves, although I know you sadly will not realise that. If you would care to actually give an answer to the question which was asked, then please feel free to add another post to my thread. If not, then please don't waste valuable web space with your unjustified and hideous arrogance.

QFT. :rolleyes:

Despite your rant, I stand by my opinion.

I also have the experience in the financial sector to back up my opinion. You also question the validity of another person's post. What experience have you?

I did address your points, however, in the mists of your rage you've failed to see them. Please read a post in full before making silly claims.

What I find extraordinary is the supposition you extract from a post. Supposition that I feel no urge to comment on directly.

I feel sorry for you. People will not always be there when you cry "wolf".

kaiser sauze

stepbar wrote: »

To be fair to the OP, a credit card is the only way a lot of students can afford to live. When I was in College, I was right up to my balls in debt. I got an AIB student credit card in 2001 and by the time I cancelled it (2007) I had a limit of 3.3k. In 2005, I had about 1600eur on the card and 600eur on the overdraft. How in ever I cleared both in 3 months one summer. I couldn't believe how willing AIB were to give me limit increases. That being said I never missed a payment and usually cleared the card off every 6 or so months (with the grant cheque )

On the flip side if you are only paying the minimum since Sept 2006, then there could be a problem OP.

To answer the question, I do know AIB have a larger minimum payment p/m than BOI and perhaps because of the percieved risk, they may have increased the minimum payment across the board for students. I would get a student loan and perhaps it could save you a lot of money.

Were you up-to-your-neck-in-it at the time you took out the card?

You've given good advice to get a loan and, also, in relation to only paying minimum balance, however, I'm not sure the original poster will "listen".

BuffyBot

I feel sorry for you. People will not always be there when you cry "wolf".

Let's drop the personal stuff - that goes across the board.

stepbar

kaiser sauze wrote: »

Were you up-to-your-neck-in-it at the time you took out the card?

You've given good advice to get a loan and, also, in relation to only paying minimum balance, however, I'm not sure the original poster will "listen".

I used to call myself the "rich student" for a long time in college When I came back for the final year (after work experience) I had no job and realistically hadn't time for one. Had the card for a number of years and only really started to put money on it during that year (2005). As I've said, I cleared it during the summer of 2005. The following year, I did the same but this time I had a small job which helped. Eventually towards the middle of 2006, I got a loan to clear the debt I built up. Considering I spent 6 years in college, 2k of debt wasn't a bad amount to come away with.

To the OP, you mentioned that you pay 60eur a month or 5%. I would take that your debt is around 1200eur. Seriouly, the Credit Union offer students a 6% interest rate. The cost of 1200 over 2 years would be 74eur. Any you have the added benifit of practically fixing your payments (assuming a fixed rate loan or ECB rate stays steady) every month.

http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=94&3nID=104&4nID=123&5nID=104&6nID=123&7nID=104&8nID=123&9nID=104&pID=123&nID=469

I now work in the financial sector as well. Paying up on 20% interest on a credit card is madness.

Creamy Goodness

bit off topic but too close to start a new one.

what happens when i finish college and my aib student credit card expires shall they offer me a standard credit card, bearing in my i've not once paid them a cent in interest since first year now in third year.

stepbar

Unfortunatly you have to reapply. When I started work, I wanted to get rid of the student card and get an ordinary one. I was told that I would have to reapply and that I might not get the limit I had. When I eventually got rid of the card, I had a 3.3k limit :O

Hanley

Cremo wrote: »

bit off topic but too close to start a new one.

what happens when i finish college and my aib student credit card expires shall they offer me a standard credit card, bearing in my i've not once paid them a cent in interest since first year now in third year.

Woah woah woah.... do you not have to pay interest on a student credit card??

Well colour me ignorant. Wish I had know that before I only had 8 weeks of college left

Creamy Goodness

it's the basic principle of a credit card, you pay on time, you don't pay any extra charges except for that stupid government tax.

the day i pay a cent in interest on a credit card, will be the day i chop it in two.

stepbar, when you reapply they still give you a card right? i'd be lost without a credit card tbh.

i have mine at the 3300 limit at the moment too

Hanley

Cremo wrote: »

it's the basic principle of a credit card, you pay on time, you don't pay any extra charges except for that stupid government tax.

the day i pay a cent in interest on a credit card, will be the day i chop it in two.

Ohhhhh for some reason I though there might be a student card with a rolling balance to a certain limit that you didn't have to pay any tax on!! (I assumed it was part of a plan by banks to lock you in as a customer early on)

And yeah, I agree, I've never paid any interest on my card in the 4 years I've had it either.

eth0_

eskimo wrote: »

What I can afford and not afford is nothing to do with you

Well actually, it is. By the sounds of it you've been paying paltry amounts off your credit card debt and are seen as a less than ideal debtor by your bank, and THAT is why your minimum payment has been more than doubled.

stepbar wrote:

To be fair to the OP, a credit card is the only way a lot of students can afford to live.

Sorry but that's rubbish :-)
When I was a student I worked 20 hours a week during term time, and full time during the summer. That was more than enough to pay for the necessities and a bit of socialising. I think what you *mean* is, 'a credit card is the only way a lot of students can afford to go drinking' :P

kaiser sauze

eth0_ wrote: »

Well actually, it is. By the sounds of it you've been paying paltry amounts off your credit card debt and are seen as a less than ideal debtor by your bank, and THAT is why your minimum payment has been more than doubled.

That is a good point, one I neglected to mention directly.


Sorry but that's rubbish :-)
When I was a student I worked 20 hours a week during term time, and full time during the summer. That was more than enough to pay for the necessities and a bit of socialising. I think what you *mean* is, 'a credit card is the only way a lot of students can afford to go drinking' :P

I'm glad that someone else agrees with my opinion. I still find it incredible that students would want to put themselves into debt, before they even begin a working life.

stepbar

kaiser sauze wrote: »

I'm glad that someone else agrees with my opinion. I still find it incredible that students would want to put themselves into debt, before they even begin a working life.

Hold on a minute. There are plenty of student who have no choice but to borrow money to pay fees, live during the year etc. For me, the credit card enabled me to concentrate on my studies without having to worry about a part time job. If managed properly, there should be no problem.

unclebill98

Well i was a student, no credit card. Part time job and small money from my parents.

Banks are throwing cards and loans at students. Aiming for the professional students whom are more than likely going to become long term customers, so getting them early is what its al about.

As for the OP, It may well be the fact your only paying off the min and thus that have raised the min payment. But it does sound odd, considering that many changes are confirmed in writing to the card holders.

Interesting to see what the bank says.

parsi

When I was a student it was a damn hard job to get a cheque guarantee card let alone a credit card.

The OP needs to get his affairs in order - paying the minimum payment only benefits the bank.

If he has an issue with folk knowing his business then he shouldn't psot on the most popular forums in Ireland.