I am sorry to say that I have closed my Best Buy account, today. Why?
It wasn't because of their superior service. Let's be honest: I would rather shop at Best Buy and pay a small mark-up than to wade through the waves of ineptness at Fry's Electronics. The language barrier alone at Fry's is enough to make me think I have transported myself to a 3rd world nation.
Why then? Very simple. Best Buy decided that they would raise my interest rate on my credit card. I have used them for the past several years for purchases ranging from PS3 consoles, camera accessories, to various electronic devices and DVD/Video Games. I was recently greeted with a notice about my interest rate being hiked - but it was obscured in the document and hard to read. I found that my new interest rate would be calculated on some Wall Street Journal Index compounded daily and then added to a fixed amount.
My current rate was at a stellar 19.99% to begin with, but with their new terms, it appears that my interest rate (according to Best Buy's analysis of the Wall Street Journal from August 1, 2009) would run between 24.99% to 29.99%.
Hmmm... I pay my account on time. I don't keep a large balance (in fact, I just paid my last $73.21 to bring my balance to $0.00). And the economy sucks?!
So what gives - why are companies and banks so eager to raise the interest rates on people who are doing good and right with their account. Penalizing us especially after some of them took government bail-out money to help get them through the turmoil earlier this year!
If Best Buy (and other institutions, I am sure) do not want us to patronize them and use their financial services, we can find other avenues or outlets where we can spend our hard earned money. It won't stop me from patronizing Best Buy, but it will stop me from being more careless with my money than I might normally be. I will pay cash... thank you very little!
My blog, my two cents.