Redditor tells us that they recently applied for an Apple card, and their request was approved. The increase is likely related to the government's recent updates to the Fair Credit Bill. As redditors expected, the limit on their cards will now increase, from a maximum of $1000 to a maximum of $1500. What's even more interesting, in the wake of the cap increase, is that the credit limit increase affects two different types of people: consumers with bad credit and consumers who already have significant limits on their card.
According to the editor, this move is not only unfair, but it's also been implemented without consulting credit card users. “First, the cap increase affects everyone, including people with good credit. The second is that no one has been consulted about this, and as such, no one can tell whether or not they will be affected by the change. This is especially frustrating, as many people do not realize how much risk their credit cards pose to the banks.” They went on to add that even if they don't suffer from bad credit, they are still able to benefit from this new feature.
It looks like the lack of communication between the bank and the customers is to blame for this new feature. The bank may not have told everyone that the limit would increase (thus making the sudden change); instead, they only notified those who had already applied for an Apple card. Now, credit card users who no longer have an available credit line have suddenly become high risk, forcing the bank to raise their limit. It seems as though they are singling out those with bad credit in order to force them to re-establish their credit; and that could ultimately lead to serious credit problems for those people.
This whole situation has affected other credit cards as well, which have seen a simultaneous increase in the minimum monthly fee and the annual fee. Even if you are one of the lucky few who hasn't applied for an Apple card yet, chances are that you know of at least one person who has or might be thinking about it. That is why these kinds of sudden credit card increases can be so disheartening. Banks like Wells Fargo have a history of suddenly raising rates for consumers, sometimes without warning. So, before you decide you don't want to take out an Apple card, consider whether the increased fees will be worth it for you.
Of course, you can always transfer your balances to a low rate card. This option gives you the chance to rebuild your credit rating, as long as you pay your balances on time. However, most consumers find this process to be cumbersome and inconvenient. You can't just transfer your balance to another low rate card because that card is now an Apple card and thus requires an additional membership. And, although you may get a lower introductory rate by doing this, if you decide to end your card usage at any point, you will be charged a higher interest rate. So, in the end, transferring balances might not save you money.
There is some good news, however. Some recent changes to credit card laws have allowed more flexible credit limits for some consumers. For example, some credit cards now offer a second tier of credit which allows you to start building credit while using your current credit cards. But, of course, you must make sure that you maintain your balance at all times.