The cost of borrowing in all forms has risen over the last few years as the Federal Reserve has increased interest rates.
Not only has this increased the cost of borrowing for major purchases, like a home or vehicle, but even every day purchases currently cost more than they did a few years ago if you paid with a credit card.
Many card issuers have raised their interest rates, or APRs, in recent years, as these banking institutions have increased their margins.
A warning against Lowe’s credit cards
One Lowe’s customer says these interest rate hikes left him with a fee even after he paid his balance on a Synchrony Bank card in full less than a month after he made his first and only purchase using this credit card.
In a video shared to TikTok, user Shawn (@bake_me_a_cake3) says he used the Lowe’s store credit card to pay for house paint because he got a good deal on it, but was later charged a small fee after the card issuer increased its rates.
“I just canceled my Lowes reward credit card over $2.03,” he says in the video. “As those of y’all who have been following me for a couple of months know, back in May I had my house painted. I went to Lowes, I opened up a MyLowes Rewards credit card, and I purchased all of the paint for the house using that credit card because there was a great incentive to make that purchase that saved me almost $800.”
He says he ended up using the card to finance a total of $1,700 for the paint, which he paid off in two installments within the month, leaving him with a zero-dollar balance. However, he was left with a $2 minimum interest charge and three-cent security fee on his next balance, as the bank he had gotten the card through raised their interest rate without notifying him.
“So I called them to find out what was happening, and apparently they changed their interest rate on the card, but failed to notify me,” he says. “So the lady removed the fees, and I said you can go ahead and remove the whole entire card.”
Synchrony Bank issues credit cards for both Lowe’s and Sam’s Club
The TikToker calls out Synchrony Bank specifically, the bank that issued his Lowe’s credit card. He also says his Sam’s Club credit card was issued by the same bank.
“I’ve had my Sam’s Club credit card for three or four years,” he says. “On top of that, I have a great credit history and a score of 810. That is not a flex, that is just a fact and what 12 years of on-time payments and not over stretching or over utilizing my credit has got me.”
The Daily Dot has reached out to @bake_me_a_cake3 via TikTok direct message and a comment on the video, as well as to Synchrony Bank via email regarding the video.
Commenters agree with his Lowe’s warning
Several viewers chimed in in the comment section that they had experienced issues with credit cards issued through this particular bank.
“Yeah that happened to me too and it was the same bank!” one commenter wrote.
“Synchrony Bank cards are the worst,” another said. “They closed 2 of my cards and I didn’t know until I tried to use one of them. Cards were used and paid off with no issues and they were just closed no explanation.”
“Synchrony is AWFUL,” a third added. “Lowes, amazon, venmo, care credit. they lowered my credit limit because I was ONE day late…why? because I couldn’t log into the system.”
@bake_me_a_cake3 Check your credit card statements, and any bill statement, religously! #lowes #credit #creditcards #finance #financialfreedom #information #education #learn #learning #storytime #story #themoreyouknow #inflation ♬ original sound – Shawn, Your Friendly Baker ☺️
Viewers also shared that they were canceling cards from other issuers who had similarly raised rates, among other reasons.
“I just canceled my Macy’s I received a letter stating the new interest rate is 38.4 I said I could get better rates with a loan shark,” one commenter wrote.
“I closed my Macy’s card because I didn’t receive a refund by mail, and they claimed to have no record of it,” another commented. “I had been a cardholder since 2014.”
“This happened to me with Talbots!” a further user added. “I closed my card as well!”
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