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Chase at 33 percent!!!


sje123
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I received a new credit card agreement from Chase that said they would no longer raise the rate if you are late with a payment to a creditor other than them.

Great. But I'm NEVER late on any of my payments...and my rate just climbed to 33 percent. So I have been asking them to tell me since last summer and today I received this letter:

Credit report shows total bankcard balances have grown too fast (I don't know what this means as most of my cards are years old).

Total balances are too high when compared to total credit limits.

Total bankcard balances are too high compared to total credit limits. (I think this is the same as 2??)

I still don't understand why this translates into an astronomical interest rate.

Can anyone suggest anything? please? help!!! thanks

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I should disclose that I've had bad dealings with Chase, but things like this is ludicrous. Why should a bank jack up the interest rate for USING their product? I suppose next they will jack up the interest rate for NOT USING their products. Do better, avoid Chase. There's others out there. Chase as well as Citiskank are just too big for their own good.

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It's a risk premium. Unfortunately the banks see high balance ratios to limits as a potential warning sign they will never be repaid. With the new bankruptcy bill they all lobbied for, it now becomes more difficult for the banks to lose and what you are seeing now is a new sign of the times!

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Yes but how do they make this decision they will never be repaid? I mean, shouldn't they take ALL factors into consideration? Several things that come into play WOULD BE

1. the fact that I am never late on anything (why doesn't THAT matter? if I was in ANY kind of financial difficulty, wouldn't that be the FIRST indication?)

2. the fact that I have a yearly salary that exceeds all of my credit balances put together (including a 250k mortgage).

3. the fact that I do have a mortgage with a 250k balance, my house is worth so much more than that.

4. the fact that other than my "high" credit limits, my net worth is somewhat substantial.

5. the fact that some of my credit cards are high because I transfer balances when I get a zero percent offer. Isn't that GOOD credit sense?

6. the card they jacked has a small credit limit of 1500 with a balance of about 800.00 so I can pay it down and be rid of it but I am concerned b/c I have Marriott Rewards Visa that used to be Bank One and now it's Chase. I'm afraid they will do the same and I have about 7k on that.

7. some of the information on my credit report is wrong such as the original line of credit versus the balance owing and Experian doesn't seem to change it no matter how much I yell about it.

I'm so frustrated. I can pay off and close the accounts, but it's still frustrating.

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they have no idea about your net worth. What they see is you use your credit cards and have run up balances over "acceptable ratios" . They are charging you for the utilization rate. Insidious, yes. Fair? I don't think so either. But Chase is saying there is a price to pay for the luxury of carrying juicy balances, even if you pay them promptly.

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HI cavazos007, I am not trying be disrespectful.

But I have to chime in here... You said:

Grim is Chase that bad? I have a Toy's R US card with them. But my limit is only $300.00 so I don't use it that much.

They are ALL that bad ! (Please standby while I climb onto my soapbox...)

It appears to me as thought there are people on this board that think there are credit or banking businesses that are better than others.

While this MAY be true in some circumstances, I assure you it is by accident, not design.

Rest assured that The Wall Street Wizards will find those under-performing managers ( and institutions,) (who don't work 24/7 to nail all their customers for every nickle they can,) punish them, and fire them.

The finance industry has never been so consolidated as it is now. Everyday regional or national holding companies are buying up banks AND Credit Unions, replacing the Management Teams with people who will increase earnings. That means increasing fees, interest rates and designing systems to squeeze every nickle they can out of their customers. "So many take-over targets - so little time..."

You have to know your enemy, you're not fighting your local financial institution, you fighting Wall Street.

No, its never going to get any better, its only going to get worse.

You have to know that every transaction you have with a financial institution is a battle in a war game.

Business is the mutual exchange of goods and or services, make no mistake about it -there is no "mutual" in their plans.

If this isn't your experience today - don't worry - tomorrow is coming...

Sorry for the lecture - I'm off my soap box now.

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That is why this business of telling consumers that they have a moral obligation to pay what they owe that is beyond the legal requirement to pay always makes me laugh. The banking industry show no such morals, the only thing that keeps them in check is profit and loss. The law doesn't even keep them in check, unless and until the lawsuits exceed the profit they take from breaking said law.

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Dear sje123,

Do you have your original Cardholder agreement? The default interst provision changes February 1, 2006 so this new agreement isn't in affect yet.

I just pulled my agreement out and found this phrase:

"We may consider the following factors to determine your default rate: the length of time your account has been open; the existence , seriousness and timing of defaults on your account; other indications of your account usage and performance; information about your other relationships with us or any of our related comapnies; and information we obtain from consumer credit reports obtained from credit bureaus."

I called Chase because I was planning to put everything on the Chase card for December so I can get my high balance reported to the credit bureaus as close to the limit as possible for one month. ( A strategy to increase my credit score.)

I spoke with the rep who said she has never heard of the problem you are experiencing and claimed that they don't use this provision unless there is a default of some sort.

IMHO:

1. You need to get your Agreement and read it over to see if it matches what I have listed above.

2. If you don't have an agreement, call them and ask them for one.

3. I think Chase has somehow coded your account as being in default, ( or a security risk.) You need to find out why they think you are in default.

4. You need to request a copy of your account history CMRRR. ( Do you have a credit report that shows you were never late?)

5. Chase's Agreement is enforceable in the State of Delaware, (which we all know has virtually no usuary or consumer protection laws,) however, I suspect that if you pursue this with the AG. They will have to restore your rate.

(You need to wait untill after 2/1/2006 to contact the Delaware AG.)

Good Luck,

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Another thing to look out for when applying for a card is the small print regarding variable APRs. My Household card recently shot up to 21.65%. I called to find out what exactly I had done wrong. Apparently my cardholder agreement called for Prime PLUS 14.xx%!!!! I was stunned. Even after almost 4 years of perfect payments and low utilization, they refused to lower it. So now I will simply pay down the $233 balance and not use the card anymore.

As for our "moral" obligations, where are the morals involved in $250 minimum payments from which $20 is applied to the principal and the rest to interest? That's USURY, but they get away with it. I didn't feel particularly guilty after my BK7 because of this. I knew I had paid, several times over, every cent I actually put on the cards. The rest was blood money. If anything, they owed ME money. I had paid them off years before!!

All these companies are just legal loan sharks with a very effective lobby... and friends in high places.

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Not to continue to rant about this but I posted on another thread that my Amex Gold shows the same high balance/balance owed every month even though I pay it off in full every month. so every month I run up about 5k on my Amex Gold. Every month I PAY OFF 5k on my Amex Gold but every single credit report shows high balance 5k and amount owed 5k for every month.

Can I dispute chase based on the fact that they are misreading the report? I simply can't understand how I can be penalized for using credit, having credit, moving balances when the interest rate is correct etc.

PLUS there are several PAID OFF (but open) cards that show NO CREDIT LIMIT w/ a balance of zero and I understand that if a TL is "incomplete" it doesn't count in being added into utilization. Even though I've asked the CRA's to fill in the credit limit, they don't.

So all of this results in MY being charged 33 percent. I don't get it.

Am I just thick???????

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I received a new credit card agreement from Chase that said they would no longer raise the rate if you are late with a payment to a creditor other than them.

Great. But I'm NEVER late on any of my payments...and my rate just climbed to 33 percent. So I have been asking them to tell me since last summer and today I received this letter:

Credit report shows total bankcard balances have grown too fast (I don't know what this means as most of my cards are years old).

Total balances are too high when compared to total credit limits.

Total bankcard balances are too high compared to total credit limits. (I think this is the same as 2??)

I still don't understand why this translates into an astronomical interest rate.

Can anyone suggest anything? please? help!!! thanks

Well, you can be happy that they didn't close your account from one day to the other. That's what happened to my Mum and she never missed any payments, neither with Chase nor any other creditor, and the balance on her chase-account was $250 at a credit-line of $3,000.

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Not to continue to rant about this but I posted on another thread that my Amex Gold shows the same high balance/balance owed every month even though I pay it off in full every month. so every month I run up about 5k on my Amex Gold. Every month I PAY OFF 5k on my Amex Gold but every single credit report shows high balance 5k and amount owed 5k for every month.

Can I dispute chase based on the fact that they are misreading the report? I simply can't understand how I can be penalized for using credit, having credit, moving balances when the interest rate is correct etc.

PLUS there are several PAID OFF (but open) cards that show NO CREDIT LIMIT w/ a balance of zero and I understand that if a TL is "incomplete" it doesn't count in being added into utilization. Even though I've asked the CRA's to fill in the credit limit, they don't.

So all of this results in MY being charged 33 percent. I don't get it.

Am I just thick???????

That's the typical problem every creditor is facing and the reason for that is that the balance reported to the CRAs is your Statement-balance. You would have to make 2 monthly payments on your credit-card accounts to avoid this reporting:

1. You pay the minimum payment due as soon as you receive your bill.

2. You pay the complete balance in the week before CLOSING DATE, NOT due-date. :!:

Remember, you want them to report a low balance and the only way to achieve that is a low closing-balance....

I have 6 credit-card accounts and 5 of them are reported with a $0-balance although I use this accounts on a regular basis. I just keep an eye on the due- and closing-dates and avoid having balances on these accounts the date they close... 8-)

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I pay my bill within a day or two of when it posts online. I don't wait until the due date. And my balance is still at least a month behind on most cards.

What I don't get is why they report the day the statement is generated, instead of the day after the bill is due. You don't even get a chance to pay it and they're already reporting, which means they're always reporting the previous month's information and you're always a month behind. Makes no sense. All they have to do is wait until the day after the due date to report, and voila... your info is always up to date! Why is that such a difficult concept for them to grasp? :x

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I did have Discover close my account for no apparent reason once citing me as a credit risk. This is why I think this sort of thing would be laughable if it weren't so sad. At the time Discover closed it, I was living in a 200k house with a 35k mortgage. I had 4 good credit cards, all were about 40 percent utilization. I had just received an inheritance and I received 385k which was in the bank. So there was nothing in my WHOLE picture that would warrant a "bad credit risk" label and my bills were always paid on time.

To me, the Discover move was completely without reason and it showed ujp on my credit report as "account closed by creditor" resulting in a nice ding to my credit. I tried to talk to them and there was NO talking to them.

That is why I'm frothing over this Chase thing. I don't consider it reasonable.

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