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OMG Chase rate jacking WAMU customers


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What difference does it make? If you PIF, your effective rate is 0%..

Those who only use the CC for emergency situations care quite a bit about the rate. If I have to access a couple thousand dollars for some emergency situation and I don't have the cash on hand, then I may have to put it on the CC. Since I didn't have the cash, chances are I won't be able to PIF at the end of the month. That is when having an acceptable rate matters. It seems irresponsible to me to ignore the interest rate on the card because you THINK you'll be able to PIF all the time. Insuring you have the best rate available to you regardless of whether you'll be carrying a balance seems much more reasonable to me.

OP - My guess is that they are trying to get rid of as many WAMU branded cards as they can. I bet they'd be more than happy to have you apply for a Chase card, and your rate will be much more palatable. Depending on your situation, I'd lose the balance but leave it open, especially if you have a decent history length with WAMU. Plus, it looks like a good portion of your credit is through store cards, so you may want that CL around in the event of an emergency.

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Jestor, this may not happen here, but in personal finance blog land, people would swoop in to chastise you for not having a sufficient "E-Fund." As if you're some kind of dunce if you intend, ever, to carry a dollar's worth of balance on a credit card.

:roll: I get a little tired of the proselytizing, myself. I think all of us understand that low rate = better and high rate = worse. The PIF question above was meant to be rhetorical.

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I have a VISA with WAMU, and the APR has been lowered since getting it. After seeing the posts here about the rate-jacking, I sent a message to Customer service on the site to inquire about my current APR. I'm sure I've gotten a notice in the mail at home about changes to my account, but I work overseas and I haven't read it yet. CSR responded with a rambling form letter response about how they can change things per the original agreement without answering my question. My WAMU VISA is one of my oldest, with a $3500 CL, and the current balance on it is less than $200. If its been rate jacked and the APR maxed out, it will be closed. I have 4 years of good history with the account, its served its purpose. I have other cards with better rates with decent credit limits, and I have been cutting down on the number of credit cards I have. Getting several to get a good credit history seemed like a good idea at one time, but I really don't need all of them. I'm going to cut it down to probably just one VISA and one M/C, and a couple of store cards.

Update - I sent CSR a message asking about my APR again, and they answered this time. APR jumped up to 24.99%, thats double what it had been. Looks like WAMU and the VISA I have with Chase just made the top of my cards to cancel list.

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Jestor, this may not happen here, but in personal finance blog land, people would swoop in to chastise you for not having a sufficient "E-Fund." As if you're some kind of dunce if you intend, ever, to carry a dollar's worth of balance on a credit card.

:roll: I get a little tired of the proselytizing, myself. I think all of us understand that low rate = better and high rate = worse. The PIF question above was meant to be rhetorical.

I certainly understand your points, and keep in mind I was not trying to be argumentative. My concern was that it is unlikely that everyone will pick up on the rhetoric of the question, and as such, may be left with a lopsided view of the issue. My post was not intended as a direct response to Big Woody, whom I have a great deal of respect for, although I can see how it may have appeared that way. It was merely intended to answer for future readers, especially newcomers without a lot of "credit knowledge", why it does make a difference. I quoted his passage merely because it contained the question I was answering. It was my attempt to create a fuller view of the issue that may not have been apparent after reading the posts that preceeded it. I try to stay cognizent of the fact that while I am a great deal more knowledgeable than I used to be, I was clueless about these issues just a year ago, and that many readers of this board are probably in the same boat I was.

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I have a VISA with WAMU, and the APR has been lowered since getting it. After seeing the posts here about the rate-jacking, I sent a message to Customer service on the site to inquire about my current APR. I'm sure I've gotten a notice in the mail at home about changes to my account, but I work overseas and I haven't read it yet. CSR responded with a rambling form letter response about how they can change things per the original agreement without answering my question. My WAMU VISA is one of my oldest, with a $3500 CL, and the current balance on it is less than $200. If its been rate jacked and the APR maxed out, it will be closed. I have 4 years of good history with the account, its served its purpose. I have other cards with better rates with decent credit limits, and I have been cutting down on the number of credit cards I have. Getting several to get a good credit history seemed like a good idea at one time, but I really don't need all of them. I'm going to cut it down to probably just one VISA and one M/C, and a couple of store cards.

Update - I sent CSR a message asking about my APR again, and they answered this time. APR jumped up to 24.99%, thats double what it had been. Looks like WAMU and the VISA I have with Chase just made the top of my cards to cancel list.

Well I am going to check around for a balance transfer for this card, I have about 1000.00 in medical bills on it and I did not like being blindsided by CHASE...

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Jestor, I wasn't commenting on anything you said. It was more the other poster's comment left of: what difference does it make if you PIF every month? I was just pointing out that it's not likely the world will come to a screeching halt with every credit card user being a PIF-er, now and forever. Small ratejacks are insulting and large ratejacks can be painful, depending on circumstances, and can limit us financially (those of us who would like to use credit as a tool on a basis of months or years now and then - as in whocares' example.)

I'm feeling your pain, that's what I was trying to say. And in some other personal finance blogs I read, there is a lot of non-sympathy out there in the form of "just never carry credit card debt and it won't be the problem. Just pay for everything with cash, always, and it won't be a problem." (Key word: Ramsey.)

I'm with you on the rate-jack resentment and I'm watching my WaMu very carefully - in fact, all of my cards.

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