Credit Cards

[kc12286]

I just got a notice in the mail saying my commerce bank credit card will now be changed to a TD Easy Rewards card. I'm not too thrilled about this becuase currently I get 3 point for every $1 I spend, under the new agreement, I only get 1 point and I can no longer use the Visa Rewards program.  In addition it looks like my APR will increase and I'll now be charged late fee and over limit fees, which I'm not currently being charged. I don't really want to cancel the card since I've had it for more than 4 years and I already canceled another card.

Are all the companies increasing their fees? I know TD Bank is doing it because they bought out Commerce, but it sucks for me because I had accrued a lot of points, which I'll now have to use or they'll expire. This sucks, it was the best card I had because of the points system.

[haulingthescoreup]

A lot seem to be, yes. Part of it's due to the requirement for having some percentage of cash reserves to cover extended credit, and part is probably due to the upcoming changes in credit card regulation, which don't take effect for a year or more. Looks like the banks are scrambling to establish new, more punitive norms, so that they'll have more wiggle room when the new regs kick in.

As long as you don't carry balances, it's irrelevant. Annoying, though, if you plan to make a major purchase and take 3 months to pay it off, or something.

[kc12286]

Exactly. And since I had so many points racked up, it's really annoying that. Between now and June, I can continue to make purchase and get 3 points but as soon as that date hits, it will get dropped down.

[haulingthescoreup]

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kc12286 wrote:
Exactly. And since I had so many points racked up, it's really annoying that. Between now and June, I can continue to make purchase and get 3 points but as soon as that date hits, it will get dropped down.

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I'll be a lot more bugged if and when my rewards programs start tanking.

Message Edited by haulingthescoreup on 04-18-2009 09:54 AM

[kc12286]

That's what happened with one of my other cards. I was over my limit, through no fault of mine own. They took my points, all of them, and raised the apr. So I canceled it and started paying it off.

They're lowering the credit limits, raising the aprs and forcing you to accept the terms or they close the account. It sucks, 

I just got a notice from GE Money on my Gap Card telling me they dropped my credit limit from 600 to 200 because of my revolving accounts. Luckily, I have no charges on there, so it's not a issue. But for people who's limits are being decreased, they're getting overage fees. How is that right?

[txjohn]

Those CCC's and banks with high levels of defaults and losses are apparently raising APR's.  As we all know, all costs are eventually passed on to the consumer.  Those who pay, pay all, those who don't pay, don't pay.

[l9ikjam]

All of my CC's raised my APR except my CU's, Us Bank and Juniper. My Cap1 card went from 4.9 to 24.9. I just see it as these companies must not want my business. I PIF but I just don't like to feel someone is taking avantage of me. What;s the point of making your credit score better if you're gonna continue to get treated like u have bad credit.

[jmbfl]

None of my APR's have been increased. In fact three of my seven cards have had their APR's reduced by reason other than that of a LIBOR/Prime Rate reduction: Discover, from what I believe was 11.99% to 9.99% (the lowest rate now obtainable for a new account is 10.99%); Citibank Diamond Preferred to 6,99% (based on a phone call after the account was opened, but not because I was RJ'ed) and Direct Merchants Bank (HSBC) from 27.99% to 6.99% because I called and complained about the ridiculous string of increasing RJ'ed rates they stuck me with. The 6.99% is a nine month promo rate - to be revisited in September, which is fine with me.

[MattH]

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haulingthescoreup wrote:
A lot seem to be, yes. Part of it's due to the requirement for having some percentage of cash reserves to cover extended credit, and part is probably due to the upcoming changes in credit card regulation, which don't take effect for a year or more. Looks like the banks are scrambling to establish new, more punitive norms, so that they'll have more wiggle room when the new regs kick in.

As long as you don't carry balances, it's irrelevant. Annoying, though, if you plan to make a major purchase and take 3 months to pay it off, or something.

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My rates are all over the map; like you I don't carry balances so the only interest my wife and I pay is the mortgage.  My lowest CC rate is Chase with 5.24% for purchases and the others (AMEX, Citi, & Discover) are all quite a bit higher (double digits).  The rate increase that I found most offensive was AMEX because I've had that account for nearly 27 years with excellent history.  Citi recently raised the rate on my wife's card; like me she doesn't pay them any interest but she was worried that this meant something negative about her credit rating until I told her about AMEX raising my rate.  Do these companies actually think I will ever pay double-digit interest?

The only card to charge me annual fees is AMEX, which I tolerate because it is my oldest account and I want to keep that history forever.  If any other company tries to charge me a monthly or yearly fee I will dump them and get another card from somebody smart enough to realize right now they need customers like me a lot more than I need them.

Message Edited by MattH on 04-19-2009 12:17 AM

[txjohn]

Wow, congrats jm!  Very nice to have the whole line up give you rate decreases. 

I guess like Matt said, though, it won't make a lot of difference if no balances are carried, but if you ever do.....saves quite a bit.