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Chase CC interest rate increase

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ny7007
Established Member

Chase CC interest rate increase

I got a notice in the mail yesterday that said that Chase was increasing the interest rate on my credit card to 20.99% on any balance, not just cash advances or transfers.  Last year, they did the same thing, but it only applied to cash advances and transfers.  Plus, last year, they said that I could write to them at the address given and it would not apply to me.  I did that and forgot about it--until now.    This time, the notice said that if I dispute the intrest rate increase that they would cancel the card.  I haven't used the card in probably 5 years or so.  Scorewatch said that my FICO score is about 773.   Should I dispute the interest increase, which would allow Chase to cancel the card or should I just keep holding on to it and not use it?  Does it look worse on your credit score if the consumer cancels the card voluntarily or if the credit card company cancels the card? Why would they do this now?   It's unbelievable that the taxpayers and credit consumers (one in the same) have no vote in this whole financial fiasco lately, yet we're the ones left bailing out the financial institutions--on both ends, via the taxes we pay and as their customers!
Message 1 of 6
5 REPLIES 5
Uniqua
Established Contributor

Re: Chase CC interest rate increase

If you haven't used the card in five years, why worry about an APR increase? You're not paying it!

If you don't want the card, cancel it yourself (looks better than the CCC canceling it). Should you decide to keep the card, use it periodically and PIF. Regardless of what the APR is, if you are not carrying balances you have nothing to worry about.
Message 2 of 6
BBYGRL
Established Contributor

Re: Chase CC interest rate increase

IMHO - You will lose " 5 years age" if the account is closed. I would keep it and PIF if you use to avoid interest.

 

 

10/08 - EX 795 / EQ 816 / TU 806
6/09 - EQ 763 / TU 770

Starting Score (2/2010): TU-767, EQ-745
Current Score (2/2010): TU-767, EQ-745
Goal Score (12/2010): TU-780, EQ-790


Take the FICO Fitness Challenge
Message 3 of 6
fishbjc
Senior Contributor

Re: Chase CC interest rate increase

Keep it open, use it occasionally for a nonfat latte with lowfat whipped.   Or something like that!Smiley Very Happy
Message 4 of 6
Miner
Frequent Contributor

Re: Chase CC interest rate increase

You don't lose any age when its closed until it falls off 10 years after the last update to your CRs.  The only issue with closing the card is the removal of the CL from your Utilization Calcuation.  But you may not need it.  The only card that you should work to keep is your oldest.  Any of the others are optional and depends on your credit situation and your goals.
Current FICO8: EQ:782, TU:754, EX:767 | 1x 30 day late 6yrs ago
AAoA: 10 years; AAoOA: 13 months; Credit Length: 21 years
INQ Eq: 3 / Tu: 5 (4 for auto) / Ex: 9 (5 for auto)
Message 5 of 6
FretlessMayhem
Senior Contributor

Re: Chase CC interest rate increase

I'd make a small purchase and PIF immediately. Why lose an active, positive TL when you don't have to?

 

Also, if the account is closed, the only difference it makes is if you apply somewhere and go under a manual review. In that case, closed by consumer may reflect better than closed by grantor, but that decision would probably be made by the new creditor. 

Here we go again...
Message 6 of 6
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