Chase Freedom: APR reduction vs. closing + reapp

[Ghoshida]

Hello!

I've got my Freedom for 14 months. Started with a measly $500 and a monstrous 22.99% APR. The APR hasn't kicked in yet, couple of statements with 0% promo remaining.

Since then, my credit improved (by about 100 points), got the CSP and the Southwest Premier; got some CLIs here and there and did some shuffling. Now the Freedom is at $4700. When the 0% promo gets over, I'm thinking of doing either of two things:

(a) Shuffle some more credit limits, get Freedom to $5k, make it Visa Sig, ask for APR reduction

(b) Move over Freedom CL to CSP, close Freedom, re-app for Freedom next year (24 months since I got this one), get the bonus and hopefully a much better APR.

I've heard that APR reduction with Chase is next to impossible; at the same time I don't want to be branded a churner. I don't at all like this APR. I won't carry a balance on this card but "you-never-know". 

What's the better of the two? Any other thoughts?

If I do close the Freedom, how long should I wait between closing and reapplying (apart from the 24 months since last app thing)?

[C24Webb]

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase.  I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now.  I've basically "sucked it up" and never expect a reduction.  I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.  

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted.  I applied last February and had 0% until this billing cycle.  I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out).  They gave me 0% for another year!  So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it.  A request can be made every six months.  Basically, I think there are better options for you than closing and reapping.  However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing.  Good luck!

[Anonymous]

Getting an APR reduction from Chase is like pulling teeth.  Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR?  Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction?  It won't make a difference.

[Anonymous]

I would keep the current line open, move all but $1000 to the CSP. Just use the freedom for the rotating categories. Doesn't CSP have 15.24%? If you ever need to carry a balance, you would use that one.

[thelethargicage]

Option B is the only one that works. FYI, I re-apped the day after I closed my original Freedom and still got the bonus.

[Anonymous]

I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.

[lg8302ch]

I have been there about a year ago and look at me now...my Freedom is 26 months old and I still have my lovely 22,99% APR .  I also first gave it a thought to re-apply but then figued what kind of gamble this would be and I might end up again with 22,99% APR and further cut my AAoA. Simply not worth it IMO.  In the meantime I got over it and now smile at this figure and will just never carry a balance on Freedom. Chase hopefully does not expect me to pay interest at these terms??

As for the PC to a Siggy it was also quite a hassle for me and only possible thru the EO. Reason was that with 22,99% APR it could not be a Signature card. Kind of a circle or me. So I decided to get some answers from the EO to what I could to to qualify for the Siggy in the future and that I would be ready to work on whatever Chase wants me to work on but I would need to know what that should be as I really was clueless.  Again received a standard answer  that Chase  will review accounts periodically and make their adjustments with the APR and then I might be eligible. That answer was not good enough and I wanted an explanation to what could be improved to become  eligible .. never got that answer but Chase sent me the Siggy instead. Mission accomplished. When all this happended my Fico EQ and EX were both over 800. Not good enough for Freedom Siggy but I got approved for Marriott and CSP both Signature cards with high limits.  Why do I qualify for CSP with high limit and not for Freedom Siggy? Nobody managed to get me this answer... I know I was a stubborn customer on the way to my Freedom Signature.

Good luck on your mission and I truly hope it gets smoother for you

[Ghoshida]

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@C24Webb wrote:

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase.  I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now.  I've basically "sucked it up" and never expect a reduction.  I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.  

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted.  I applied last February and had 0% until this billing cycle.  I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out).  They gave me 0% for another year!  So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it.  A request can be made every six months.  Basically, I think there are better options for you than closing and reapping.  However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing.  Good luck!

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Thanks for sharing your info Webb.

That's a a great point about Discover. In fact I did the same thing a week ago; asked them for APR reduction, and chose the 0% for 12 months instead of a permanent 2% reduction. I didn't know about trying it every 6 months. I have the card for almost 2 years; I only tried for CLIs. I recently came across a thread on Discover and another on Barclay and tried both and succeeded, and also on the Citi. My Discover also has 10k (my personal highest) so I'll put my balance there itself.

APR reduction on Chase is more of a psychological thing rather than an economic thing. I know it's not rational but it keeps bothering me. My AAoA isn't great (just about 15 months; the oldest card is 2.5 years). I don't plan to app for other cards in the near future; I'd only love to get a better deal on my existing cards. Sign-up bonuses (if any) are an added plus.

[Ghoshida]

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@Anonymous wrote:

Getting an APR reduction from Chase is like pulling teeth.  Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR?  Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction?  It won't make a difference.

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The only reason I think I shouldn't get the same APR is because I have a much better report now. Accounts are older, utilization is lower, got better cards, have overall higher CLs.

In fact I closed my Slate when it turned 5 months and started getting Chase pre-app offers on its website almost immediately afterwards. Guess what, the APR came down 5% (22.99-17.99). I know it's not the best but I believe the two cards belong to the same pricing category; so an improvement for Slate APR may mean an improvement for Freedom as well? Also I managed the CSP and the Southwest and they're all < 16%.

And by the time 24 months elapse, my scores may go up another 20-30 points (inquiries dropping off, AAoA increasing etc.) so even better rates? 

Is it a must-have card for me? Well it forms my trifecta (got checking and CSP) so fits very well. However my spouse also got the Freedom (much better offer and CL) and Chase allows transfer of MR points so I might just make use of hers. 

So why I want it? As I explained in my other reply, it's more emotional than economic. One, I believe I deserve better (got from other lenders, why not Chase) and two, just because. 

[Anonymous]

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@Ghoshida wrote:

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@Anonymous wrote:

Getting an APR reduction from Chase is like pulling teeth.  Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR?  Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction?  It won't make a difference.

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The only reason I think I shouldn't get the same APR is because I have a much better report now. Accounts are older, utilization is lower, got better cards, have overall higher CLs.

In fact I closed my Slate when it turned 5 months and started getting Chase pre-app offers on its website almost immediately afterwards. Guess what, the APR came down 5% (22.99-17.99). I know it's not the best but I believe the two cards belong to the same pricing category; so an improvement for Slate APR may mean an improvement for Freedom as well? Also I managed the CSP and the Southwest and they're all < 16%.

And by the time 24 months elapse, my scores may go up another 20-30 points (inquiries dropping off, AAoA increasing etc.) so even better rates? 

Is it a must-have card for me? Well it forms my trifecta (got checking and CSP) so fits very well. However my spouse also got the Freedom (much better offer and CL) and Chase allows transfer of MR points so I might just make use of hers. 

So why I want it? As I explained in my other reply, it's more emotional than economic. One, I believe I deserve better (got from other lenders, why not Chase) and two, just because. 

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Best chance if is you get a CSP and PC to Freedom.

Otherwise just keep checking preapprovals for better offer.