Chase "Letter of Doom"

[elargent]

I received a letter from Chase today that simply stated said we aren't making any money off of you so we are rasing your interest rate.

They are raising it from 6.99+ Prime (9.24) to 12.99+ Prime (16.24). I haven't been in the credit game for very long as I am only 19. I have 2 cards. Chase is my oldest at 18 mos and a 1100 CL. Wells Fargo is 15 mos and 1000 CL. I mostly PIF but I have been carrying a balance now because I hit a rough spot. I want to close the Chase account as I have never been late and am an excellent customer always paying abouve minimum and like I said in Full for the most part. Their lack of customer appreciation frustrates me. I want to close the card... Thing is it's my oldest and has my highest limit. What should I do? There is no way to pay in full at the time and the increase is set for Nov 1. If I opt out they cancel card but I get charged my original rate. Help...?

[DI]

That's unfortunate, but atleast they didn't cut your limit or close your account. Do you have a PenFed Credit card?  Maybe you  can do a BT before Nov. 1

Message Edited by DI on 09-27-2009 08:52 PM

[elargent]

No. No other credit cards. I have been looking into AMEX. But I know how picky they are when giving cards. And since I am limited with my credit experience, transunion 651 and experian 640, as well have 80% util I don't think They'll give me one in time to do the BT...

[plasticman]

Unfortunately, this is par for the course. You are not being singled out. My best long/short term suggestion, for you, will be to join a CU and apply for a CC there. Once approved, the best options for you may become much more clear.

[elargent]

I am part of a CU but the interest there isn't much better.... Maybe 1 or 2 Percentage points lower and I really like my 9.24 percent.... Anyone would, but especially a newbie like me!

[smallfry]

Keep the card always PIF. It is not personal. The card will help with payment history. Until you get more age it is not advisable to close it.

[plasticman]

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@elargent wrote:
I am part of a CU but the interest there isn't much better.... Maybe 1 or 2 Percentage points lower and I really like my 9.24 percent.... Anyone would, but especially a newbie like me!

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Two percentage points can be, based on the balance one carries, a significant cost of credit. The 9.24% you refer to is unlikely from any new CCC issuer, based on your credit scores only, considering the current economic climate.

edited for clarity

Message Edited by plasticman on 09-27-2009 07:46 PM

[plasticman]

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@smallfry wrote:
Keep the card always PIF. It is not personal. The card will help with payment history. Until you get more age it is not advisable to close it.

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+1

It will also help with you utilization for FICO scoring purposes, if you ever carry a balance on any revolving TL, not to mention your long term AAoA.

[Anonymous]

increases are across the board in this economy.

I would not close the account.

Wait until this time next year to see what the credit economy looks like.

You may wish to get another card

But....Like i said the markets are reascting, under 10% fixed cards are becoming elusive and not everyone qualifies for them anymore.

[Anonymous]

Hi elargent!

Saturday, I received the same change of terms notice from Chase.  The APR on my Chase Freedom World MasterCard will also increase to 12.99%+Prime.  I opened my account in 1994.  You can see my FICO scores in my signature line.

I hope that makes you feel a little better about this matter!