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New Member
Posts: 6
Registered: ‎04-29-2009
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Chase "Letter of Doom"

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...?

Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
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Re: Chase "Letter of Doom"

[ Edited ]
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
New Member
Posts: 6
Registered: ‎04-29-2009
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Re: Chase "Letter of Doom"

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...
Established Contributor
Posts: 742
Registered: ‎12-19-2008
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Re: Chase "Letter of Doom"

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.
New Member
Posts: 6
Registered: ‎04-29-2009
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Re: Chase "Letter of Doom"

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!
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: Chase "Letter of Doom"

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.
Established Contributor
Posts: 742
Registered: ‎12-19-2008
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Re: Chase "Letter of Doom"

[ Edited ]

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!

 

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
Established Contributor
Posts: 742
Registered: ‎12-19-2008
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Re: Chase "Letter of Doom"


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.

 

+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.

Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
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Re: Chase "Letter of Doom"

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.

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Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Moderator Emeritus
Posts: 1,518
Registered: ‎04-20-2007
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Re: Chase "Letter of Doom"

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! 

EQ 814 / TU 815 / EX 842
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