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...?
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
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.
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.
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.
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!