Do CC Companies Get Tired of Good Consumers?

[longtimelurker]

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@Anonymous wrote:

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@fltireguy wrote:

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low Fico - good target for poaching and hitting them with the unviersal default rate of 29% when they see something on another account

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Remember, UNiversal Default is dead and gone these days.

@BUT.. the low FICO people are getting punished even worse to start with.. by people like First Premier @ a nice low 36% APR 

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"Universal Default is dead and gone these days".

Is the farthest from the truth. It's quite alive and well..

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Well, I doubt it is "farthest from the truth" as the CARD Act specifically forbids it.   Now certainly nothing prevents issuers from increasing APRs after the firsr year, but now they require notice to raise on future balances and can't increase on existing balances until you are 60 days late with that issuer.   As noted in 

https://www.thebalance.com/does-universal-default-still-exist-for-credit-cards-960707

within an issuer, you can get punished on one card for being late on another, but not between issuers.

So "farthest from the truth"? No. Too optimisitc?  Maybe.

[Anonymous]

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@longtimelurker wrote:

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@Anonymous wrote:

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@fltireguy wrote:

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low Fico - good target for poaching and hitting them with the unviersal default rate of 29% when they see something on another account

---

Remember, UNiversal Default is dead and gone these days.

@BUT.. the low FICO people are getting punished even worse to start with.. by people like First Premier @ a nice low 36% APR 

---

"Universal Default is dead and gone these days".

Is the farthest from the truth. It's quite alive and well..

---

Well, I doubt it is "farthest from the truth" as the CARD Act specifically forbids it.   Now certainly nothing prevents issuers from increasing APRs after the firsr year, but now they require notice to raise on future balances and can't increase on existing balances until you are 60 days late with that issuer.   As noted in 

https://www.thebalance.com/does-universal-default-still-exist-for-credit-cards-960707

within an issuer, you can get punished on one card for being late on another, but not between issuers.

So "farthest from the truth"? No. Too optimisitc?  Maybe.

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As I said, farthest from the truth. Rates can be rasised on any future balances for any reason whatsoever with 45 days notice. 

If you pay late or not at all to any lender they can raise your rate with the 45 days notice.

If your score is lowered for any reason. Excessive debt to income ratio, or another reason the universal default clause can be enforced.

The card act has eliminated some of the aspects of universal default but it certainly  has not dismantled it completely.

This is why creditors do monthly account reviews. Looking for adverse changes.

The remnants of universal default is VERY MUCH ALIVE.

[Anonymous]

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@Anonymous wrote:

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@longtimelurker wrote:

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@Anonymous wrote:

---

@fltireguy wrote:

---

low Fico - good target for poaching and hitting them with the unviersal default rate of 29% when they see something on another account

---

Remember, UNiversal Default is dead and gone these days.

@BUT.. the low FICO people are getting punished even worse to start with.. by people like First Premier @ a nice low 36% APR 

---

"Universal Default is dead and gone these days".

Is the farthest from the truth. It's quite alive and well..

---

Well, I doubt it is "farthest from the truth" as the CARD Act specifically forbids it.   Now certainly nothing prevents issuers from increasing APRs after the firsr year, but now they require notice to raise on future balances and can't increase on existing balances until you are 60 days late with that issuer.   As noted in 

https://www.thebalance.com/does-universal-default-still-exist-for-credit-cards-960707

within an issuer, you can get punished on one card for being late on another, but not between issuers.

So "farthest from the truth"? No. Too optimisitc?  Maybe.

---

As I said, farthest from the truth. Rates can be rasised on any future balances for any reason whatsoever with 45 days notice. 

If you pay late or not at all to any lender they can raise your rate with the 45 days notice.

If your score is lowered for any reason. Excessive debt to income ratio, or another reason the universal default clause can be enforced.

The card act has eliminated some if the aspects of universal default but it certainly  has not dismantled it completely.

This is why creditors do monthly account reviews. Looking for adverse changes.

The remnants of universal default is VERY MUCH ALIVE.

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And you are wrong between lenders.

If you become late on a Chase card, AMEX with 45 days notice can increase your APR on future purchases.

Or

AMEX can close your account if they choose.

Yes, farthest from the truth.....

[longtimelurker]

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@Anonymous wrote:

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@Anonymous wrote:

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@longtimelurker wrote:

---

@Anonymous wrote:

---

@fltireguy wrote:

---

low Fico - good target for poaching and hitting them with the unviersal default rate of 29% when they see something on another account

---

Remember, UNiversal Default is dead and gone these days.

@BUT.. the low FICO people are getting punished even worse to start with.. by people like First Premier @ a nice low 36% APR 

---

"Universal Default is dead and gone these days".

Is the farthest from the truth. It's quite alive and well..

---

Well, I doubt it is "farthest from the truth" as the CARD Act specifically forbids it.   Now certainly nothing prevents issuers from increasing APRs after the firsr year, but now they require notice to raise on future balances and can't increase on existing balances until you are 60 days late with that issuer.   As noted in 

https://www.thebalance.com/does-universal-default-still-exist-for-credit-cards-960707

within an issuer, you can get punished on one card for being late on another, but not between issuers.

So "farthest from the truth"? No. Too optimisitc?  Maybe.

---

As I said, farthest from the truth. Rates can be rasised on any future balances for any reason whatsoever with 45 days notice. 

If you pay late or not at all to any lender they can raise your rate with the 45 days notice.

If your score is lowered for any reason. Excessive debt to income ratio, or another reason the universal default clause can be enforced.

The card act has eliminated some if the aspects of universal default but it certainly  has not dismantled it completely.

This is why creditors do monthly account reviews. Looking for adverse changes.

The remnants of universal default is VERY MUCH ALIVE.

---

And you are wrong between lenders.

If you become late on a Chase card, AMEX with 45 days notice can increase your APR on future purchases.

Or

AMEX can close your account if they choose.

Yes, farthest from the truth.....

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Well, repeating it doesn;t really make it true.   The original statement would be "farthest from the truth" if the actual situation was something like "It is now compulsory for all lenders to rate jack whenever anyone even looks like  they might be thinking of paying anyone late"   I was just criticizing the hyperbole in your statement, something like "maybe legally but in impact a lot is still there" would be far more meastured.

The between issuers/within an issuer, as in the link, focussed on the need for notice, not needed within an issuer.

And the fact that you cannot be rate jacked on EXISTING balances due to default with others is important, this was one of the very nasty impacts of universal default.   At least now you have the (potential) option of not making new purchases with lenders who have increased your rates on future balances, and if your account is closed, you pay off at the old rate.

[Anonymous]

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@longtimelurker wrote:

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@Anonymous wrote:

---

@Anonymous wrote:

---

@longtimelurker wrote:

---

@Anonymous wrote:

---

@fltireguy wrote:

---

low Fico - good target for poaching and hitting them with the unviersal default rate of 29% when they see something on another account

---

Remember, UNiversal Default is dead and gone these days.

@BUT.. the low FICO people are getting punished even worse to start with.. by people like First Premier @ a nice low 36% APR 

---

"Universal Default is dead and gone these days".

Is the farthest from the truth. It's quite alive and well..

---

Well, I doubt it is "farthest from the truth" as the CARD Act specifically forbids it.   Now certainly nothing prevents issuers from increasing APRs after the firsr year, but now they require notice to raise on future balances and can't increase on existing balances until you are 60 days late with that issuer.   As noted in 

https://www.thebalance.com/does-universal-default-still-exist-for-credit-cards-960707

within an issuer, you can get punished on one card for being late on another, but not between issuers.

So "farthest from the truth"? No. Too optimisitc?  Maybe.

---

As I said, farthest from the truth. Rates can be rasised on any future balances for any reason whatsoever with 45 days notice. 

If you pay late or not at all to any lender they can raise your rate with the 45 days notice.

If your score is lowered for any reason. Excessive debt to income ratio, or another reason the universal default clause can be enforced.

The card act has eliminated some if the aspects of universal default but it certainly  has not dismantled it completely.

This is why creditors do monthly account reviews. Looking for adverse changes.

The remnants of universal default is VERY MUCH ALIVE.

---

And you are wrong between lenders.

If you become late on a Chase card, AMEX with 45 days notice can increase your APR on future purchases.

Or

AMEX can close your account if they choose.

Yes, farthest from the truth.....

---

Well, repeating it doesn;t really make it true.   The original statement would be "farthest from the truth" if the actual situation was something like "It is now compulsory for all lenders to rate jack whenever anyone even looks like  they might be thinking of paying anyone late"   I was just criticizing the hyperbole in your statement, something like "maybe legally but in impact a lot is still there" would be far more meastured.

The between issuers/within an issuer, as in the link, focussed on the need for notice, not needed within an issuer.

And the fact that you cannot be rate jacked on EXISTING balances due to default with others is important, this was one of the very nasty impacts of universal default.   At least now you have the (potential) option of not making new purchases with lenders who have increased your rates on future balances, and if your account is closed, you pay off at the old rate.

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You can disguise it anyway you want. It still exists.

[Anonymous]

Who knows? I kinda try not to overthink. Move on if im not happy. Slow and steady wins the race. Diversify. 

[austinguy907]

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@Anonymous wrote:

Who knows? I kinda try not to overthink. Move on if im not happy. Slow and steady wins the race. Diversify. 

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LMAO!

It's been such a heated debate on whether it exists or not.... frankly I don't see the debate if it's still fact but under a different name / guise.  Even if they don't call it UD anymore they still react the same way when they spot things on your SP that are cause for concern.  It seems so many around here are forgetting the old days when banks were transparently evil and classified people accordingly for life.  Just take a look at some of the horror stories about being stuck at 29% for the life of a card when something triggers that penalty.  Just because it's not talked about much anymore doesn't mean it's not there.  Yes, the sky is blue, the sun is red, and fish breathe under water. Oh, and the earth is not flat

[Anonymous]

Amen, austinguy907!!

[Anonymous]

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@Anonymous wrote:

Who knows? I kinda try not to overthink. Move on if im not happy. Slow and steady wins the race. Diversify. 

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@Anonymous wrote:

Who knows? I kinda try not to overthink. Move on if im not happy. Slow and steady wins the race. Diversify. 

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LOL!

[zerofire]

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@Anonymous wrote:
Just wondering if Credit Card Companies get tired of consumers being perfect?

For example say you have a 50k CL you regularly spend say 5-10k a month and PIF. You've had them for 5 years and never paid a dime in interest or late fees. You're benefitting from them, and being a very responsible consumer, but I can't help but wonder if creditors hate this?

It seems counterintuitive because if you're late or have a high balance your FICO score goes down and you seem like a low quality candidate for CC's.

I've seen people open an account with a bank (Chase) spend 30k out of a 50k CL within a month and PIF. Soon after they had their account closed because they're "too risky", even though they paid in full. So it doesn't make much sense to me.

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That just describes an average customer.  Good customers don't pay on time or carry a balance between statements but when they pay up they pay everything including intrest and fees. Now being an average customer also has a point of bringing your issuer swipe fees that they normally will not get and while the bank will not get rich on you it will at least cover the expenses. Remember banks want to make money and are willing to realisticly work with you to their benifit so that you pay them back, hopefully with intrest. They take on calculated risk for their reward.