Reply
New Member
Posts: 7
Registered: ‎07-08-2007
0

Help?!

I've been following these boards for a few months and have found them to be a wealth of credit information.  Currently, I'm aggressively trying to pay about 21k in credit card debt that I racked up when I was in college.  I pay a total of 1,000 down on this debt monthly.

Bank of America     Limit: 19,900   Balance: 7,253 @ 8.23%  Pay $700 monthly
Chase                    Limit: 6,500    Balance 4,896 @ 3.99%    Pay 99.00 monthly
WellsFargo             Limit: 11,100  Balance 8,686 @ 7.65%    Pay 150.00 monthly

I recently received a letter from Chase informing me that my promotional rate will end next month and not in 2011 as previously suggested when I transferred the balance in Feb. My rate for Chase will be more than 20%.  I know I need to try and transfer the balance, but I'm not sure if I should attempt to apply for a new credit card or ask for a CLI from Wellsfargo.  I can't transfer the Chase balance to Bank of America because I rejected their rate hike a few months ago.  The account is not closed, but if I use the card my rate will increase to 14%.  TransUnion is 745 and Equifax is 696.  What should be my next step?

Also, my car lease ended this week and I purchased the vehicle so I my credit was pulled once this week.  Before that, it hadn't been pulled in about 3 yrs. 

Thanks for the help!
Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
0

Re: Help?!

[ Edited ]

Spark welcome to the Forum,

 

You have very low rates that can play in your favor.  Your option would be to pay more on the Chase card since the rate will increase..  Also, since its the card with the lowest balance, you should decrease the amount you pay to BOA and WellsFargo until you have Chase paid off. And do not use BOA card at all while paying off Chase.  You don't want the rate to increase to 14% on the BOA while paying off Chase.  You can do it.

 

If you can, look at your budget and see what you can temporarily cut while you pay the Chase card off.

Message Edited by DI on 08-06-2009 09:04 PM
Established Member
Posts: 50
Registered: ‎04-28-2009
0

Re: Help?!

Something else to consider. If the Chase card is going to be active at that rate, call them up and see if they would increase your credit limit, transfer the balances from the other two cards to the Chase card, that way you are paying one card at a lower rate. Otherwise, paying $700 a month to BoA is silly, you always want to pay the lowest card off first, even if it has the higher rate. Another thing to consider, if you belong to a good credit union, try to get a personal loan from them for the amount of the debt. Pay all 3 cards off then pay just back the credit union at a lower rate.
Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
0

Re: Help?!


arrgy42 wrote:
Something else to consider. If the Chase card is going to be active at that rate, call them up and see if they would increase your credit limit, transfer the balances from the other two cards to the Chase card, that way you are paying one card at a lower rate. Otherwise, paying $700 a month to BoA is silly, you always want to pay the lowest card off first, even if it has the higher rate. Another thing to consider, if you belong to a good credit union, try to get a personal loan from them for the amount of the debt. Pay all 3 cards off then pay just back the credit union at a lower rate.

Why would the OP want to transfer the balances to the Chase card that is going to be more than 20% as the OP stated?  That is not good advice.

 

I gave the OP the best option. I hope he or she take heed to it.

 

 

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Help?!

Pay off the lowest balance first, when that is paid off use that money to pay the next lowest one, etc.

New Member
Posts: 7
Registered: ‎07-08-2007
0

Re: Help?!

I just want to thank everyone for the great feedback.  I'm not sure if I made myself clear, I was considering asking WellsFargo for a CLI so I could transfer some of the balance from my Chase once that APR jumps to over 20% Would that be a good idea or should I just pay 700 a month until I've paid it off?
Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Help?!

Why are they prematurely ending your 3.99% promo rate? What's the deal there? If that was a BT and you had an offer a deal's a deal.
Frequent Contributor
Posts: 318
Registered: ‎09-25-2008
0

Re: Help?!


creditwherecreditisdue wrote:
Why are they prematurely ending your 3.99% promo rate? What's the deal there? If that was a BT and you had an offer a deal's a deal.

I agree. I'm not so sure that raising your rate before the agreed upon date would hold up in court. I would check your recent letter from Chase again. I have a 5.9% from Capital One for the life of the loan. When I agreed to it there were stipulations which would allow Capital One to raise the interest rate, their own discretion was not one of the reasons. Also, I recently got an ammendment to my Capital One card which raised the standard rate. Reading it over the second time I realized they weren't talking about the promotional rate. This may or may not apply to the letter that Chase sent you, but I would recheck it. 

 

Lastely, don't act in haste. Pay minimums on all your cards and hold the extra a few extra days till you decide who's advice best fits you. My advice would be to pay only the minimums and wait till you see for sure the interest rate hike on a statement. I also think, but I'm not totally sure, that you can see the current interest rate on the web site. The second you know you got hit, take the extra cash and pay Chase down while paying minimums on everything else. 20% isn't that much over a month, but over a year turns out to be horrendous. Let me also put it this way. What if I could sucker you into paying me a ton of money that I promised you at a low rate so I could then get new business from you at a much higher rate?

 

Just giving you my thoughts. Good luck. Fair Issac's guy is saying we are doing much better with our credit and it seems so are you.

TransUnion/Equifax
746/754
Date: 9/24/2009/10/02/2009
New Member
Posts: 7
Registered: ‎07-08-2007
0

Re: Help?!

Karatz,

 

Thank you for your very insightful advice.  It seems I misread the Chase change in terms notice.  I wasn't certain raising my promotional rate without cause was legal, but I thought Chase was attempting to squeeze every last dime out of me before the new CC laws go into effect I will have the oportunity to pay off my Bank of America Card and pay down my Wellsfargo before the promotional rate ends.  This just made my weekend!

Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Help?!

Time to take a deep breath and enjoy your favorite adult beverage!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.