Credit Cards

[MattH]

My wife and I paid most of our monthly bills last night, including Chase Visa which this month had a rather large balance of about $3500 because it included a $2000 charitable donation (for a scholarship in memory of my grandmother at the University where my parents used to teach).  We paid in full as usual, but I was astounded to notice the minimum payment on that Chase Visa was just $70.00!  Even if they didn't ratejack and kept the APR at its current 5.24% it would take about FIVE YEARS to pay off the balance at $70.00 per month.

Even in postdoctoral days when we sometimes had to carry a balance for cash flow reasons we always paid at least 25% of the balance on every card every month.

[PennyShine]

Juniper CC requires a friend to only pay $40 a month....interest charges, over the limit fees, plus that wonderful "insurance" cost him (on average) $100 a month...

Yes, you read that correctly.  Additional, non controlled, charges each month EXCEED the minimum payment requirement.  

This is the same cc company that misapplies payments (you send it in, they cash the check, but do not give you credit for it).

This is the same cc company that had a problem with their online site that would not allow customers to see their balances or make payments.  Their solution was to send an apology email out and tell everyone that they are credited back all late fees, over the limit fees, and interest.  Ha!

Ha!  When the friend asked for it -- the credits promised to automatically apply back to the account -- they said you have to file a claim and dispute the charges!!!  After they investigate, they will respond.

Juniper is one that I recommend people avoid. 

[Uborrow-Upay]

I don't think 2% is all that unusual, MattH. I've received that as a minimum on a Chase account since its inception, and recently a Cap1 account reduced its minimum to 1%. Of course, it would take forever to pay off at that rate, but it is nice to know a payment could go that low if need be, without a default.

[woopah]

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Uborrow-Upay wrote:

I don't think 2% is all that unusual, MattH. I've received that as a minimum on a Chase account since its inception, and recently a Cap1 account reduced its minimum to 1%. Of course, it would take forever to pay off at that rate, but it is nice to know a payment could go that low if need be, without a default.

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Perhaps companies are trying to help its customers not default.  I find that hard to believe, but my revolving balance of $4k on my Chase no interest card was only about $86 dollars, which would have taken over 4 years to pay off with no interest, but the interest would have started being charged in March, had I not paid the card off this month, so it would have taken a LOT longer to pay off. 

[Uborrow-Upay]

I think it would absolutely be in its best interests for any bank/lender to help a customer to not default.

The old adage, "You can sheer a sheep many times, but you can skin him only once" comes to mind, for some strange reason.

[woopah]

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Uborrow-Upay wrote:

I think it would absolutely be in its best interests for any bank/lender to help a customer to not default.

The old adage, "You can sheer a sheep many times, but you can skin him only once" comes to mind, for some strange reason.

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I completely agree, I just don't think banks/lenders are doing that. 

Afterall, Chase is the one that is adding fees to their low interest rate BT's and upping the minimum payment because, 'They want their money'.  For some people having the min payment due upped to 5% is doable, for others it will break the bank. 

[ChesterPDexter]

What's your point, MattH?  That you are a better and smarter payer than some people?  Or that banks are not our friends, always with our best interests at heart?

That is hardly news, and I'm sure you already know it.

Message Edited by ChesterPDexter on 02-23-2009 06:57 AM

[Scout65]

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ChesterPDexter wrote:

What's your point, MattH?  That you are a better and smarter payer than some people?  Or that banks are not our friends, always with our best interests at heart?

That is hardly news, and I'm sure you already know it.

Message Edited by ChesterPDexter on 02-23-2009 06:57 AM

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Not quite sure of your tone ChesterPDexter. 

I think the point of the OP was simply that he was astonished with the low payment due on the CC.  I am always amazed at the low minimum amounts due on my own CCs.  We all know that if you only pay the minimum due on a large balance, it can take years to pay the balance off.  That is why I PIF.

[haulingthescoreup]

I was amazed that on a 0% BT, BofA was only charging 1%.

My assumption was that they hoped that I would not pay off the balance in 15 months and would then have to start giving them some interest. Silly them.