Credit Cards

[tig]

I have a credit card with Chase but do not use it...I have it because I carried a balance with Providian and Providian became Chase.  The Amount I had with Providian was a balance transfer and gave me a very low interest rate.

Chase just notified me that they were raising the rate for new purchases to 16.24% and that if I did not agree to this  then I have tilll Aust 19 to close.  Should I close?  Will it hurt or help my credit rating to close ?  Will it hurt or help my credit rating if I don't close but continue to not use my card.

Soon after I received the latter notification, I received another letterfrom Chase saying they have decreased my credit line ue to:

1. "Too few accounts with time on file greater than 36 months" --what does that mean?

2.  "Bankcard balance grew too fast compared to credit limit and time on file"  - please explain this...this is confusing because I did not even use the card so the balance never grew, it only got less and less.

What are your recommendations regarding these situations?

[creditwherecreditisdue]

---

tig wrote:

I have a credit card with Chase but do not use it...I have it because I carried a balance with Providian and Providian became Chase.  The Amount I had with Providian was a balance transfer and gave me a very low interest rate.

Chase just notified me that they were raising the rate for new purchases to 16.24% and that if I did not agree to this  then I have tilll Aust 19 to close.  Should I close?  Will it hurt or help my credit rating to close ?  Will it hurt or help my credit rating if I don't close but continue to not use my card.

Soon after I received the latter notification, I received another letterfrom Chase saying they have decreased my credit line ue to:

1. "Too few accounts with time on file greater than 36 months" --what does that mean?

2.  "Bankcard balance grew too fast compared to credit limit and time on file"  - please explain this...this is confusing because I did not even use the card so the balance never grew, it only got less and less.

What are your recommendations regarding these situations?

---

Welcom to the forum, tig. 

To further assist you we are going to need some more information (both specific to this account and general credit picture).

To further inform yourself you need to read this carefully:

http://www.bankrate.com/finance/credit-cards/why-closing-an-account-hurts-score.aspx

Message Edited by creditwherecreditisdue on 07-28-2009 11:10 PM

[creditwherecreditisdue]

You are going to get much better assistance if you post your entire situation in this thread, tig.

Message Edited by creditwherecreditisdue on 07-28-2009 11:29 PM

[ice0901]

Could be worse. I had a $0 Balance on a WaMu Visa 1,800 Limit That I used every month for gas and coffee and the sent me a Letter last week stating they were closing my account and then sent a letter yesterday stating they were increasing my Apr to 16.24 I dont no if my account is open or close Chase is playing mind games....

[creditwherecreditisdue]

---

ice0901 wrote:

Could be worse. I had a $0 Balance on a WaMu Visa 1,800 Limit That I used every month for gas and coffee and the sent me a Letter last week stating they were closing my account and then sent a letter yesterday stating they were increasing my Apr to 16.24 I dont no if my account is open or close Chase is playing mind games....

---

If you have a balance and your account is going to be closed anyway you need to opt out.

[tig]

how do i post it on the thread you are recommending?

[VEEnVEGAS]

---

tig wrote:
how do i post it on the thread you are recommending?

---

She's only recommending that you read the above linked page. She asked that you give more information here on this thread.

[YoungEntrepeneur]

If you have a balance on the Chase card, you should close it and pay it off at the current interest rate. If you don't have a balance or if it's a small balance that you can pay off quickly, then keep the account open for age

[tig]

I am hesitating to close it becaause I keep reading that each time a credit card is closed it hurts the credit scote.  Please give feedback regarding this.

[haulingthescoreup]

---

tig wrote:
I am hesitating to close it becaause I keep reading that each time a credit card is closed it hurts the credit scote.  Please give feedback regarding this.

---

Please read fused's Closing Credit Cards.

If you do it right, there is no immediate hit on your scores.