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I have had HSBC Platinum since 2007 it was my second credit card and I have never once gotten a cli. It isnt growing with me and i paid late ONCE and they increased my apr from 14% to 29% and it has an annual fee of $59. Will it hurt my credit score much if I cancel it? My current credit score is 604.
Target store 2007 $500cl
HSBC Platinum 2007 $300cl 29.9%apr $59AF
Hooters 2008 $1650cl 24.24%apr
RZMC Gold 2008 $500cl 21.74%apr $59AF
Victorias Secret 2010 $880cl
Macy's 2010
Walmart store 2010 $1000cl
Chevron 2010 $800cl
Bealls 2010 $660cl
Old Navy 2011 $300cl
What Cap1 deal?? I did actually call HSBC today and was transferred to a supervisor and she said she could not cancel or waive AF, nor could she give me a cli. Even after saying I was going to close the card she still wouldnt budge. :-/
OP - if this is your only bank card, I would strongly consider keeping it open. At first glance, it appeared that your other cards are all merchant cards (but I may have missed something there). FICO likes to see at least one bank card, and you will very likely lose FICO points if you close your only one.
If I recall correctly, the new credit card legislation includes guidelines that one late payment does allow creditors to up your APR for a set time period - maybe someone can chime in on how long that is. After that point, if you have no additional lates, IIRC, you will regain your old APR. And you may want to goodwill the late at that point. Then it may be time to app for a better bank card - but make sure you've got some age on that late or have it GW'd off before hitting the app button for a new bank card.
IMO, it's worth the annual fee to keep it open at this point - it's serving you well FICOwise and history wise as well. Just keep 'em happy until you're ready for the next step.
Thank you for your response.. My Hooters card is a bank card with a 1650cl, also I have the reward zone mastercard which is also hsbc
@Anonymous wrote:OP - if this is your only bank card, I would strongly consider keeping it open. At first glance, it appeared that your other cards are all merchant cards (but I may have missed something there). FICO likes to see at least one bank card, and you will very likely lose FICO points if you close your only one.
If I recall correctly, the new credit card legislation includes guidelines that one late payment does allow creditors to up your APR for a set time period - maybe someone can chime in on how long that is. After that point, if you have no additional lates, IIRC, you will regain your old APR. And you may want to goodwill the late at that point. Then it may be time to app for a better bank card - but make sure you've got some age on that late or have it GW'd off before hitting the app button for a new bank card.
IMO, it's worth the annual fee to keep it open at this point - it's serving you well FICOwise and history wise as well. Just keep 'em happy until you're ready for the next step.
From this thread about the Credit Card Act:
If you are reported as delinquent on your credit card payments for 60 days your APR can be increased, but it must return to the old rate if you make 6 consecutive payments thereafter.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
Thanks MVV. So a single 30 day late isn't enough to up the APR? Cool beans!
@MarineVietVet wrote:
@Anonymous wrote:OP - if this is your only bank card, I would strongly consider keeping it open. At first glance, it appeared that your other cards are all merchant cards (but I may have missed something there). FICO likes to see at least one bank card, and you will very likely lose FICO points if you close your only one.
If I recall correctly, the new credit card legislation includes guidelines that one late payment does allow creditors to up your APR for a set time period - maybe someone can chime in on how long that is. After that point, if you have no additional lates, IIRC, you will regain your old APR. And you may want to goodwill the late at that point. Then it may be time to app for a better bank card - but make sure you've got some age on that late or have it GW'd off before hitting the app button for a new bank card.
IMO, it's worth the annual fee to keep it open at this point - it's serving you well FICOwise and history wise as well. Just keep 'em happy until you're ready for the next step.
From this thread about the Credit Card Act:
If you are reported as delinquent on your credit card payments for 60 days your APR can be increased, but it must return to the old rate if you make 6 consecutive payments thereafter.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
Sorry to jump in here, but here's where my confusion lies. Most creditors clearly explain that they can and will increase the APR if you're late, to the maximum usally above 20%. But it also says that the penalty will apply indefinitely to new purchases. Whereas, old balances will go back down to the old limit after six consecutive payments. I think that's correct.
@kc12286 wrote:
Sorry to jump in here, but here's where my confusion lies. Most creditors clearly explain that they can and will increase the APR if you're late, to the maximum usally above 20%. But it also says that the penalty will apply indefinitely to new purchases. Whereas, old balances will go back down to the old limit after six consecutive payments. I think that's correct.
At the risk of putting readers to sleep here is the applicable section of the Act that deals with this.
SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE INCREASES APPLICABLE TO OUTSTANDING BALANCES.
(a) IN GENERAL.—In the case of any credit card account under an open end consumer credit plan, no creditor may increase any annual percentage rate, fee, or
finance charge applicable to any outstanding balance, except as permitted under subsection (b).
(b) EXCEPTIONS.—The prohibition under subsection (a) shall not apply to—
(1) an increase in an annual percentage rate upon the expiration of a specified period of time, provided that—
(A) prior to commencement of that period, the creditor disclosed to the consumer, in a clear and conspicuous manner, the length of the period and the annual percentage rate that would apply after expiration of the period;
(B) the increased annual percentage rate does not exceed the rate disclosed pursuant to subparagraph (A); and
(C) the increased annual percentage rate is not applied to transactions that occurred prior to commencement of the period;
(2) an increase in a variable annual percentage rate in accordance with a credit card agreement that provides for changes in the rate according to operation of an index that is not under the control of the creditor and is available to the general public;
(3) an increase due to the completion of a workout or temporary hardship arrangement by the obligor or the failure of the obligor to comply with the terms of a workout or temporary hardship arrangement, provided that—
(A) the annual percentage rate, fee, or finance charge applicable to a category of transactions following any such increase does not exceed the rate, fee, or finance charge that applied to that category of transactions prior to commencement of the arrangement; and
(B) the creditor has provided the obligor, prior to the commencement of such arrangement, with clear and conspicuous disclosure of the terms of the arrangement (including any increases due to such completion or failure); or
(4) an increase due solely to the fact that a minimum payment by the obligor has not been received by the creditor within 60 days after the due date for such payment, provided that the creditor shall—
(A) include, together with the notice of such increase required under section 127(i), a clear and conspicuous written statement of the reason for the increase and that the increase will terminate not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time from the obligor during that period; and
(B) terminate such increase not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time during that period.
It seems unclear (to me at least) whether that applies to old or new or all charges. Someone smarter than I am (that won't take much) will need to figure it out.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".