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Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
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The Chopping Block.

I know, I know. You should never close a CC. But, enough is enough. BofA has killed my APR (5.9F to 13.9V), WAMU/Chase stripped away my rewards and I already have a Chase Card I love (Freedom), and Citi refuses to give me a CLI, and I have an Amex Costco card to replace it with the same exact rewards.

 

So, I'm closing those three cards. However, I'll move the Chase/WAMU CL to my Chase Freedom. I don't need them and I don't want the head aches. I know mathmatically and FICO-wise I shouldn't. But, there's the principle of it all. They can't treat good customers like crap for no reason! I pay off all my CCs every month and I have superlative credit - so bye, bye! 

 

Anyone else doing the same?

 

I just hope Amex doesn't turn south on me, lol :smileysad:. And, I still have my PenFed, USAA, and Chase Freedom - which all have been amazing thus far!!  ::fingers crossed::

__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007

Re: The Chopping Block.

[ Edited ]

I definitely would NOT close my BofA account or my Citi card for the reasons you've given. And I especially wouldn't be counting on AMEX to be any better to you. Have you read the stories here about AMEX? 

 

 

So what if Bof A ratejacked you? Just don't carry a balance on the card. And it's not just Citi Bank that isn't giving CLIs at this time, you didn't get CLD, did you?

 

You don't have to give these cards a lot of use...sock drawer them and use occassionally for a small purchase, then PIF. They'll continue to help you as far as average age of accounts and utilization on your credit reports.

 

Of course you need to do what makes sense to you, but I would caution you not to make these decisions when you're upset and feeling personally insulted. It's not personal...it's business.

Message Edited by VEEnVEGAS on 04-18-2009 12:03 PM
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: The Chopping Block.

PJ -

 

There really is no principle.  If you are not getting the CLI's and CL's you want with existing cards, shop elsewhere.....

 

Go with a credit union, such as Alliant or PenFed (or Navy Fed if you qualify).  You will get further, faster and be treated with respect and friendly manner.

 

Don't cancel the cards.....even though you "feel like it."  This is the problem in credit.....feelings should not apply...leave them at home when evaluating and making credit decisions.  Just as you shouldn't impulse shop or app, you shouldn't impulse close or act.

 

The best thing you can do is the best thing you can do....so don't say you know better and yet do otherwise.  Do what you know, because you reap what you sow.

 

And as for APR....I hope you aren't carrying balances.  If not, then who cares on the APR?  If you are, then look at a BT to Alliant (no fees whatsoever). 

 

5.9% if great, but that rate is not common and not to be expected to last forever.  BoA is going to go after its 'reliable sources of income' which means YOU.  And income comes from interest and fees.  So, if you don't like the price, shop around.  If the card has no AF, then it isn't hurting you.

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: The Chopping Block.


Pj1369 wrote:

I know, I know. You should never close a CC. But, enough is enough. BofA has killed my APR (5.9F to 13.9V), WAMU/Chase stripped away my rewards and I already have a Chase Card I love (Freedom), and Citi refuses to give me a CLI, and I have an Amex Costco card to replace it with the same exact rewards.

 

So, I'm closing those three cards. However, I'll move the Chase/WAMU CL to my Chase Freedom. I don't need them and I don't want the head aches. I know mathmatically and FICO-wise I shouldn't. But, there's the principle of it all. They can't treat good customers like crap for no reason! I pay off all my CCs every month and I have superlative credit - so bye, bye! 

 

Anyone else doing the same?

 

I just hope Amex doesn't turn south on me, lol :smileysad:. And, I still have my PenFed, USAA, and Chase Freedom - which all have been amazing thus far!!  ::fingers crossed::


You're kidding, right? The adage is measure twice, cut once. I reckon you need to rethink your plan. I would not be doing anything right now that immediately lowers my available credit or eventually will lower my AAoA. Just not a real sound plan. You do have a SD, don't you?

Established Contributor
jaybird201
Posts: 672
Registered: ‎07-05-2008
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Re: The Chopping Block.

why do you have rewards cards when you're concerned about aprs? my card aprs average 16% because they're all rewards cards. i don't care about that though, because i never carry a balance. if i were worred about my aprs, i wouldn't keep a single rewards card in my wallet.

 

decide whether or not you're going to be a balance-carrier and fill your wallet with cards that will best suit your needs. take the rest and shove them in a sock drawer. if you're mad at bofa, the best way to hurt them is not using your card -- it's actually more costly for them to maintain an unused account than cancel an account.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: The Chopping Block.

I agree with Jaybird - reward cards are poor choices for carrying a balance....the APR's are always higher as are the fees usually.

 

If you want/need to carry a balance, go with the no perks, basic card which offers low fixed apr.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
0

Re: The Chopping Block.

I only have a balance on my BofA due to the low APR. I let my mom use it for BT. Once that BT is done that card is done. It was my low APR card for BTs and what have you...eventhough the last time I used it was years ago, outside of the recent BT for my mom.

 

Broadly, I'm not too worried about overall available credit. Right now, I'm around 95K in available credit, and again, all CCs are paid off monthly, except of the BofA - which I rejected the new terms to maintain the old APR on the BT balance. I'm also starting to infer my high use cards are afraid of giving me CLIs due to my extensive credit with some of the crappier cards (cards that have rewards I don't like)....

 

Hmmm...I do like that point that it cost them more to leave the cards open - haha :smileyhappy:. Maybe, I'll leave the Citi card open. As for the Chase/WaMu card...I'm not sure I want it. I have so many other cards. I just transferred the 12K of the 15K CL on the Chase/Wamu card to my Chase Freedom. So now it has a 3K CL and the Chase Freedom has a 27K limit...which works well, since I use that card extensively each month. 

 

So, the general consensus is to keep the Citi and WaMu/Chase card? I could see keeping the Citi for a rainy day - eventhough I have the same exact rewards on another card. However, the WaMu card seems a waste now and I was able to keep the additional credit it initially provided. Thoughts?

 

Thanks all for the advice...

__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008

Re: The Chopping Block.

[ Edited ]

Pj1369 wrote:

I only have a balance on my BofA due to the low APR. I let my mom use it for BT. Once that BT is done that card is done. It was my low APR card for BTs and what have you...eventhough the last time I used it was years ago, outside of the recent BT for my mom.

 

Broadly, I'm not too worried about overall available credit. Right now, I'm around 95K in available credit, and again, all CCs are paid off monthly, except of the BofA - which I rejected the new terms to maintain the old APR on the BT balance. I'm also starting to infer my high use cards are afraid of giving me CLIs due to my extensive credit with some of the crappier cards (cards that have rewards I don't like)....

 

Hmmm...I do like that point that it cost them more to leave the cards open - haha :smileyhappy:. Maybe, I'll leave the Citi card open. As for the Chase/WaMu card...I'm not sure I want it. I have so many other cards. I just transferred the 12K of the 15K CL on the Chase/Wamu card to my Chase Freedom. So now it has a 3K CL and the Chase Freedom has a 27K limit...which works well, since I use that card extensively each month. 

 

So, the general consensus is to keep the Citi and WaMu/Chase card? I could see keeping the Citi for a rainy day - eventhough I have the same exact rewards on another card. However, the WaMu card seems a waste now and I was able to keep the additional credit it initially provided. Thoughts?

 

Thanks all for the advice...


If the credit isn't costing you anything you don't worry about it. If you don't want to use it you put it in your SD - period!

 

As for BofA it was either a BT balanace or a regular (purchase) balance. If it was a BT balance I doubt you had to decline the new terms to retain the old BT rate. Anyway, BofA is one of the few outfits that doesn't make you close your account in order to opt out.

 

Right now I wouldn't be closing any account with any issuer that was not costing me money. Diversity of credit is even more crucial in todays climate than it has been in the past. Think twice before closing any accounts!

Message Edited by jmbfl on 04-18-2009 12:56 PM
Established Contributor
Pj1369
Posts: 844
Registered: ‎09-23-2007
0

Re: The Chopping Block.

How long can I go without useing the Citi or Wamu/Chase card before its closed by each respective CCC, you think?
__________________________________________________
Time to clean house and get rid of CCs from bad CCCs. Opt'd Out and Paying off the Balance: BofA. Closed: Chase Freedom. Keeping: Amex Blue, Amex Costco Cash back, Citi Forward, USAA MC, USAA Amex, and PenFed Platinum Cash Back. Next up for review: Chase Sapphire...
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: The Chopping Block.

I'd use them at least once every 3 months.

HSBC/ Orchard bank cards (for those who have them) are much, much worse. You pretty much have to have activity every 4-6 weeks to avoid closure. The store cards, like Best Buy, seem more relaxed, although I need to go pick up some blank CD's or something, now that I think about it.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
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