The Nuclear Option

[cakkd]

About seven or eight years ago, I was irrationally angry when I got hit with a $35 late charge on my Amazon Chase Visa for being a day tardy on payments. At that time, my credit score was around 805 and I had a perfect record with the company. I called irate, saying I wished to cancel the card. In return for not cancelling the card, forgave the late charge, lowered my IR from 20% to 5%, increased my CL to $8,100, and sent me a $25 Amazon gift card.

Fast forward three or four years. Universal default was still in effect. Because PayPal extended me credit that I never asked for in the amount of $26, and then sent it to collections, my IR blossomed from 5% to 29.99%. I called, angry again, and asked to cancel my card. There response was, okay, we will. (It turned out to be a really stupid decision on my part.)

My point is the Nuclear Option can go both ways. But, still, it seems a good way to get all that a CC company is willing to give you. If that turns out to be nothing or not a lot, you can always pull back at the last minute.

Has anyone else ever tried the Nuclear Option? What were your results? Are things any different now that credit isn’t as loose as it once was?

[Themanwhocan]

Nuclear war is an interesting game. The only way to win is, not to play.

[PlasticOrPlastic]

I like the name for this phenomenon.  I once called Cap1 because my CL wouldnt move from $500 dollars, I finally got mad (and most likely had something else bugging me that day) so I called in, put on my show and said I'd cancel the card...like you the CSR agreed and closed the account.  Unfortunatly for me I was still in the rebuilding process so that was my only card.  I called them back and they said the closure was final.  After working with the EO I finally got an increase to $1500 bucks and the account reopened.  I guess in my case it went both ways but had the EO not been understanding I'd be without a card at all. 

[j_casteel]

So you paid your payment late and then called them demanding retention or would close it?

Some creditors do have retention some do not. I never call and demand anything or have a sense of entitlement. It's business and they either want mine or they don't and if not I'll just take it else where.

[john398]

Are you sure you had a creditr card with PayPal? If so was that thru GE (paypal smart connect) to me it sounds like you overdrafted your paypal account and they sent it to collections

[cakkd]

Thanks for sharing, Endless. As I said, I think there is a way you can avoid mutually assured destruction at the last minute. They’ll give you a spiel like, “The cancellation is final. You will need to cut up the card…” Once they go into that, you can say, you’d like to reconsider and call them back.

Bartering in Asia is a heavy, involved process that most Westerners aren’t cut out for. I figured out a way to determine the lowest price a merchant will go. You express great interest in something you want to buy, ask the price, and say, “Way too expensive.” You look offended and slowly walk off. The merchant will then call out to you lower and lower prices until she or he gets to their bottom price. You can then return later and know how low you can get the item for.

The Nuclear Option seems to me the equivalent. They’ll throw out everything you are eligible for to keep your business. I’m planning on keeping my CUs below 10% for a few months and then call all the companies with the Nuclear Option.

[j_casteel]

Good luck...just follow thru if they don't give you what you want.

[cakkd]

Indeed, I overdrafted my Paypal account. There was absoultely nothing in the TOS that said they would extend me credit if the account was overdrafted. As well, I did have part of the amount in the account, and they left that there.

[cakkd]

I agree with following through. I wasnt to refi in a month. After that, a small ding on my credit report because of an account closure is no big deal. Plus, the rewards and credit is nice, but I ultimately don't need either.

I haven't had a HP on my credit for four years. I could always just get another CC.

[cakkd]

It's not about "entitlement," it's about maximizing the terms which they'll give you. If it's not worth it to them, they'll let you walk. They owe you nothing. You owe them nothing (beyond your current balance).