topic Re: Wamu ratejack: what a bummer! in Credit Cards

Wamu ratejack: what a bummer!

score_building — Tue, 29 Jul 2008 14:12:53 GMT

i honestly can't be mad, (it just smarts!) because you wise ones in the know here warned against high util. and since i cancelled the card (w/ a balance-risky) i keep the 7 percent rate at least. sad part is they just doubled my cl a few months ago and a few weeks ago sent me a "valued customer" zero percent balance transfer offer, go figure. my deceased wamu platinum was on it's way to being a nice acct. too-boo hoo! lucky for me i'm somewhat diversified. i think it's the mixed signals that really throw me off sometimes. what can i say, i'm generally paying down balances litigiously but the wamu card had my best rate so it was one of the last to be targeted to zero out (still, i pay 5 and 6x's the minimum, sometimes twice a month on it)- well, they got to me first in any event. busted! they wanted to take me from 7 to 16 percent... couldn't be surprised really though since providian/wamu apparently perfected the ratejack. it's the first time i remember this (a ratejack) happening to me and i have to say my heart sank when i read the enclosure. a ccc is still one of the only businesses that can legally change the price of a purchase after you buy it so i hope those bills wrending their way through congress put an end to some of this outrage.

Well, i figured that as their concellation prize i would close my checking acct. with them this week and open a totally free checking at my credit union instead under the idea that it is a safer place to do my banking anyway. I wanted to ask ya'll if that action could have any negative fico consequences b4 i take my business elsewhere. i just feel like if i'm too risky for them to play nice -looking at their current financial position i could come to the same conclusion and head for the hills

Message Edited by score_building on 07-29-2008 07:12 AM

Re: Wamu ratejack: what a bummer!

Anonymous — Tue, 29 Jul 2008 14:15:36 GMT

Did they state a reason?

I though WAMU killed off UD?

Re: Wamu ratejack: what a bummer!

Anonymous — Tue, 29 Jul 2008 14:20:11 GMT

There shouldn't be any FICO consequences from closing your checking account and opening one at your CU, unless the CU pulls a hard to open the account.

Timothy - I thought they ratejacked him for util on his WAMU card.

Re: Wamu ratejack: what a bummer!

Anonymous — Tue, 29 Jul 2008 14:29:40 GMT

The UTL was implied - I wanted to see if they provided a written reason.

FretlessMayhem wrote:
There shouldn't be any FICO consequences from closing your checking account and opening one at your CU, unless the CU pulls a hard to open the account.

Timothy - I thought they ratejacked him for util on his WAMU card.

Re: Wamu ratejack: what a bummer!

score_building — Tue, 29 Jul 2008 14:34:12 GMT

they said i could write to ask, i couldn't be bothered. i have a relatively clean report w/ 650 ish scores and a mix of high util and zeroed out balances. i have two baddies -a 60 and 90 late that are 4.5 years old on my student loan so no doubt they found their reason in there somewhere, their loss really. Barring death, sickness, divorce, natural disaster etc. they were (and still are) going to get their money soon. i'm fairly certain that they jacked me for high util. but they didn't specify in the form letter.

Message Edited by score_building on 07-29-2008 07:33 AM

Message Edited by score_building on 07-29-2008 07:34 AM

Re: Wamu ratejack: what a bummer!

Anonymous — Tue, 29 Jul 2008 14:36:36 GMT

Well that means it was NOT for AA (Adverse action) as if it were the letter would automatically be required. So your UTL was likley the cause then.

Remember- the account even if "Closed" counts in UTL until the balance is zero.

score_building wrote:

they said i could write to ask, i couldn't be bothered. i have a relatively clean report w/ 650 ish scores and a mix of high util and zeroed out balances. i have two baddies -a 60 and 90 late that are 4.5 years old on my student loan so no doubt they found their reason in there somewhere, their loss really. Barring death, sickness, divorce, natural disaster etc. they were (and still are) going to get their money soon. i'm fairly certain that they jacked me for high util. (they found their reason) but they didn't specify in the form letter.

Message Edited by score_building on 07-29-2008 07:33 AM

Re: Wamu ratejack: what a bummer!

score_building — Tue, 29 Jul 2008 15:02:50 GMT

Good to know, thanks Timothy. Yes i need to pay it down to zero post haste. I don't want my other creditors getting antsy and AA me either.

Interesting to note, maybe because i had so little available credit left on the card perhaps -it hasn't changed my scores even one point so far.

Apparently my cu pulls a hard, why??? i can't afford another hard inquiry now, not by a long shot, dern it!

Message Edited by score_building on 07-29-2008 07:41 AM

Message Edited by score_building on 07-29-2008 08:02 AM

Re: Wamu ratejack: what a bummer!

Anonymous — Tue, 29 Jul 2008 15:11:29 GMT

Just to be clear-

You will get the Good and the bad of the utility on the closed account until the balance is zero-

So don't expect a score change until the balance is zero-

As this will show as Closed be customer- not a big deal even with a manual review.

Pay it way down (to like $200) then make small payments until you have CLI's on the other accounts to make up for the CL that will go away from scoring when the balance hits 0 .

Re: Wamu ratejack: what a bummer!

score_building — Tue, 29 Jul 2008 18:28:30 GMT

ah, ok - now i'm beginning to understand better, tx again for the v. helpful advice/ clarification... by the way i closed about 3 or 4 high apr (zero balance) store cards over this past year thinking i was 'cleaning house' to make room for the premiums i now have (b4 i knew it was damaging), and i hear we are punished more stridently for closed accounts when fico 08 hits (will it ever?)... do i need to go ahead a brace myself for that downward spiral as well?

Message Edited by score_building on 07-29-2008 11:28 AM

Re: Wamu ratejack: what a bummer!

jmbfl — Tue, 29 Jul 2008 19:02:48 GMT

I don't know how much you owe on the account you closed - but I will tell you that you got the minor league ratejack treatment. WaMu/Providian are vicious. They ratejacked both of the accounts I have with them. The one they ratejacked to 31% I BT'ed to 0% APR. The other account I closed to keep it at 24% and am working down the balance (currently $1,300). I have very good credit now and I assure you that WaMu/Providian will never make one more nickel off me once that balance is cleared. EVER!

Re: Wamu ratejack: what a bummer!

Anonymous — Wed, 30 Jul 2008 15:57:56 GMT

Wamu did this to me. They upped my APR from 9% to 19.9%. No letters, no phone calls or anything. I have never been late, or over limit. I wrote them for explaination and they just said "they change accounts based on customers needs "

I called 2 weeks later and the rep said there was no reason for it and did not understand. She said she would put a note that I would like my apr reduced. I am carrying about 35% balance on the card, but she said that would not be why.

Soooo, yeah, I am upset!

Re: Wamu ratejack: what a bummer!

Susyflower — Wed, 30 Jul 2008 19:16:26 GMT

I just got approved for a WaMu PetSmart Rewards Visa...first six months 0% APR then 12.79% after that. Those jerks better not ratejack me!!! I was so excited about the rewards part at PetSmart...should've done a little more research before I "bought" into WaMu. I will continue to pray silently that everything will be all right.

Re: Wamu ratejack: what a bummer!

Anonymous — Wed, 30 Jul 2008 19:43:11 GMT

*shudders* - It seems like I never hear very much good stuff about WaMu... except for maybe providing free PFICO

Re: Wamu ratejack: what a bummer!

Anonymous — Wed, 30 Jul 2008 19:56:39 GMT

Skidude514 wrote:
*shudders* - It seems like I never hear very much good stuff about WaMu... except for maybe providing free PFICO

They gave me a Real Rewards MC with a $15K CL when my largest reporting non-AU CL at the time was $2K. That's something good, right?

Re: Wamu ratejack: what a bummer!

Anonymous — Wed, 30 Jul 2008 20:00:53 GMT

Hey, awesome! I like to be proven wrong about statements like that :-)

Message Edited by Skidude514 on 07-30-2008 04:00 PM

Re: Wamu ratejack: what a bummer!

marty56 — Wed, 30 Jul 2008 20:11:21 GMT

I am going to 800 on the cheap (In terms of # of CCs) but this story is a good example of why it may pay to have lots of CCs vs only a few. If one of your CCCs RJ's you, you can BT to another.

Also a good example of why these days you should not carry large balances on CCs and how store cards may be the way to go for big ticket item purcases. When they have special finance rates of course.

Re: Wamu ratejack: what a bummer!

score_building — Thu, 31 Jul 2008 01:35:15 GMT

i've heard too many of these horror stories with this issuer. my story does seem rather G rated all things considered and i'm sorry to hear they turned on you even worse, in my book 31% is modern day loan sharking, but it also sounds like a default rate, did you you default? i did not, not even close. i have to say the 9 point apr increase they presented to me via rate jack did feel pretty major even though worse things have happened to people -usually who have 'defaulted' i believe. not to say that makes it cool or right since a pin could drop (or you could pay 1 hour late and be in 'default').

i can just see the offers coming in in a few months once i'm paid down and have moved my other business with them elsewhere. i'll have two for them words: **ck it.

Message Edited by score_building on 07-30-2008 06:35 PM

Re: Wamu ratejack: what a bummer!

score_building — Thu, 31 Jul 2008 01:34:23 GMT

wow cheddar! we loves that, what a tradeline boost that was! To be sure they are not all bad, just tricky sometimes. I had my lowest apr on record with them and i remain v. appreciative of that. nonetheless, i wish i had a 0 % offer that i could use now. cie la vie.

Re: Wamu ratejack: what a bummer!

score_building — Thu, 31 Jul 2008 01:40:21 GMT

i wonder how risky it is with your prime issuers for them to see high balances on a store card (since they won't know your riding a 0% offer or for how long)

Re: Wamu ratejack: what a bummer!

Anonymous — Thu, 31 Jul 2008 01:50:32 GMT

score_building wrote:

wow cheddar! we loves that, what a tradeline boost that was! To be sure they are not all bad, just tricky sometimes. I had my lowest apr on record with them and i remain v. appreciative of that. nonetheless, i wish i had a 0 % offer that i could use now. cie la vie.

Yes, it was. It was followed up shortly thereafter by $7500 from BofA and $11K from Citi. I'm sure those other lenders would not have been so generous if WaMu hadn't given me a huge boost.

In the interest of full disclosure, I've been doing my banking with WaMu for seven years, and they had been sending me about three to four preapprovals a week before I applied. I'm sure that my banking relationship with them helped my case quite a bit.