topic Re: Chase Freedom: APR reduction vs. closing + reapp in Credit Cards

Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 14:27:46 GMT

Hello!

I've got my Freedom for 14 months. Started with a measly $500 and a monstrous 22.99% APR. The APR hasn't kicked in yet, couple of statements with 0% promo remaining.

Since then, my credit improved (by about 100 points), got the CSP and the Southwest Premier; got some CLIs here and there and did some shuffling. Now the Freedom is at $4700. When the 0% promo gets over, I'm thinking of doing either of two things:

(a) Shuffle some more credit limits, get Freedom to $5k, make it Visa Sig, ask for APR reduction

(b) Move over Freedom CL to CSP, close Freedom, re-app for Freedom next year (24 months since I got this one), get the bonus and hopefully a much better APR.

I've heard that APR reduction with Chase is next to impossible; at the same time I don't want to be branded a churner. I don't at all like this APR. I won't carry a balance on this card but "you-never-know".

What's the better of the two? Any other thoughts?

If I do close the Freedom, how long should I wait between closing and reapplying (apart from the 24 months since last app thing)?

Re: Chase Freedom: APR reduction vs. closing + reapp

C24Webb — Fri, 27 Mar 2015 14:41:06 GMT

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase. I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now. I've basically "sucked it up" and never expect a reduction. I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted. I applied last February and had 0% until this billing cycle. I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out). They gave me 0% for another year! So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it. A request can be made every six months. Basically, I think there are better options for you than closing and reapping. However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing. Good luck!

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 14:40:01 GMT

Getting an APR reduction from Chase is like pulling teeth. Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR? Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction? It won't make a difference.

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 14:56:11 GMT

I would keep the current line open, move all but $1000 to the CSP. Just use the freedom for the rotating categories. Doesn't CSP have 15.24%? If you ever need to carry a balance, you would use that one.

Re: Chase Freedom: APR reduction vs. closing + reapp

thelethargicage — Fri, 27 Mar 2015 14:57:26 GMT

Option B is the only one that works. FYI, I re-apped the day after I closed my original Freedom and still got the bonus.

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 15:05:11 GMT

I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.

Re: Chase Freedom: APR reduction vs. closing + reapp

lg8302ch — Fri, 27 Mar 2015 15:18:54 GMT

I have been there about a year ago and look at me now...my Freedom is 26 months old and I still have my lovely 22,99% APR . I also first gave it a thought to re-apply but then figued what kind of gamble this would be and I might end up again with 22,99% APR and further cut my AAoA. Simply not worth it IMO. In the meantime I got over it and now smile at this figure and will just never carry a balance on Freedom. Chase hopefully does not expect me to pay interest at these terms??

As for the PC to a Siggy it was also quite a hassle for me and only possible thru the EO. Reason was that with 22,99% APR it could not be a Signature card. Kind of a circle or me. So I decided to get some answers from the EO to what I could to to qualify for the Siggy in the future and that I would be ready to work on whatever Chase wants me to work on but I would need to know what that should be as I really was clueless. Again received a standard answer that Chase will review accounts periodically and make their adjustments with the APR and then I might be eligible. That answer was not good enough and I wanted an explanation to what could be improved to become eligible .. never got that answer but Chase sent me the Siggy instead. Mission accomplished. When all this happended my Fico EQ and EX were both over 800. Not good enough for Freedom Siggy but I got approved for Marriott and CSP both Signature cards with high limits. Why do I qualify for CSP with high limit and not for Freedom Siggy? Nobody managed to get me this answer... I know I was a stubborn customer on the way to my Freedom Signature.

Good luck on your mission and I truly hope it gets smoother for you

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:06:19 GMT

@C24Webb wrote:

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase. I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now. I've basically "sucked it up" and never expect a reduction. I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted. I applied last February and had 0% until this billing cycle. I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out). They gave me 0% for another year! So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it. A request can be made every six months. Basically, I think there are better options for you than closing and reapping. However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing. Good luck!

Thanks for sharing your info Webb.

That's a a great point about Discover. In fact I did the same thing a week ago; asked them for APR reduction, and chose the 0% for 12 months instead of a permanent 2% reduction. I didn't know about trying it every 6 months. I have the card for almost 2 years; I only tried for CLIs. I recently came across a thread on Discover and another on Barclay and tried both and succeeded, and also on the Citi. My Discover also has 10k (my personal highest) so I'll put my balance there itself.

APR reduction on Chase is more of a psychological thing rather than an economic thing. I know it's not rational but it keeps bothering me. My AAoA isn't great (just about 15 months; the oldest card is 2.5 years). I don't plan to app for other cards in the near future; I'd only love to get a better deal on my existing cards. Sign-up bonuses (if any) are an added plus.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:16:29 GMT

@Anonymous wrote:
Getting an APR reduction from Chase is like pulling teeth. Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR? Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction? It won't make a difference.

The only reason I think I shouldn't get the same APR is because I have a much better report now. Accounts are older, utilization is lower, got better cards, have overall higher CLs.

In fact I closed my Slate when it turned 5 months and started getting Chase pre-app offers on its website almost immediately afterwards. Guess what, the APR came down 5% (22.99-17.99). I know it's not the best but I believe the two cards belong to the same pricing category; so an improvement for Slate APR may mean an improvement for Freedom as well? Also I managed the CSP and the Southwest and they're all < 16%.

And by the time 24 months elapse, my scores may go up another 20-30 points (inquiries dropping off, AAoA increasing etc.) so even better rates?

Is it a must-have card for me? Well it forms my trifecta (got checking and CSP) so fits very well. However my spouse also got the Freedom (much better offer and CL) and Chase allows transfer of MR points so I might just make use of hers.

So why I want it? As I explained in my other reply, it's more emotional than economic. One, I believe I deserve better (got from other lenders, why not Chase) and two, just because.

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 17:21:18 GMT

@Ghoshida wrote:
@Anonymous wrote:
Getting an APR reduction from Chase is like pulling teeth. Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR? Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction? It won't make a difference.
The only reason I think I shouldn't get the same APR is because I have a much better report now. Accounts are older, utilization is lower, got better cards, have overall higher CLs.

In fact I closed my Slate when it turned 5 months and started getting Chase pre-app offers on its website almost immediately afterwards. Guess what, the APR came down 5% (22.99-17.99). I know it's not the best but I believe the two cards belong to the same pricing category; so an improvement for Slate APR may mean an improvement for Freedom as well? Also I managed the CSP and the Southwest and they're all < 16%.

And by the time 24 months elapse, my scores may go up another 20-30 points (inquiries dropping off, AAoA increasing etc.) so even better rates?

Is it a must-have card for me? Well it forms my trifecta (got checking and CSP) so fits very well. However my spouse also got the Freedom (much better offer and CL) and Chase allows transfer of MR points so I might just make use of hers.

So why I want it? As I explained in my other reply, it's more emotional than economic. One, I believe I deserve better (got from other lenders, why not Chase) and two, just because.

Best chance if is you get a CSP and PC to Freedom.

Otherwise just keep checking preapprovals for better offer.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:26:46 GMT

@MstrPTato wrote:
I would keep the current line open, move all but $1000 to the CSP. Just use the freedom for the rotating categories. Doesn't CSP have 15.24%? If you ever need to carry a balance, you would use that one.

That would work in general; but under my current financial situation, I carry a balance to next month. Not interest-bearing, but I pay off after the statement is generated. Because of Freedom's good categories, I'd use $400 p.m on average and let it report. So right now, reducing the CL might make my utilization look horrible.

I'm just starting to build some savings; so I prefer stashing whatever extra money I get into that. So for maybe a year or so I wouldn't be able to follow the 1%, 1 card reporting rule that people here preach. My overall utilization is still less than 10% but most of it sits on CSP, Sallie Mae, Freedom, and QS. And from this month, Discover

Between Freedom and CSP (if they had same APR), carrying balance might make sense on Freedom more; because of the 5% rewards, even after paying 2-3% interest (if I ever carried for say 3 months) I'll still be positive. On CSP, not so much.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:28:16 GMT

@thelethargicage wrote:
Option B is the only one that works. FYI, I re-apped the day after I closed my original Freedom and still got the bonus.

Thanks for the Info Lethargic !

If you don't mind, how long did you have the previous Freedom, and how big of a jump (down) did you get in the APR? Also, how were your FICOs in the first and second rounds?

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 17:30:16 GMT

@Ghoshida wrote:
@MstrPTato wrote:
I would keep the current line open, move all but $1000 to the CSP. Just use the freedom for the rotating categories. Doesn't CSP have 15.24%? If you ever need to carry a balance, you would use that one.
That would work in general; but under my current financial situation, I carry a balance to next month. Not interest-bearing, but I pay off after the statement is generated. Because of Freedom's good categories, I'd use $400 p.m on average and let it report. So right now, reducing the CL might make my utilization look horrible.

I'm just starting to build some savings; so I prefer stashing whatever extra money I get into that. So for maybe a year or so I wouldn't be able to follow the 1%, 1 card reporting rule that people here preach. My overall utilization is still less than 10% but most of it sits on CSP, Sallie Mae, Freedom, and QS. And from this month, Discover

Between Freedom and CSP (if they had same APR), carrying balance might make sense on Freedom more; because of the 5% rewards, even after paying 2-3% interest (if I ever carried for say 3 months) I'll still be positive. On CSP, not so much.

If 18.99%, You'd be paying 4.7% on your purchases if carrying a full balance for 90 days and then paying off.

At 15.99% It comes down to 3.9%

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:31:03 GMT

@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.

There's an "if" there - especially with the FICO scores. Are you sure a PC from CSP to Freedom works? I thought it only downgrades to CS.

Also, a cold Freedom app might get you 13.99% in theory. Though, compared to your strategy, I don't know if a 2% drop in APR is worth losing AAoA and a HP.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:33:39 GMT

@Anonymous wrote:
If 18.99%, You'd be paying 4.7% on your purchases if carrying a full balance for 90 days and then paying off.

At 15.99% It comes down to 3.9%

Yeah; so if I could manage to get the Freedom to even the CSP's APR levels, I'll be net positive if I had to carry some balance, for some reason, ever.

CSP never works with balances, not unless you have very high cpp valuation. I don't get such valuation.

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 17:33:46 GMT

@Ghoshida wrote:
@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.
There's an "if" there - especially with the FICO scores. Are you sure a PC from CSP to Freedom works? I thought it only downgrades to CS.

Also, a cold Freedom app might get you 13.99% in theory. Though, compared to your strategy, I don't know if a 2% drop in APR is worth losing AAoA and a HP.

It's not. Especially if they're really going the AMEX way of only offering bonus once per lifetime on their non cobranded cards.

There have been several successful PC from CSP to Freedom. If I had to though i'd take the extra step down to CS and then Freedom.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:37:48 GMT

@lg8302ch wrote:
I have been there about a year ago and look at me now...my Freedom is 26 months old and I still have my lovely 22,99% APR . I also first gave it a thought to re-apply but then figued what kind of gamble this would be and I might end up again with 22,99% APR and further cut my AAoA. Simply not worth it IMO. In the meantime I got over it and now smile at this figure and will just never carry a balance on Freedom. Chase hopefully does not expect me to pay interest at these terms??
As for the PC to a Siggy it was also quite a hassle for me and only possible thru the EO. Reason was that with 22,99% APR it could not be a Signature card. Kind of a circle or me. So I decided to get some answers from the EO to what I could to to qualify for the Siggy in the future and that I would be ready to work on whatever Chase wants me to work on but I would need to know what that should be as I really was clueless. Again received a standard answer that Chase will review accounts periodically and make their adjustments with the APR and then I might be eligible. That answer was not good enough and I wanted an explanation to what could be improved to become eligible .. never got that answer but Chase sent me the Siggy instead. Mission accomplished. When all this happended my Fico EQ and EX were both over 800. Not good enough for Freedom Siggy but I got approved for Marriott and CSP both Signature cards with high limits. Why do I qualify for CSP with high limit and not for Freedom Siggy? Nobody managed to get me this answer... I know I was a stubborn customer on the way to my Freedom Signature.

Good luck on your mission and I truly hope it gets smoother for you

Thanks for all the info Liliane.

As you can see from my other posts, I'm somewhat in a similar position. I want lower APRs and the Signature status more for emotional reasons than purely financial. Under current scenario, if I need to carry a balance on Freedom, I'll most probably use some BT checks from Discover or my CU.

But it feels like I qualify, and Chase is holding me back because well, a year ago, I wasn't good enough.

I do feel like I need that stubbornness. And the EO contact

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 17:42:15 GMT

@Anonymous wrote:
@Ghoshida wrote:
@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.
There's an "if" there - especially with the FICO scores. Are you sure a PC from CSP to Freedom works? I thought it only downgrades to CS.

Also, a cold Freedom app might get you 13.99% in theory. Though, compared to your strategy, I don't know if a 2% drop in APR is worth losing AAoA and a HP.
It's not. Especially if they're really going the AMEX way of only offering bonus once per lifetime on their non cobranded cards.

There have been several successful PC from CSP to Freedom. If I had to though i'd take the extra step down to CS and then Freedom.

So far their app webpage still says 24 months.

And if they do go the AMEX way then well, there's always the Incognito

However, I do like your strategy.

But it also means that the spouse needs to get the CSP as well. The AUs will be switched ! I really like the CSP and there's a good amount of use as well.

Re: Chase Freedom: APR reduction vs. closing + reapp

Anonymous — Fri, 27 Mar 2015 17:46:20 GMT

@Ghoshida wrote:
@Anonymous wrote:
@Ghoshida wrote:
@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.
There's an "if" there - especially with the FICO scores. Are you sure a PC from CSP to Freedom works? I thought it only downgrades to CS.

Also, a cold Freedom app might get you 13.99% in theory. Though, compared to your strategy, I don't know if a 2% drop in APR is worth losing AAoA and a HP.
It's not. Especially if they're really going the AMEX way of only offering bonus once per lifetime on their non cobranded cards.

There have been several successful PC from CSP to Freedom. If I had to though i'd take the extra step down to CS and then Freedom.
So far their app webpage still says 24 months.
And if they do go the AMEX way then well, there's always the Incognito

However, I do like your strategy.
But it also means that the spouse needs to get the CSP as well. The AUs will be switched ! I really like the CSP and there's a good amount of use as well.

We may or may not be keeping one of our CSP's open (Wife and I have one each) I know for sure mine is getting PC.

Re: Chase Freedom: APR reduction vs. closing + reapp

Ghoshida — Fri, 27 Mar 2015 18:05:47 GMT

@Anonymous wrote:

We may or may not be keeping one of our CSP's open (Wife and I have one each) I know for sure mine is getting PC.

I'm the only CC-enthusiast in the house. Getting the SO's old BoA PC to BBR and Citi Diamond to DC took me a good while. Apparently, all this takes my focus away from real work (won't say it's totally untrue )

Thanks for the tips. Will first start Liliane's way and then see how it goes; if nothing, you might have a follower !