topic Re: Chase Ratejack, CLD, or other AAs in Credit Cards

Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 03:13:46 GMT

I recently logged into my Chase account and discovered that on my Chase Toys R Us card with a $20K CL (which I opened last Christmas-time for the 10% off) they were offering 3.99% on balance transfers until the balance is paid off. I decided this would be a good way to "refinance" my Chase auto loan, which is at 9.24% with a $11.5K balance.

Since no bank will let you transfer a balance from another account you have with them, I first transferred $11.5K to a Citibank card with a $0 balance, and then requested a credit balance refund. I deposited the check last Friday, and it should clear probably tomorrow.

However, after reading threads here and on other sites of ratejacking, CLDs, and other adverse actions taken by CCCs, I am a bit scared of what might happen. Since I haven't paid off the car yet, I have the option of continuing as I have, paying the auto loan as normal, and paying the credit card from the transferred/deposited funds.

My question is how long should I wait before deciding that Chase won't do anything evil to me? The first statement with the balance on it just cut (on Oct 22). I'd probably want to wait at least another billing cycle, but should I wait for 2, or 3, or more?

Obviously, no one can really know when something bad might happen, but when something bad has happened to others, how quickly does it usually occur?

Chase charged me the max transfer fee which was capped at $75. However, they put it into the category that has an APR of 11.49%. The last time I transferred a balance and was charged this fee, I complained that I didn't feel it was right to be charged "fees on fees" and asked where in the card agreement this was stated, and they allocated some of my payment directly to the fee, paying it off completely. Could complaining to them about this again trigger an AA? Thanks!

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 03:21:40 GMT

Ratejack will only effect new purchases, not your fixed bt offer as long as you don't miss a payment.

if this is really your only debt I wouldnt worry about it, it won't take you long to get it under 50% and probably would not even be noticed by chase.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 03:37:07 GMT

It's my only real debt with Chase. I plan to pay $240/mo, same as I was paying on the loan (the amount due was only $235, and the 2% minimum payment on the $11.5 K would only be $230).

My other two cards I PIF every month, and lately have started to pay the current balance the day the statement closes so they report a very low balance to the CRBs (whatever ends up clearing that day). I then pay the current balance the day before the due date as well.

I also have a WaMu card with $400/$1500 at 0% until Jan 2010, which will be paid off in 2 months but then charged up to $700, then paid off again in 4 months (car insurance), and a Citi card with $7000/$12.8K (wedding debt, transferred from one Chase card to another through a different Citi card, and then to Citi) which is at 0% until April 1, at which time I will PIF. In addition to the Chase auto loan ($11.5K/15.5K) I also have a Cap1 auto loan (at $9K/$12K).

Will asking Chase to drop the APR for the BT fee again set off any flags?

Message Edited by Mike14 on 10-27-2008 08:37 PM

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 03:35:35 GMT

I guess I don't understand your question about interest rate for bt fee. that would only be 1 month? the fee should be included in your whole bt.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 03:45:15 GMT

@Creditaddict wrote:
I guess I don't understand your question about interest rate for bt fee. that would only be 1 month? the fee should be included in your whole bt.

According to the Finance Charges section of the statement, it looks like the $75 BT fee will be charged interest at 11.49% APR (or about 1%, or 75 cents a month). My question is that since I already asked about this before, if I say "where does it say there will be a fee on the fee? I didn't know that would happen" they might say "yes you did, you asked us before. Let's take a Good Look at your account now" and then do Something Bad to me.

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 03:51:15 GMT

hmmm. i have not seen this before. when i do bt on my usbank it shows the interest charges for that month at like 40% to = that bt fee, but then next month it's all at the bt rate.

wonder if this is a chase thing?

your barely over 50% i wouldn't worry about calling them, just don't ask for cli!

did that once with chase after paying a card off and they said omg you have other debt, cl now 1k!! in my defense i told the credit person debt was less than half what it was when i got the card to begin with, they simply said now we have different standards.

but this was all done by credit, if i had not asked them for increase and they pulled credit i think the account would have been fine, so i woulnd't get scared about calling them.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:07:49 GMT

@Creditaddict wrote:
hmmm. i have not seen this before. when i do bt on my usbank it shows the interest charges for that month at like 40% to = that bt fee, but then next month it's all at the bt rate.
wonder if this is a chase thing?
your barely over 50% i wouldn't worry about calling them, just don't ask for cli!
did that once with chase after paying a card off and they said omg you have other debt, cl now 1k!! in my defense i told the credit person debt was less than half what it was when i got the card to begin with, they simply said now we have different standards.

but this was all done by credit, if i had not asked them for increase and they pulled credit i think the account would have been fine, so i woulnd't get scared about calling them.

I never call (unless I need an answer quick), I use the secure email link on the website.

I don't know if it's a "Chase thing" but I know it's not a Citicard thing" or "BofA thing" because both told me that the BT fee is at the same APR as the BT.

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 04:21:14 GMT

wow that's ghetto Chase!

the good news is it will only cost you a little over $1, but still annoying... it should be IN with the bt balance.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:24:33 GMT

Actually, it would cost a bit less than 75 cents a month. At the 50 months I plan to take to pay it off, that's an additional $37.50! Remember, "payments are applied to balances with lower or promotional APRs before higher APRs," so it won't be paid till last. I'll email them tomorrow.

Message Edited by Mike14 on 10-27-2008 09:24 PM

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 04:26:43 GMT

YUP, that's why I say that's ghetto on Chase' part... penny pincher's.

I might try to fight it like you have in the past, just on principle

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:36:51 GMT

I just wish I still had the email I sent them last time so I could phrase this one similarly. Here's the email:

To: Credit Card Support
Subject: APR/Balance Transfer

I recently completed a balance transfer, and it appears that I will be charged an APR of 11.49% on the $75 balance transfer fee. Can you please let me know where in my card agreement this is mentioned? I didn't see it anywhere. Moreover, it doesn't seem right to charge fees on fees. Could you please apply part of my first payment directly to the $75 transfer fee? Thank you!

Pleases and Thank Yous are never wrong!

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 04:39:06 GMT

sounds good. keep us posted how that works out!

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:43:22 GMT

Back to the original question, am I being paranoid that Chase will take adverse action and waiting a few cycles, or should I just go ahead and pay off the auto loan when the check clears?

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 04:47:42 GMT

well like I said, they could rate jack your purchase apr or cld to just above balance but they can't touch that fixed bt offer unless your late.

just look at it this way, if something bad happened, you could always go to your local credit union and just finance your car again and pay the credit card off.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:50:29 GMT

How do I refinance a paid off loan?

Chase replied already, but as what often happens with email, their response doesn't answer the question:

Hello, good evening.

We're pleased to confirm that your balance transfer of
$11,500.00 is subject to the fixed promotional Annual
Percentage Rate (APR) of 3.99% until the promotional
balance is paid in full.

You may verify this information under the Finance Charge
section of your monthly billing statement.

To access your statement online, please follow the
directions below:

1. Select the credit card account you want to manage from
the My Accounts page.
2. Click "See Statement" on the right-hand navigation bar.
3. Click "View" next to the statement you would like to
view.
4. To print a statement you can choose to: click the
printer icon, select the Print option from the File menu
or simultaneously depress the ?CONTROL? and ?P? keys on

your keyboard.

Re: Chase Ratejack, CLD, or other AAs

Creditaddict — Tue, 28 Oct 2008 04:52:55 GMT

haha, and you say you like email better!

you would just open a new car loan and pay the credit card off with the new loan.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 04:55:36 GMT

Doesn't a car loan need to be used to purchase a car, and then the lender holds the title? I'm not sure how I can use a car loan to pay a credit card. Would I need to retitle the car to the new lender? I would think a lender would make me get a personal loan.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 06:22:02 GMT

@Anonymous wrote:
I just wish I still had the email I sent them last time so I could phrase this one similarly. Here's the email:

To: Credit Card Support
Subject: APR/Balance Transfer

I recently completed a balance transfer, and it appears that I will be charged an APR of 11.49% on the $75 balance transfer fee. Can you please let me know where in my card agreement this is mentioned? I didn't see it anywhere. Moreover, it doesn't seem right to charge fees on fees. Could you please apply part of my first payment directly to the $75 transfer fee? Thank you!

Pleases and Thank Yous are never wrong!

Mike--

If you look at your statement, under "Transaction Fee," it states $75.00. When you look to the left of this at the "Finance Charge Due to Periodic Rate" you'll notice that this charge is $0.00. You can see that they are not charging you an 11.49% APR on this balance transfer fee. If you look toward the right on the very same line it also says $75.00 under "FINANCE CHARGES." This is just the way in which Chase posts their balance transfer fees. It will not appear on your next statement.

Message Edited by psychic on 10-27-2008 11:22 PM

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 14:26:54 GMT

@Anonymous wrote:
Back to the original question, am I being paranoid that Chase will take adverse action and waiting a few cycles, or should I just go ahead and pay off the auto loan when the check clears?

While Chase may not AA you for the BT, your other lenders might use the high util to UD you. I especially wouldn't do it if you have an Amex card you'd like to keep.

Re: Chase Ratejack, CLD, or other AAs

Anonymous — Tue, 28 Oct 2008 17:18:48 GMT

@Anonymous wrote:
...
While Chase may not AA you for the BT, your other lenders might use the high util to UD you. I especially wouldn't do it if you have an Amex card you'd like to keep.

What does UD stand for? I'm not familiar with that one. The only AMEX I have is from work, which will only report if I don't pay!

psychic: It's not that I don't believe you when you say it won't be on the next statement, because that's what ended up happening last time and my email may have been inconsequential, but... we'll see...