topic Re: Am I immune to RJ'ing? in Credit Cards

Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:28:09 GMT

Chase just lowered my Disney Visa rate to 5.24%, and last week my CU lowered my rate to 6.9%.

Any idea why they are doing this? The CU card just turned 16, maybe that's why. And maybe Chase likes that I carry a 3k balance?

I feel really lucky. I am sorry to those being RJ'd.

Re: Am I immune to RJ'ing?

jmbfl — Fri, 19 Dec 2008 20:40:28 GMT

I don't think anyone is immune. CCC's are just fickle, that's all.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:42:47 GMT

If they are variable rate cards (my Chase card is) then it's possible the recent Fed rate cuts are causing your APRs to be lowered incidentally. Normally it's something like Prime + X.XX%. So if Prime drops, your APRs do also.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:44:17 GMT

This is because of your fantastic FICO scores. If you ever are late on one payment you will see how fast they will reverse your low interest rates.

That is what happened to me back in 2004. I forgot to pay one credit card on time and now my scores are much lower because of it. Although it was over 4 years ago I still have one late charge that I paid and I never had a rebound to my high 780 scores.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:49:48 GMT

Ouch, about 6 months ago I was 1 day late on my Chase card. They just said don't do it again for another 6 months.

I was not charged a late fee or anything.

@Anonymous wrote:
This is because of your fantastic FICO scores. If you ever are late on one payment you will see how fast they will reverse your low interest rates.

That is what happened to me back in 2004. I forgot to pay one credit card on time and now my scores are much lower because of it. Although it was over 4 years ago I still have one late charge that I paid and I never had a rebound to my high 780 scores.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:51:57 GMT

@Anonymous wrote:
Ouch, about 6 months ago I was 1 day late on my Chase card. They just said don't do it again for another 6 months.

Normally you won't get a ding on your CRs until you are 30 days late on a CC payment. Most CCCs won't report you before then, however, they very well can keep track of it internally.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:54:22 GMT

@Anonymous wrote:
This is because of your fantastic FICO scores. If you ever are late on one payment you will see how fast they will reverse your low interest rates.

That is what happened to me back in 2004. I forgot to pay one credit card on time and now my scores are much lower because of it. Although it was over 4 years ago I still have one late charge that I paid and I never had a rebound to my high 780 scores.

Thats just plain wrong. I thought over time, it counted less against your score to have a late payment/BK/CA/ etc...

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:56:15 GMT

@Anonymous wrote:
Thats just plain wrong. I thought over time, it counted less against your score to have a late payment/BK/CA/ etc...

They usually start to ding less on anniversaries.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:57:26 GMT

You are correct, however, back in those days I did not review my accounts online. I didnt know that I forgot to make a payment until the next statement arrived. At that point it hit my credit report as a 30 day late.

It is now 4.5 years since but I am still taking a hit for it. I wrote to HSBC several times but they refuse to remove it.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 20:59:57 GMT

@Anonymous wrote:
I wrote to HSBC several times but they refuse to remove it.

Keep writing! I know at least one forum member has had GW luck with HSBC.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 21:04:20 GMT

@Anonymous wrote:
@Anonymous wrote:
Thats just plain wrong. I thought over time, it counted less against your score to have a late payment/BK/CA/ etc...
They usually start to ding less on anniversaries.

Yes but after 4.5 years you'd think FICO would forgive him since the past 4.5 have been good? I mean a BK falls off in time, why not a late payment?

Re: Am I immune to RJ'ing?

jmbfl — Fri, 19 Dec 2008 21:07:09 GMT

@Anonymous wrote:
You are correct, however, back in those days I did not review my accounts online. I didnt know that I forgot to make a payment until the next statement arrived. At that point it hit my credit report as a 30 day late.

It is now 4.5 years since but I am still taking a hit for it. I wrote to HSBC several times but they refuse to remove it.

One 4.5 year old 30-day late is not keeping your score from rebounding. There is something else going on. It may be the many CC's you have app'ed for keeping you from moving to higher scoring buckets.

Re: Am I immune to RJ'ing?

jmbfl — Fri, 19 Dec 2008 21:11:49 GMT

@Anonymous wrote:
@Anonymous wrote:
I wrote to HSBC several times but they refuse to remove it.
Keep writing! I know at least one forum member has had GW luck with HSBC.

I can't even get them to send me their promised explanation of my recent RJ'ing so I can rebut it. They march to the beat of their own drummer at all times.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 21:12:43 GMT

There is nothing BAD there other then that one 30 day late from 2004. I know that the 740's are ok but I never rebounded to my old 778.

I did take out a new mortgage this year and 3 new credit cards. However, after the mortgage my scores INCREASED by 15 points, and the new credit cards did not bring my scores down at all.

I have 3 to 4 new inq this year on each of my reports, and a total of 5 to 6 inq for the last two years.

I have a total of 31 credit cards but owe out under 1% of the credit lines.

Re: Am I immune to RJ'ing?

marty56 — Sat, 20 Dec 2008 12:03:42 GMT

Here is how I protect myself from RJ .

1. PIF

2. Major purchase (w DW approval that is) 0% or no payment for some time enough to PIF with no interest.

3. If I need to revolve a balance for an emergency, I would contact the CC first, let them know what I was going to do and how long I would take to PIF. May not help but it sure wont hurt,

Message Edited by marty56 on 12-20-2008 04:03 AM

Re: Am I immune to RJ'ing?

wmarat — Fri, 19 Dec 2008 21:37:56 GMT

I am immune to RJ'ing. I always PIF, so APR is meaningless, at the same time Citi reduced my APR to 6.74%, BOA to 9.99%.

I've come to think that you get things from financial institutions that/when you do not need them. APR reduction for PIFers, CLI when you have plenty of it and so forth.

@Anonymous wrote:
Chase just lowered my Disney Visa rate to 5.24%, and last week my CU lowered my rate to 6.9%.

Any idea why they are doing this? The CU card just turned 16, maybe that's why. And maybe Chase likes that I carry a 3k balance?

I feel really lucky. I am sorry to those being RJ'd.

Re: Am I immune to RJ'ing?

Anonymous — Fri, 19 Dec 2008 21:54:09 GMT

@marty56 wrote:
Here is how I RJ myself.

1. PIF
2. Major purchase (w DW approval that is) 0% or no payment for some time enough to PIF with no interest.
3. If I need to revolve a balance for an emergency, I would contact the CC first, let them know what I was going to do and how long I would take to PIF. May not help but it sure wont hurt,

Heh, I think I have passed $3.5k through my chase card in last month. I have also made $3.2k in payments.

But, on average, I do carry a $3000 balance with Chase, I PIF the CU card, and carry $3700 on my BofA. The BofA is at 0% for a while.

I can't wait till' this time next year, the Chase will be PIF and the BofA down to 1800. I will never get in this mess again!

Re: Am I immune to RJ'ing?

jmbfl — Fri, 19 Dec 2008 22:34:44 GMT

@Anonymous wrote:
There is nothing BAD there other then that one 30 day late from 2004. I know that the 740's are ok but I never rebounded to my old 778.

I did take out a new mortgage this year and 3 new credit cards. However, after the mortgage my scores INCREASED by 15 points, and the new credit cards did not bring my scores down at all.

I have 3 to 4 new inq this year on each of my reports, and a total of 5 to 6 inq for the last two years.

I have a total of 31 credit cards but owe out under 1% of the credit lines.

You don't need to have a baddie reporting to prevent your credit score from rebounding to its previous level. Other credit related activities you have engaged in, such as applications for new credit (INQ's), approvals for new credit, and the 30-day late itself (even though a 30-day late is not itself a baddie) may be effecting the scoring bucket you are in. Being in one scoring bucket vs. another may effect the maximum score you can attain. Scoring buckets are a black box and their exact workings are not public information. The only things we know for sure is that they exist and how many there are.

Yes, it is possible that getting the new mortgage could improve your FICO scores. This is particularly true if it adds a mortgage to your mix of credit. Adding a new type of credit (revolving/installment/mortgage) will improve your diversity of credit and FICO scoring algorithms do grant points for that. It is, unfortunately, also possible that certain credit grantors (read: AMEX, but others as well) may take a dim view of your new mortgage. If it is held by the wrong company or you live in the wrong part of the country they can hold it against you and use it as the basis for AA even if your scores did increase as a result.

You will get back to the scoring level you were once at with patience and perseverance. 740+ is not a bad waystation while in route!

Re: Am I immune to RJ'ing?

Anonymous — Sat, 20 Dec 2008 03:25:02 GMT

Thank you for your advice and information. I know having 31 credit cards may be hurting me as well.

I have a Chase Visa opened in 11/1977 which is my oldest account. Yes, 31 years old. The credit line originally was $6000 today it is $35,000 and I owe $100 and PIF every month.

You would think that that alone I should have a higher score.

I listened to the Suze Orman show and she states NOT to close any old accounts or even new ones.

I have not been subject to any CLD's or closures of any of my accounts with any bank.

Chase gave me my first credit card when I started college, 31 years ago, hmmmm, YIKES.