topic Re: The Chopping Block. in Credit Cards

The Chopping Block.

Anonymous — Sat, 18 Apr 2009 17:48:18 GMT

I know, I know. You should never close a CC. But, enough is enough. BofA has killed my APR (5.9F to 13.9V), WAMU/Chase stripped away my rewards and I already have a Chase Card I love (Freedom), and Citi refuses to give me a CLI, and I have an Amex Costco card to replace it with the same exact rewards.

So, I'm closing those three cards. However, I'll move the Chase/WAMU CL to my Chase Freedom. I don't need them and I don't want the head aches. I know mathmatically and FICO-wise I shouldn't. But, there's the principle of it all. They can't treat good customers like crap for no reason! I pay off all my CCs every month and I have superlative credit - so bye, bye!

Anyone else doing the same?

I just hope Amex doesn't turn south on me, lol . And, I still have my PenFed, USAA, and Chase Freedom - which all have been amazing thus far!! ::fingers crossed::

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 19:03:00 GMT

I definitely would NOT close my BofA account or my Citi card for the reasons you've given. And I especially wouldn't be counting on AMEX to be any better to you. Have you read the stories here about AMEX?

So what if Bof A ratejacked you? Just don't carry a balance on the card. And it's not just Citi Bank that isn't giving CLIs at this time, you didn't get CLD, did you?

You don't have to give these cards a lot of use...sock drawer them and use occassionally for a small purchase, then PIF. They'll continue to help you as far as average age of accounts and utilization on your credit reports.

Of course you need to do what makes sense to you, but I would caution you not to make these decisions when you're upset and feeling personally insulted. It's not personal...it's business.

Message Edited by VEEnVEGAS on 04-18-2009 12:03 PM

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 19:01:23 GMT

PJ -

There really is no principle. If you are not getting the CLI's and CL's you want with existing cards, shop elsewhere.....

Go with a credit union, such as Alliant or PenFed (or Navy Fed if you qualify). You will get further, faster and be treated with respect and friendly manner.

Don't cancel the cards.....even though you "feel like it." This is the problem in credit.....feelings should not apply...leave them at home when evaluating and making credit decisions. Just as you shouldn't impulse shop or app, you shouldn't impulse close or act.

The best thing you can do is the best thing you can do....so don't say you know better and yet do otherwise. Do what you know, because you reap what you sow.

And as for APR....I hope you aren't carrying balances. If not, then who cares on the APR? If you are, then look at a BT to Alliant (no fees whatsoever).

5.9% if great, but that rate is not common and not to be expected to last forever. BoA is going to go after its 'reliable sources of income' which means YOU. And income comes from interest and fees. So, if you don't like the price, shop around. If the card has no AF, then it isn't hurting you.

Re: The Chopping Block.

jmbfl — Sat, 18 Apr 2009 19:05:58 GMT

@Anonymous wrote:
I know, I know. You should never close a CC. But, enough is enough. BofA has killed my APR (5.9F to 13.9V), WAMU/Chase stripped away my rewards and I already have a Chase Card I love (Freedom), and Citi refuses to give me a CLI, and I have an Amex Costco card to replace it with the same exact rewards.

So, I'm closing those three cards. However, I'll move the Chase/WAMU CL to my Chase Freedom. I don't need them and I don't want the head aches. I know mathmatically and FICO-wise I shouldn't. But, there's the principle of it all. They can't treat good customers like crap for no reason! I pay off all my CCs every month and I have superlative credit - so bye, bye!

Anyone else doing the same?

I just hope Amex doesn't turn south on me, lol . And, I still have my PenFed, USAA, and Chase Freedom - which all have been amazing thus far!! ::fingers crossed::

You're kidding, right? The adage is measure twice, cut once. I reckon you need to rethink your plan. I would not be doing anything right now that immediately lowers my available credit or eventually will lower my AAoA. Just not a real sound plan. You do have a SD, don't you?

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 19:14:12 GMT

why do you have rewards cards when you're concerned about aprs? my card aprs average 16% because they're all rewards cards. i don't care about that though, because i never carry a balance. if i were worred about my aprs, i wouldn't keep a single rewards card in my wallet.

decide whether or not you're going to be a balance-carrier and fill your wallet with cards that will best suit your needs. take the rest and shove them in a sock drawer. if you're mad at bofa, the best way to hurt them is not using your card -- it's actually more costly for them to maintain an unused account than cancel an account.

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 19:22:40 GMT

I agree with Jaybird - reward cards are poor choices for carrying a balance....the APR's are always higher as are the fees usually.

If you want/need to carry a balance, go with the no perks, basic card which offers low fixed apr.

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 19:36:01 GMT

I only have a balance on my BofA due to the low APR. I let my mom use it for BT. Once that BT is done that card is done. It was my low APR card for BTs and what have you...eventhough the last time I used it was years ago, outside of the recent BT for my mom.

Broadly, I'm not too worried about overall available credit. Right now, I'm around 95K in available credit, and again, all CCs are paid off monthly, except of the BofA - which I rejected the new terms to maintain the old APR on the BT balance. I'm also starting to infer my high use cards are afraid of giving me CLIs due to my extensive credit with some of the crappier cards (cards that have rewards I don't like)....

Hmmm...I do like that point that it cost them more to leave the cards open - haha . Maybe, I'll leave the Citi card open. As for the Chase/WaMu card...I'm not sure I want it. I have so many other cards. I just transferred the 12K of the 15K CL on the Chase/Wamu card to my Chase Freedom. So now it has a 3K CL and the Chase Freedom has a 27K limit...which works well, since I use that card extensively each month.

So, the general consensus is to keep the Citi and WaMu/Chase card? I could see keeping the Citi for a rainy day - eventhough I have the same exact rewards on another card. However, the WaMu card seems a waste now and I was able to keep the additional credit it initially provided. Thoughts?

Thanks all for the advice...

Re: The Chopping Block.

jmbfl — Sat, 18 Apr 2009 19:56:03 GMT

@Anonymous wrote:
I only have a balance on my BofA due to the low APR. I let my mom use it for BT. Once that BT is done that card is done. It was my low APR card for BTs and what have you...eventhough the last time I used it was years ago, outside of the recent BT for my mom.

Broadly, I'm not too worried about overall available credit. Right now, I'm around 95K in available credit, and again, all CCs are paid off monthly, except of the BofA - which I rejected the new terms to maintain the old APR on the BT balance. I'm also starting to infer my high use cards are afraid of giving me CLIs due to my extensive credit with some of the crappier cards (cards that have rewards I don't like)....

Hmmm...I do like that point that it cost them more to leave the cards open - haha . Maybe, I'll leave the Citi card open. As for the Chase/WaMu card...I'm not sure I want it. I have so many other cards. I just transferred the 12K of the 15K CL on the Chase/Wamu card to my Chase Freedom. So now it has a 3K CL and the Chase Freedom has a 27K limit...which works well, since I use that card extensively each month.

So, the general consensus is to keep the Citi and WaMu/Chase card? I could see keeping the Citi for a rainy day - eventhough I have the same exact rewards on another card. However, the WaMu card seems a waste now and I was able to keep the additional credit it initially provided. Thoughts?

Thanks all for the advice...

If the credit isn't costing you anything you don't worry about it. If you don't want to use it you put it in your SD - period!

As for BofA it was either a BT balanace or a regular (purchase) balance. If it was a BT balance I doubt you had to decline the new terms to retain the old BT rate. Anyway, BofA is one of the few outfits that doesn't make you close your account in order to opt out.

Right now I wouldn't be closing any account with any issuer that was not costing me money. Diversity of credit is even more crucial in todays climate than it has been in the past. Think twice before closing any accounts!

Message Edited by jmbfl on 04-18-2009 12:56 PM

Re: The Chopping Block.

Anonymous — Sat, 18 Apr 2009 23:32:01 GMT

How long can I go without useing the Citi or Wamu/Chase card before its closed by each respective CCC, you think?

Re: The Chopping Block.

haulingthescoreup — Sat, 18 Apr 2009 23:50:45 GMT

I'd use them at least once every 3 months.

HSBC/ Orchard bank cards (for those who have them) are much, much worse. You pretty much have to have activity every 4-6 weeks to avoid closure. The store cards, like Best Buy, seem more relaxed, although I need to go pick up some blank CD's or something, now that I think about it.

Re: The Chopping Block.

Red1Blue — Sun, 19 Apr 2009 00:40:30 GMT

I would keep any card that does not have AF and decent CL ( Cl > $500). They are worth keeping, Any card that has AF is going to chopping block.

Re: The Chopping Block.

Anonymous — Sun, 19 Apr 2009 00:52:13 GMT

@Anonymous wrote:
I know, I know. You should never close a CC. But, enough is enough. BofA has killed my APR (5.9F to 13.9V), WAMU/Chase stripped away my rewards and I already have a Chase Card I love (Freedom), and Citi refuses to give me a CLI, and I have an Amex Costco card to replace it with the same exact rewards.

So, I'm closing those three cards. However, I'll move the Chase/WAMU CL to my Chase Freedom. I don't need them and I don't want the head aches. I know mathmatically and FICO-wise I shouldn't. But, there's the principle of it all. They can't treat good customers like crap for no reason! I pay off all my CCs every month and I have superlative credit - so bye, bye!

Anyone else doing the same?

I just hope Amex doesn't turn south on me, lol . And, I still have my PenFed, USAA, and Chase Freedom - which all have been amazing thus far!! ::fingers crossed::

I'm right there with you, If more people did the same they would change their tunes......like ......real quick because they would start see their balances shrink up. They gave me a haircut also......10k to 1k guess what.......card is now canceled. To hell with the FICO for now...It's about principle I'm proud of you for doing this...more people should do the same.

Re: The Chopping Block.

GregB — Sun, 19 Apr 2009 01:56:27 GMT

@Anonymous wrote:
why do you have rewards cards when you're concerned about aprs? my card aprs average 16% because they're all rewards cards. i don't care about that though, because i never carry a balance. if i were worred about my aprs, i wouldn't keep a single rewards card in my wallet.

I don't understand the "fact" that reward cards are higher interest. It does make sense that they would be BUT:

One BofA rewards cards is 7.99% and the other lowered from 9.24% to 8.49% last month. My Chase Starbucks reward card is 7.24%.

I think those are actually lower on average than my non-reward cards but I do use the rewards cards far more. This year I've receive checks on the first card for $75, the second for $250 and the Starbucks/Chase Card says it has rebated me $214 in Jan-March.

Re: The Chopping Block.

athensguy — Sun, 19 Apr 2009 18:03:36 GMT

Amex is the frontrunner in random AA and Penfed appears to be joining the AA game, so you'll probably get AA or closures on those cards if you get rid of your backups.

Message Edited by athensguy on 04-19-2009 02:03 PM

Re: The Chopping Block.

Anonymous — Sun, 19 Apr 2009 18:19:15 GMT

@GregB wrote:
@Anonymous wrote:
why do you have rewards cards when you're concerned about aprs? my card aprs average 16% because they're all rewards cards. i don't care about that though, because i never carry a balance. if i were worred about my aprs, i wouldn't keep a single rewards card in my wallet.

I don't understand the "fact" that reward cards are higher interest. It does make sense that they would be BUT:

One BofA rewards cards is 7.99% and the other lowered from 9.24% to 8.49% last month. My Chase Starbucks reward card is 7.24%.

I think those are actually lower on average than my non-reward cards but I do use the rewards cards far more. This year I've receive checks on the first card for $75, the second for $250 and the Starbucks/Chase Card says it has rebated me $214 in Jan-March.

Well any rewards cards with lower interest rates than the average non-rewards card are the exception rather than the rule. I feel like there are two reasons why rewards cards charge higher interest rates than non-rewards cards: 1) they earn less on interchange due to them having to pay more of it out in rewards, so they charge higher interest rates to make up the difference in lost revenue 2) people are more wiling to swallow a larger interest rate since they're getting rewards in return (though if you do the math, the interest you pay is usually substantially more than what you would ever earn in rewards)

either way, i think the best route is to never carry a balance, that way you can the card with the best benefits and rewards, even if it has an interest rate of 1,000%. i'd even go so far as to say that nobody should EVER carry a balance unless you're broke, right out of school, and need car repairs or a suit for a job interview -- other than that, everyone should live at or below their means. period.

Message Edited by jaybird201 on 04-19-2009 02:19 PM