topic Re: Requested reduced APR...CCC said APR is increasing in Credit Cards

Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 01:31:02 GMT

I signed up for Suze Ormon's FICO kit this AM...I requested an updated credit report from all 3 bureaus...scores as of this AM were TU = 712, EQ = 692 and EX = 704...per Suze Ormon's kit, the avg APR I should be eligible for is approx 12%...naturally I called the CCC with the highest APR (currently 28%) and requested they consider reducing my current APR based on my scores...I was blind-sided when the customer service rep informed me I was not eligible for a reduced rate and, in fact, would be receiving notification within the next 7-10 days informing me that my APR was increasing in Feb '08...the CCC rep stated the increased APR was a result of a credit alert the CCC had received from Exp stating I was a "high credit" risk...the CCC I contacted was Chase...I've had the account with them since 1999...I've never been late on any payment to them...anyone have any thoughts / suggestions on how to address this issue...I would hate to close the account on principal alone because, ultimately, my credit score would suffer as a result, but the response I received just doesn't add-up.

Would a CRA contact my CCC to inform them I was a "high credit" risk...is this typical...there haven't been any material changes with respect to my current credit situation...if anything, there has been a slight improvement over the last 6 month period regarding my overall UTI...I appreciate any comments / suggestions you may have...thanks.

Message Edited by BeatingtheSystem on 12-04-2007 05:31 PM

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:26:42 GMT

Whats been going on with your reports lately? Whats you utilization like? Do you have a balance on this card? If so can you BT it somewhere else. Why in the heck is your interest rate 28% to begin with? If you can BT, put the card in the shredder and order another when they decrease your APR.

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:37:48 GMT

Ouch, Brams. What's goin' on with your scores?

Sorry: off-topic.

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:41:24 GMT

TheCynicalOne wrote:

Ouch, Brams. What's goin' on with your scores?

Sorry: off-topic.

Brammy got hit with a Discover approval that one card too many. But Brammy will take the hit. Oh and forgot to add let too many cards report with a balance D%$%#mend Microsoft Money Should correct itself this month...lol!!

Message Edited by Brammy on 12-04-2007 08:41 PM

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 01:50:11 GMT

Just started tracking my FICO scores on 10/7/07

TU scores:

11/3 = 716

11/10 = 716

12/4 = 712

EQ scores:

10/7 = 664

11/3 = 673

11/10 = 662

12/4 = 692

EX scores:

11/3 = 728

11/10 = 729

12/4 = 704

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:51:39 GMT

How much of your avail credit are you using? It is possible to have high score ith high uti. that would mean that your scores would be higher still without it. have you appd a lot lately? Why did they rate jack you to 28% in the first place?

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:53:30 GMT

Dang, Fico is harsh. It's like an evil ex-girlfriend...one mistake and she'll hurt your credit even after you break it off and everything's closed.

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 01:57:19 GMT

I'm not sure when the APR increased to 28%...really never payed close attention to it...I just made payments as required, which were usually well beyond req min pmt...I have been trying to paste info that is more comprehensive relative to my current credit situation, but I'm having trouble w/ my internet connection...I'm going to restart my computer and sign-on again to see if it helps...if so, I'll paste a comprehensive recap of my current credit situation...be back shortly.

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 01:58:30 GMT

BeatingtheSystem wrote:

I'm not sure when the APR increased to 28%...really never payed close attention to it...I just made payments as required, which were usually well beyond req min pmt...I have been trying to paste info that is more comprehensive relative to my current credit situation, but I'm having trouble w/ my internet connection...I'm going to restart my computer and sign-on again to see if it helps...if so, I'll paste a comprehensive recap of my current credit situation...be back shortly.

I can believe that. My mom didn't know her interest rate had been jacked to something like 18% since she is a 'deadbeat' so to speak. PIFs every month.

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 02:00:20 GMT

This is from TU CR: Understanding Your FICO® Score

712

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

Please note that a negative factor can be provided even if you are better than the national average on that factor. This means that there is still some room to work on this factor.

You've made heavy use of your available revolving credit.
Ratio of your revolving balances to your credit limits
35%For FICO High Achievers [?], this ratio is 7%, on average.
Your FICO score evaluates your total revolving credit [?] balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.
Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.
You have multiple accounts showing missed payments or derogatory descriptions.
Number of your accounts with a missed payment or a derogatory description
2 accountsAbout 93% of FICO High Achievers [?] have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.
Your FICO score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions [?].
What to do about this: If the late payments on your credit report are valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history and these late payments will have less of a negative impact on your score as time passes.
You have too many credit accounts with balances.
Number of your accounts carrying a balance
7 accountsFICO High Achievers [?] have an average of 3 credit accounts carrying a balance.
Your FICO score considers the number of accounts you have with balances. For credit cards, even if you pay them off in full each month, your credit report may still show a balance on those cards. The total balance on your last statement is generally the amount that is shown on your credit report.
What to do about this: You should consider reducing the number of your accounts that carry a balance and keeping your balances low.

What’s helping your FICO® score

The positive factors listed here reflect areas of your credit behavior that are helping your FICO® score. You should continue the good practices listed here. These factors are listed in order of their impact to your score – the first has the greatest positive impact and the last has the least.

There is no evidence of a serious delinquency (60 days past due or greater) or derogatory description on your credit report.
Number of your accounts that were ever 60 days late or worse:
0 accountsOnly about 1% of FICO High Achievers [?] have a 60 days late payment or worse listed on their credit report.
The fact that you have no serious delinquencies or derogatory descriptions [?] on your credit report is a good thing. The presence of delinquencies and derogatory descriptions are powerful predictors of future payment risk - people with previous late payments are much more likely to pay late in the future.
You have an established credit history.
Your oldest account was opened
13 years agoFICO High Achievers [?] opened their oldest account 19 years ago, on average. Average age of your accounts
5 yearsMost FICO High Achievers [?] have an average age of accounts between 6 and 12 years.
Your FICO score measures the age of your oldest account and the average age of your accounts. Your FICO score was helped because you have a relatively long credit history and you haven't recently opened many new accounts.
You've recently been paying your bills on time.
Your most recent late payment happened
3 years agoMost FICO High Achievers [?], about 93%, have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.
While you have missed payments in the past, you have recently been paying your bills on time, which has helped your FICO score. Staying current with your bills will continue to help your score.

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 02:03:59 GMT

Credit At-A-Glance Total past due [?] Credit history [?] Late payments [?] No accounts past due 13 Years 2 Total balance of Your revolving accounts [?] $32,918 Your mortgages [?] $0 Your installment loans [?] $35,911 Total number of Accounts [?] 28 Accounts with balances [?] 8 Accounts opened in past year [?] 5 Recent inquiries [?] 0 Collections [?] 0 Public Records [?] 0

= Marks an aspect of your credit that is hurting your FICO® score.

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 02:08:10 GMT

BeatingtheSystem wrote:

Credit At-A-Glance Total past due [?] Credit history [?] Late payments [?] No accounts past due 13 Years 2 Total balance of Your revolving accounts [?] $32,918 Your mortgages [?] $0 Your installment loans [?] $35,911 Total number of Accounts [?] 28 Accounts with balances [?] 8 Accounts opened in past year [?] 5 Recent inquiries [?] 0 Collections [?] 0 Public Records [?] 0
= Marks an aspect of your credit that is hurting your FICO® score.

Are the installment accounts student loans or auto loans? I see that they lates are 30 day lates, has his been during the past two years? It doesn't look like you are using a lot of your avail credit. What do you interestrates look like on those? Think you may want to try and BT any balance you have on that card or pay it off. If you can get some of your accounts to report a 0 balance, that will help as well.

Looks llike you have almost 100,000 in avail, From what I see the best thing you can do is to get some accounts to report 0 balance. the lates will heal with time. I would definitely sockdrawer Chase. they probably jacked you on that first late.

Re: Requested reduced APR...CCC said APR is increasing

Niki9 — Wed, 05 Dec 2007 03:27:45 GMT

FYI:

Major credit card companies such as Citigroup Inc. and JPMorgan Chase & Co. have said they will discontinue the practice of raising a customer's interest rate based solely on a credit report. Capital One said its long-standing policy is not to change customers' interest rates if their credit scores go down.

here is the whole story:

http://www.sacbee.com/840/story/542515.html

Re: Requested reduced APR...CCC said APR is increasing

haulingthescoreup — Wed, 05 Dec 2007 03:34:17 GMT

@BeatingtheSystem wrote:
Just started tracking my FICO scores on 10/7/07

TU scores:
11/3 = 716
11/10 = 716
12/4 = 712

EQ scores:
10/7 = 664
11/3 = 673
11/10 = 662
12/4 = 692

EX scores:
11/3 = 728
11/10 = 729
12/4 = 704 ---note this score drop

It was your EX score that dropped, and supposedly it was EX that sent the alert. EX won't give positives, but what do they list for your negatives?

That sudden drop in EX must mean something!

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Wed, 05 Dec 2007 05:49:45 GMT

thanks for the link.

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 13:03:08 GMT

This part of your post caught my eye:

the customer service rep informed me I was not eligible for a reduced rate and, in fact, would be receiving notification within the next 7-10 days informing me that my APR was increasing in Feb '08

Because according to a press release from Chase's website, they will stop this type of practice effective March 1, 2008.

http://www.chaseclearandsimple.com/Media_Pressreleases_111907.html

I was wondering when I read that, will they put in their last jabs before they officially stop?

Re: Requested reduced APR...CCC said APR is increasing

Anonymous — Wed, 05 Dec 2007 13:24:40 GMT

PenguinGeek wrote:
This part of your post caught my eye:

the customer service rep informed me I was not eligible for a reduced rate and, in fact, would be receiving notification within the next 7-10 days informing me that my APR was increasing in Feb '08

Because according to a press release from Chase's website, they will stop this type of practice effective March 1, 2008.

http://www.chaseclearandsimple.com/Media_Pressreleases_111907.html

I was wondering when I read that, will they put in their last jabs before they officially stop?

I have a feeling they will hit as many as they can find justification for before the deadline. But Chase has been historically known for ratejacking anyway at the drop of a hat. If possible, the OP can call othe issuers to see if they will offer a good BT if there is a balance on the account. For some reason, issuers get wonly when they see you using too many cards, I use different cards for different reasons and messed up and let balances report on cards I generally don't hopefully, they will all updatewith new 0 balances before anyone gets an itchy finger.

Re: Requested reduced APR...CCC said APR is increasing

haulingthescoreup — Wed, 05 Dec 2007 15:15:45 GMT

Brammy wrote:

I have a feeling they will hit as many as they can find justification for before the deadline. But Chase has been historically known for ratejacking anyway at the drop of a hat. If possible, the OP can call othe issuers to see if they will offer a good BT if there is a balance on the account. For some reason, issuers get wonly when they see you using too many cards, I use different cards for different reasons and messed up and let balances report on cards I generally don't hopefully, they will all updatewith new 0 balances before anyone gets an itchy finger

Every penny of revolving debt I have (such as it is) is now over on the HELOC, and it's being paid down at $1500/ month. The only exception is a $45 balance to J.Crew, because by golly, they WILL cut a statement, and they WILL report to the CRA's, if I have to pay finance charges on that $45 for the rest of my life. (Which is probably what they want.)

Re: Requested reduced APR...CCC said APR is increasing

BeatingtheSystem — Thu, 06 Dec 2007 22:45:35 GMT

I don't have any doubt that is their objective.

Re: Requested reduced APR...CCC said APR is increasing

haulingthescoreup — Fri, 07 Dec 2007 01:54:14 GMT

I'm only keeping them alive because I'm trying to GW some lates. Can you hear the grinding of my teeth?