topic Re: Newbie looking for help lowering APR or balance transfer in Credit Cards

Newbie looking for help lowering APR or balance transfer

Anonymous — Fri, 23 Nov 2012 20:19:12 GMT

Hi All,

Have sifted the boards quite a bit and decided to take the plunge and solicit advice.. I lament not coming on here ages ago, I'm sure my credit score would be way better than it is.. Here's my info:

I have 1 cc - Chase - 2750/3000 - the APR is killing me - 29.99% This came from an incident where my cc payment was due on a day when I *broke my kneecap* at 6am. I spent day @ hospital and was unable to get to the bank to make payment on time (the payment was on my to do list that day, no lie). Chase upped my APR 10% after that and REFUSED to drop it after many phone calls, letters, and formal complaints. That was over 3 years ago.. no late payments since, I schedule online..

I have recently had a lot of medical bills and my balance is sitting at $2750. Help!

Any advice - if I ask them to lower my APR, do I have a shot?

My scores are EQ 640, FICO 664. BK in 2007. NO late payments on my credit reports (I just pulled them) - Chase didn't report my late payment.. they just upped the APR on me

I mistakenly opened up a Capital One secured card *this month* before I realized my credit score was good enough to qualify me for unsecured (it was in the high 5s last yr). I've thought about keeping the secured open for 3 months and then reapplying for unsecured..

I am unsure if I would qualify for Discover or Barclays - AMEX, BoA were burned in BK, Citi was NOT. I tried cc thru my CU, but didn't meet their min checking balance requirements. I can sign up to PSECU thru family members (in case that's applicable). I've also thought about opening up a few department store cards just to reach that min 3 cc accts (like JCP, VS, etc.) and of course lower my overall util. Anyways, lots of thoughts here, need to get out of my own head..

ALL advice is welcome and appreciated!! Scolding will be noted for the Cap One mistake..

Re: Newbie looking for help lowering APR or balance transfer

youngandcreditwrthy — Sat, 24 Nov 2012 01:15:26 GMT

Citi prob wont approve you.

All banks arw required to review your cc accts for better terms every six months per the card act. You need to call the Cus Service dept Nd remind them of that. With your scores (almost prime, not quite) I'd try for a Barclaycard... Most of them have bal xfers for 6-15 months, which are pretty good... They also do very well with reconsiderations for approval and increasing initial credit lines. Check barclaycardus.com !!!!

What is your aaoa and overall util!?? Call your other creditors and ask for clis with sps ONLY!:-) clis will reduce util, although you do want to pay off debt...not simply increase the limit like our lovely federal government LOL refer to debt ceiling debate!

Re: Newbie looking for help lowering APR or balance transfer

youngandcreditwrthy — Sat, 24 Nov 2012 01:18:02 GMT

Wait... Is Chase your only account? If so, your util may be too high. Do you have any installment loan history? You may have a shot with Discover, like the Motiva I got with 15 mos 0% on bts and prchases.

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Sat, 24 Nov 2012 01:38:16 GMT

The only thing you could possibly do is get in contact with the executive office in IL. The number can be found in the stickies under backdoor numbers. Other than that I just dont see anyone approving you at this point. Carrying a balance that high to your limit which is around 91%util pretty much throws any kind of fico score right out the window to a lender. I just dont see them doing much for you according to whats on paper.

Good Luck

Re: Newbie looking for help lowering APR or balance transfer

youngandcreditwrthy — Sat, 24 Nov 2012 01:47:30 GMT

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Sat, 24 Nov 2012 03:58:37 GMT

Thank you for your time, really appreciate it

AAoA - 7 yrs. Util is 92%, but that's partially because a student loan is coming up that is closed and basically says I have 20k more debt than I actually do, so obviously I need to fix that, just caught it last wk.

I really have had my head in the sand it would appear as far as my credit goes - I've been keeping my nose clean, not taking on additional cards other than my Chase, thinking I couldn't get a better APR if I tried (when my balance was considerably lower than present), paying with cash, not taking out a car loan because I thought I would get bad terms, so bought used instead, paid w/ cash and loan from fam... sigh - I know, I should have woken up ages ago, shame on me for playing the ostrich for so long, it's costing me huge interest at present!

I have also caught quite a few past due marks from my BK that shouldn't be there as they are AFTER the month I filed. I am horrified by that, as they've been on my credit report for 5 yrs dragging me down and am now just discovering they shouldn't be there when I thought they were normal this whole time. Anyways, I'm furiously typing my letters to each CRA - researching articles in bankruptcy law to support my claims. I realize now I can't apply for anything else until I clean up these errors, which I am certain will give me a nice jump in my score. Meanwhile I'm paying $250/month on card, as it is all I can afford right now esp with holidays upon us.

I will look into Barclays after I fix these errors. I guess Discover is not BK friendly, although I won't have to wait much longer for the marks to drop off.. 1.3 yrs at the longest...

Any thoughts from anyone on my idea to apply for unsecured Capital1 in 3 mos time?

Re: Newbie looking for help lowering APR or balance transfer

nicholasyud — Sat, 24 Nov 2012 04:12:50 GMT

Please dont gone too far from debt my friend.

Thats 93% Utili kill your score there. You should increase at least 30 points after you paid that Uti down.

Most of CC company gonna freaky with your utili when you apps for a new card.

Let put it this way, If you can take care of that 93% Utili, your score should went up then your change getting approved for some higher limit card. or

Choose to stay this way and apps then you either Denied or get some toys limit. So hope you understand it.

Please take care of your debt first before its went too far.

Wish you best.......

Re: Newbie looking for help lowering APR or balance transfer

distantarray — Sat, 24 Nov 2012 04:16:31 GMT

@nicholasyud wrote:
Please dont gone too far from debt my friend.
Thats 93% Utili kill your score there. You should increase at least 30 points after you paid that Uti down.

honestly 30 points for 93% is being VERY MODEST, his scores will probably go up atleast 80 points if it's caught up under 5% imo

Re: Newbie looking for help lowering APR or balance transfer

nicholasyud — Sat, 24 Nov 2012 04:17:37 GMT

well i said at least

Re: Newbie looking for help lowering APR or balance transfer

distantarray — Sat, 24 Nov 2012 04:27:39 GMT

my advice is get a second job honestly.

I don't know if you have kids or school to worry about, but if you don't better put in the hours to get some extra cash to pay it off. Otherwise you can't borrow money from your friends or family? also you could potentially drown your debt ratio =x

$2750 / $3000 = 92% utility

Now let's say I added you on my Navy Federal credit card of $17,000 as an AU now you'd have =O

$2,750 / $20,000 limits

that would bring your utility down to 13.75%

So if you have friends and family who would add you on their cards

(kinda hard to convince sometimes cause they don't realize they have virtually no way you can screw them, especially if it's an Amex as long as they don't give you the card which is sent to THEM, they will have no possible way you can ruin them unless you went into their house to steal it)

it'll bring your scores down enough to apply for a good credit card like Citi Simplicity to transfer your balances to at 0% APR for upto 18months.

If you live aroundTampa, FL I would offer to add you onto mine, but people on this boards think I'm weird for offering. I just don't like anyone handing out personal information online to strangers. Rather have you type it in yourself where I won't ever see or have access to it. but if that's weird o wells take it or leave it

Re: Newbie looking for help lowering APR or balance transfer

trumpet-205 — Sat, 24 Nov 2012 05:39:26 GMT

@youngandcreditwrthy wrote:
All banks arw required to review your cc accts for better terms every six months per the card act. You need to call the Cus Service dept Nd remind them of that.

Problem is, APR review and decrease only apply to pre-existing balance, balance that were before penalty APR trigger.

Example,

Let's say I missed my credit card due date with $100 balance, and it triggered 29.99% penalty APR. My APR went from 14.99% to 29.99%. If I pay minimum amount of $15 for the next 6 months, I have $10 excluding fee and interest left. Let's also assume that I charged $500 during this 6 month period and $200 more after. CARD Act mandates that remaning $10 to be charged at 14.99% APR, BUT does NOT mandate that transactions happened after the penalty APR trigger to be subjected to APR decrease. In other words my $700 balance will still be at 29.99% APR.

CARD Act is half-baked and poorly written law driven by politcal motivation, not leveling the play field. It is another failure after overdraft reform and Dodd-Frank reform.

Re: Newbie looking for help lowering APR or balance transfer

youngandcreditwrthy — Sat, 24 Nov 2012 04:59:50 GMT

Lol I don't think that's how it works ...but okay. I know a few friends who had a late pmt w Chase and got a 29.99% apr, then after six months, it was auto-reduced back down to the original rate.

I do agree, however, that the CARD Act could have been implemented sooner and with broader consumer protections. The reality, however, is that to be creditworthy...you must NEVER EVER NEVER NEVER miss any payment on anything that can be recorded on any credit report. Lol

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Sat, 24 Nov 2012 05:06:16 GMT

*her scores

2nd job not possible at present. I'm coming off a major illness, my cc balance doesn't begin to paint the entire picture of the waters I have navigated in medical bill charges. Truly I should be getting 50 gold stars & 0% apr up to my eardrums in recognition for my ability to pay my bills this past year, but TU, EQ, etc just isn't rigged for that type of story and frankly, it's times like these when I come back to the truth that this whole credit thing is a scam (sorry, living overseas opened my eyes. Moving on..). But that's not to say I can't make the system work for me..

AU is a possibility, I will ask, great idea. And I can't believe you would offer that to a complete stranger!! You're kind, really. Do not live in FL.. quite the opposite actually with the snow and sleet outside... I will keep in mind if I get desperate.. lol.

As far as incurring more debt, I am dwindling my medical expenditures over the next few months, so I do not forsee needing to use the cc imminently. It just hurts when $75 goes to interest fees when I have much worthier causes at hand. Sooo I will get on decreasing my util pronto..

Really appreciative of the input everyone, thanks for not scolding me too much..

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Sat, 24 Nov 2012 05:15:25 GMT

Wow. I NEVER got a distinction between pre-penalty interest and post-penalty interest. I carried a balance and I'm sure the balance went up after I broke my kneecap, but I never saw different APRs in my bill. That was in 2009. Perhaps this legislation occured after my injury? Hmmm..

Agreed with the shady reform - friends who live overseas had a LOT of questions for me concerning our legislation with ccs and mortgages - it's difficult to explain to people how a bank could charge 29.99% interest on cc debt, when that is so far beyond being illegal elsewhere, people are rendered speechless..

Re: Newbie looking for help lowering APR or balance transfer

distantarray — Sat, 24 Nov 2012 05:18:50 GMT

for future reference ALWAYS set up auto pay for minimum payment

Re: Newbie looking for help lowering APR or balance transfer

trumpet-205 — Sat, 24 Nov 2012 05:43:59 GMT

@youngandcreditwrthy wrote:
Lol I don't think that's how it works ...but okay. I know a few friends who had a late pmt w Chase and got a 29.99% apr, then after six months, it was auto-reduced back down to the original rate.

It is entirely up to lender's decision to whether reduce your APR completely. CARD Act does not force lender to drop APR.

@sandinmishoes wrote:
Wow. I NEVER got a distinction between pre-penalty interest and post-penalty interest. I carried a balance and I'm sure the balance went up after I broke my kneecap, but I never saw different APRs in my bill. That was in 2009. Perhaps this legislation occured after my injury? Hmmm..

Agreed with the shady reform - friends who live overseas had a LOT of questions for me concerning our legislation with ccs and mortgages - it's difficult to explain to people how a bank could charge 29.99% interest on cc debt, when that is so far beyond being illegal elsewhere, people are rendered speechless..

CARD Act went into effect at 02/2010.

In some countries like Brazil, you have APR like 240% for a credit card due to unstable economy there.

Re: Newbie looking for help lowering APR or balance transfer

distantarray — Sat, 24 Nov 2012 05:47:57 GMT

@trumpet-205 wrote:
CARD Act went into effect at 02/2010.

In some countries like Brazil, you have APR like 240% for a credit card due to unstable economy there.

sounds like fun =)

sounds like charge cards in brazil ftw

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Thu, 29 Nov 2012 02:56:29 GMT

I'm in agreement with everyone else here MsPeach. Paying down your balance will reap instant fico points. I was maxed out on my AMEX for two years and was afraid to even peak at my credit score. I've been paying any extra cash I have towards my balance for the last six months and recently saw a 9 point jump after making a $300 payment. (I only signed up with score watch a few weeks ago)

Re: Newbie looking for help lowering APR or balance transfer

Anonymous — Tue, 05 Feb 2013 20:38:46 GMT

Update:

I did app for Barclays - instant approval for $3k!!

Am going to wait on apping for Cap 1 for another few months..

Meanwhile, while I have run up Barclays a bit over the holidays, I have paid down Chase to ~$2100..

I am hoping to BT this amount by the end of the month to a new card, and then pay down Barclays while paying min on BT..

I have signed up with a really great CU in my state and am set to transfer to good cash into that account. They offer prime CC rates so am hoping to open a CC with them as well..

Stay tuned for more updates as they roll in..

Thank you thank you for the advice everyone!

I am also disupting inaccuracies on my CRs from the BK TLs.. that fight has proved to be quite complicated and I am super confused at the moment.. So on to researching the boards..