Chase Cards interest rates

[CA4Closure]

---

@MrT_521 wrote:

I have a question: I am actually a bit surprised with this discussion of APR rates. I thought that those of us on a credit card forum would not typically carry balances. Do contributors here actually carry balances regularly? Or do you like to get low APRs as a way of raising the perceived value of your credit cards? ("My NFCU credit card has a $45K SL with 2.99% APR!")

While I have carried balances in the past, I have not for probably 15 years now. I do not plan to ever carry a balance again, unless I need funds for something and get a 0% APR promotion or something. I do not give the APR rate one single second of consideration when looking for a new credit card. I don't care if it is 1,000,000%, because I will not use it.

---

Now that I have FICO scores in the 830 range, I want lower APRs. I spend a lot of money on my hobby which is boating, photography (drone and astrophotography) and motorcycling. I just bought a $14,000 400mm lens for sports and aerial photography so I want to space out my payments. Lower APRs would help me tremendously.

[Anonymous]

---

@Turbobuick wrote:

---

@Aim_High wrote:

---

@gman wrote:

I have a Chase Freedom unlimited which is 23.74% and a Chase Sapphire Preferred at 15.9%. When I applied for both cards I just came back from being out of the country for 20 years and my scores were in the high 600's/low 700's. ... My scores are in the low to medium 700's now and I feel I deserve a better rate. Does anyone know if Chase reviews rates based on a request and if so, do they ever lower and are they hard pulls?

---

I'm heavily invested (card accounts) in Chase and I've been with them for over 20 years. 

The standard answer you always get if you call them to talk about APR reduction is that they review APRs periodically and adjust them.  There is no 'hard pull' and you can't even request them to review it or talk to anyone.  As others have posted, it appears you are normally stuck with what they give you at opening a card.  I have a few lenders that won't budge but I always try to reduce my APRs when I can.

Actually, I have a "flaw" in my credit profile that will probably never go away due to Chase, unless I want to cancel an old card.  Back when I had that oldest Chase card in the earliest years, I was heavily in debt due to an unexpected major career transition.  I used the float as much as possible since I didn't have the extra money to pay off my bills early.  Plus, it was also back before you could quickly watch your accounts online and pay real-time.  I normally mailed in paper checks.  I don't believe I was ever reported "late" (30+ days) but I believe I had payments arrive a matter of days late due to my not mailing in time.  Eventually, they jacked my interest rate up to the penalty rate and it has never come back down, even though I've paid on-time for well over 15 years now.  Not that I ever pay interest.  But it stinks that they won't lower it.  27.24% :smileysurprised: Ouch.

---

A little off topic, but a chance to rant. lol

Chase will screw anyone any chance they get. Back in about 2005 Chase offered a cash advance at 2.9% APR until it's paid in full. This was on my, otherwise worthless, Slate card with a $24K CL.  I had need for cash, new business venture, so I opted in for $15K and made minimum payments for a few years. I met their every requirement, but then, around the 2008 recession, they sent me notice that they were more than doubling my minimum payments from 2% to 5%. They basically voided their own contract. When I called and disputed, they said they could do whatever they wanted as long as I got prior notice, it was in the "terms". I was pissed, but not enough to pay an attorney, and paid 2.5 times my previous monthly payment until it was paid off. Chase was unscrupulous and unethical.  A year or so later, the class action suit brought me a few hundred dollars, but I'll never again trust Chase or any bank for that matter.

---

Not sure they were out to get you, or that Chase is out to get everyone at any time, but raising the minimum payment was done to protect themselves, to minimize risk. The low rate you got became more risky them, and they couldn't change the rate unless you defaulted, but raising the minimum seems logical. Unless it's in the agreement, like the rate is, they could raise the minimum payment, again not to get you, but to minimize their risk on a low APR offer.

[Turbobuick]

---

@Anonymous wrote:

---

---

Not sure they were out to get you, or that Chase is out to get everyone at any time, but raising the minimum payment was done to protect themselves, to minimize risk. The low rate you got became more risky them, and they couldn't change the rate unless you defaulted, but raising the minimum seems logical. Unless it's in the agreement, like the rate is, they could raise the minimum payment, again not to get you, but to minimize their risk on a low APR offer.

---

Oh why they did was obvious, but that doesn't make me less bitter. Just because they can, doesn't mean they should. In the end the judge ruled "Chase violated “the implied covenant of good faith and fair dealing.”" Chase settled the claim for $100 million. I imagine they calculated the settlement dollars vs risk of outstanding loans and they came out way ahead. Likely, raising monthly payments 150% caused more defaults than doing nothing.

At the time, I felt like I was being squeezed, and it was a struggle to make the payments. How would you feel if your monthly car payment went from $400 to $1000 overnight? Regardless of any business decision, it's difficult not to take it personally when it's obvious they don't give a f**k about you. 

https://www.creditcards.com/credit-card-news/chase-100-million-minimum-payment-settlement-1282.php 

[Anonymous]

---

@Turbobuick wrote:

---

@Anonymous wrote:

---

---

Not sure they were out to get you, or that Chase is out to get everyone at any time, but raising the minimum payment was done to protect themselves, to minimize risk. The low rate you got became more risky them, and they couldn't change the rate unless you defaulted, but raising the minimum seems logical. Unless it's in the agreement, like the rate is, they could raise the minimum payment, again not to get you, but to minimize their risk on a low APR offer.

---

Oh why they did was obvious, but that doesn't make me less bitter. Just because they can, doesn't mean they should. In the end the judge ruled "Chase violated “the implied covenant of good faith and fair dealing.”" Chase settled the claim for $100 million. I imagine they calculated the settlement dollars vs risk of outstanding loans and they came out way ahead. Likely, raising monthly payments 150% caused more defaults than doing nothing.

At the time, I felt like I was being squeezed, and it was a struggle to make the payments. How would you feel if your monthly car payment went from $400 to $1000 overnight? Regardless of any business decision, it's difficult not to take it personally when it's obvious they don't give a f**k about you. 

https://www.creditcards.com/credit-card-news/chase-100-million-minimum-payment-settlement-1282.php 

---

There are plenty of things card companies do that aren't right. I don't have to do business with them either.

Car loans have stated terms, including payment amount, interest paid, and term of loan. Credit card offers do too, but. Ot usually payment amounts because they can vary, unless you get a fixed loan with stated terms.

Either way, credit card loans are more risky to the borrower than fixed term loans, as they can change things that are not stated in the offer.

As for Chase, I'm on a 0% intro now, and they can't change that intro rate unless I pay late. I pay the minimum now until it expires and will pay it off. If they raise the minimum payment, in my case I'm prepared but I know others use their other promo rates for actual lending needs and that can hurt the cardholder. If you use another promo from another bank in the future, I'd keep a minimum payment mod possibility in mind. This can happen with any issuer.

[VanderSnoot]

---

@Turbobuick wrote:

---

---

Regardless of any business decision, it's difficult not to take it personally when it's obvious they don't give a f**k about you. 

One of the reasons Credit Unions and Community Banks are beloved is that they view their members as customers, not as statistics. They're driven by the bottom line, of course, but it's not their sole criterion in decision-making. Personally, it's how I like to see business done. I don't buy the line that businesses should only be concerned with making a profit, as I think businesses have a responsibility to their customers and employees as well as their shareholders and senior executives.

Chase, Amex, and other large banks get a share of my business, but they don't get all of it. I save my bread and butter for the NFCUs and Self-Helps of the world.