Chase Freedom: APR reduction vs. closing + reapp

[Anonymous]

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@Ghoshida wrote:

Hello!

I've got my Freedom for 14 months. Started with a measly $500 and a monstrous 22.99% APR. The APR hasn't kicked in yet, couple of statements with 0% promo remaining.

Since then, my credit improved (by about 100 points), got the CSP and the Southwest Premier; got some CLIs here and there and did some shuffling. Now the Freedom is at $4700. When the 0% promo gets over, I'm thinking of doing either of two things:

(a) Shuffle some more credit limits, get Freedom to $5k, make it Visa Sig, ask for APR reduction

(b) Move over Freedom CL to CSP, close Freedom, re-app for Freedom next year (24 months since I got this one), get the bonus and hopefully a much better APR.

I've heard that APR reduction with Chase is next to impossible; at the same time I don't want to be branded a churner. I don't at all like this APR. I won't carry a balance on this card but "you-never-know". 

What's the better of the two? Any other thoughts?

If I do close the Freedom, how long should I wait between closing and reapplying (apart from the 24 months since last app thing)?

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IDK anything about shuffling of CLs, so I don't have any advice on that matter. Regarding the monstrous APR, I would wait until your promotional APR is over and then see what Chase is offereing. If you don't like it, then deal with it from there. Good luck!!!

[Anonymous]

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@C24Webb wrote:

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase.  I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now.  I've basically "sucked it up" and never expect a reduction.  I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.  

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted.  I applied last February and had 0% until this billing cycle.  I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out).  They gave me 0% for another year!  So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it.  A request can be made every six months.  Basically, I think there are better options for you than closing and reapping.  However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing.  Good luck!

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IDK I could request another 0% APR for my Discover It once the original one runs out. I hardly use the card since they have been stingy with CLIs. My 18 month 0% APR runs out in June, I think, I will be calling to request a lower APR. I will also request another 0% financing offer. I, too, need a new laptop desparately. Thanks for the advice!!!

[Anonymous]

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@Anonymous wrote:

Getting an APR reduction from Chase is like pulling teeth.  Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR?  Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction?  It won't make a difference.

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I agree. If you don't like the APR, then don't use it or charge small purchases and PIF every month. I'm glad I didn't app for anymore Chase credit cards. I have their Slate credit card. I have used it twice. The first time I used it for a balance transfer. A few weeks ago I used it to purchase desks. It will be PIF before the introductory 0% APR.

[Anonymous]

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@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.

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Hey Nixon! When did Chase start offering free FICO scores? Thanks in advance for the information!

[Anonymous]

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@lg8302ch wrote:

I have been there about a year ago and look at me now...my Freedom is 26 months old and I still have my lovely 22,99% APR .  I also first gave it a thought to re-apply but then figued what kind of gamble this would be and I might end up again with 22,99% APR and further cut my AAoA. Simply not worth it IMO.  In the meantime I got over it and now smile at this figure and will just never carry a balance on Freedom. Chase hopefully does not expect me to pay interest at these terms??

As for the PC to a Siggy it was also quite a hassle for me and only possible thru the EO. Reason was that with 22,99% APR it could not be a Signature card. Kind of a circle or me. So I decided to get some answers from the EO to what I could to to qualify for the Siggy in the future and that I would be ready to work on whatever Chase wants me to work on but I would need to know what that should be as I really was clueless.  Again received a standard answer  that Chase  will review accounts periodically and make their adjustments with the APR and then I might be eligible. That answer was not good enough and I wanted an explanation to what could be improved to become  eligible .. never got that answer but Chase sent me the Siggy instead. Mission accomplished. When all this happended my Fico EQ and EX were both over 800. Not good enough for Freedom Siggy but I got approved for Marriott and CSP both Signature cards with high limits.  Why do I qualify for CSP with high limit and not for Freedom Siggy? Nobody managed to get me this answer... I know I was a stubborn customer on the way to my Freedom Signature.

Good luck on your mission and I truly hope it gets smoother for you

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Congratualtions!!!! Sometimes you have to play hardball with credit card companies. I'm happy everything worked out for you!!

[Anonymous]

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@Ghoshida wrote:

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@Anonymous wrote:

Getting an APR reduction from Chase is like pulling teeth.  Another thing you should keep in mind is you can close the freedom and then re-app but what will happen if they give you the same APR?  Then what?

The question is, is the freedom a MUST HAVE card for you? Do you carry a balance because if you don't then why even bother with APR reduction?  It won't make a difference.

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The only reason I think I shouldn't get the same APR is because I have a much better report now. Accounts are older, utilization is lower, got better cards, have overall higher CLs.

In fact I closed my Slate when it turned 5 months and started getting Chase pre-app offers on its website almost immediately afterwards. Guess what, the APR came down 5% (22.99-17.99). I know it's not the best but I believe the two cards belong to the same pricing category; so an improvement for Slate APR may mean an improvement for Freedom as well? Also I managed the CSP and the Southwest and they're all < 16%.

And by the time 24 months elapse, my scores may go up another 20-30 points (inquiries dropping off, AAoA increasing etc.) so even better rates? 

Is it a must-have card for me? Well it forms my trifecta (got checking and CSP) so fits very well. However my spouse also got the Freedom (much better offer and CL) and Chase allows transfer of MR points so I might just make use of hers. 

So why I want it? As I explained in my other reply, it's more emotional than economic. One, I believe I deserve better (got from other lenders, why not Chase) and two, just because. 

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There is no doubt that you deserve better. However, sometimes it may be best to be still. I have found the advice on this forum to be invaluable. I believe you have been given some excellent options.

You stated that your scores are going to increase again. Maybe you should wait.

Since you're willing to close your account, have you done any research to see if their is a better card out there for you? If a company doesn't value me as a customer, than I give my business to one that does. For me, it's that simple... Maybe removing your emotions from the equation will help, and just view the situation from an economic standpoint. Good luck on your decision!!!

[Anonymous]

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@Ghoshida wrote:

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@MstrPTato wrote:

I would keep the current line open, move all but $1000 to the CSP. Just use the freedom for the rotating categories. Doesn't CSP have 15.24%? If you ever need to carry a balance, you would use that one.

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That would work in general; but under my current financial situation, I carry a balance to next month. Not interest-bearing, but I pay off after the statement is generated. Because of Freedom's good categories, I'd use $400 p.m on average and let it report. So right now, reducing the CL might make my utilization look horrible.

I'm just starting to build some savings; so I prefer stashing whatever extra money I get into that. So for maybe a year or so I wouldn't be able to follow the 1%, 1 card reporting rule that people here preach. My overall utilization is still less than 10% but most of it sits on CSP, Sallie Mae, Freedom, and QS. And from this month, Discover

Between Freedom and CSP (if they had same APR), carrying balance might make sense on Freedom more; because of the 5% rewards, even after paying 2-3% interest (if I ever carried for say 3 months) I'll still be positive. On CSP, not so much.

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Are you carrying a balance on a 0% interest credit card?

[takeshi74]

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@Ghoshida wrote:

APR reduction on Chase is more of a psychological thing rather than an economic thing. I know it's not rational but it keeps bothering me. My AAoA isn't great (just about 15 months;

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So it's worth it to you to further impact your AAoA to do this?  I'm not arguing one way or the other.  It's your call to make.  Just asking if it's really a bigger priority when you can avoid accruing interest in the first place.

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@Ghoshida wrote:

That would work in general; but under my current financial situation, I carry a balance to next month. Not interest-bearing, but I pay off after the statement is generated.

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That's not carrying a balance.  That's using your grace period.

[Ghoshida]

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@beautifulblaquepearl wrote:

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@C24Webb wrote:

I think you could TRY option a, knowing that they will probably refuse the APR reduction... I, along with many others, are in the same boat with Chase.  I love the Freedom but really wish the APR wasn't so high (at 22.99% as well) because I know I qualify for a better rate now.  I've basically "sucked it up" and never expect a reduction.  I'd rather keep the history I've had with the card and carry a balance on my Discover (12.99%, currently under 0% promo) or with USAA (13.9%) if I had to rather than on the Freedom.  

I see you have a Discover as well... they are VERY flexible with lowering APRs (there are quite a few threads indicating most people who request a reduction get at least a small one) and are known to offer 0% for 6 or 12 months if a permanent reduction can't be made or isn't wanted.  I applied last February and had 0% until this billing cycle.  I need a new laptop soon, so I asked if a 0% offer was available (somewhat expecting a denial because my 0% promo JUST ran out).  They gave me 0% for another year!  So, if something came up and you needed to carry a balance, you could see what they have to offer and put it on the it.  A request can be made every six months.  Basically, I think there are better options for you than closing and reapping.  However, depending on your AAoA, desire for another sign up bonus, and how much you really want the reduced APR, doing that might be the best thing.  Good luck!

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IDK I could request another 0% APR for my Discover It once the original one runs out. I hardly use the card since they have been stingy with CLIs. My 18 month 0% APR runs out in June, I think, I will be calling to request a lower APR. I will also request another 0% financing offer. I, too, need a new laptop desparately. Thanks for the advice!!!

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You can call them up or start a chat and ask for available offers; people here have reported success in lowering APR, getting additional spend bonuses, etc.

[Ghoshida]

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@beautifulblaquepearl wrote:

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@Anonymous wrote:
I plan on PC my Freedom to a Slate for free FICO if they don't extend it to other Chase cards. And then PC my CSP to Freedom to keep 15.99% APR.

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Hey Nixon! When did Chase start offering free FICO scores? Thanks in advance for the information!

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I believe starting March 2015, they've begun to offer free EX FICO only on their Slate cards. Send them a secured message or call them to get it activated on your Slate.