Credit One change in Terms - check yours!

[stefanc]

I just re-read my CIT from Credit one (included in my last statement). I've been hanging onto it for age at the $6.50 per month annual fee, making a charge every few months for something small...

The annual fee will go up to $99 ($8.25 per month), minimum payment to 5%

BUT here is a new one folks...

They are doing away with the grace period on purchases!

"periodic finance charges will be assessed from the date of purchase..."

Time to close it and let it age off!

[texasbill]

I just got my Credit One statement, and called the "bank" to verify the "no grace period on anything" rule. The helpful person answering "on behalf of" Credit One confirmed this was an across the board decision irregardless of payment history or credit score. I did ask when they were going to adopt the other items required by the new legislation, such as not charging for making an electronic standard payment, and they had no information on this at all. I think eliminatinmg the grace period for purchases was an awful decision, and I would like to see if the laws being reviewed can be adjuisted to prevent this kind of treatment for customers who pay on time and in full.

I feel like I am stuck between a rock and a Fico score, since I need accounts to continue for aging (and credit lines) as I do not have much of either except them, Orchard and Juniper. I am thinking that I need to get the sucker to zero and place in the freezer ASAP for emergencies, and just eat the monthly fee for now. I was holding off on applying for any more credit, but I may check with my local credit union to see if I reached their requirements for a loan/credit card. (Had a secured share loan to build history with them that is paid and closed, but this was before the latest rounds of cardjacking by all of the banks.)

I would appreciate any advice.

FICO: 655 (EQ), 619 (TU -took a hit for adding Juniper and has not recovered yet) EX (plus?) 635

[Anonymous]

I cancelled mine and ran it through the shredder. Im tired of paying $7.95 to make a paymnet. Now that I read this I feel even better about it.

[stefanc]

I just called and closed mine - thankfully I am in a position that it will not change my utilization and I actually have a credit balance with them. Do you think they'll send me a check for 17 cents?

I was willing to spend the $6.50 per month to keep it open, as I certainly knew upfront that was the case - but I will not bother with a card that has no grace period!

I also think it is crazy for them to do this, I understand I am not making them much money as I never carry a balance and always prepay a few months  - however they just lost my risk free $6.50 per month - If there are thousands, tens of thousands of card holders like me that close their cards they are losing some serious income for no reason. Oh well!

texasbill, I would certainly talk to your CU, and see what they have to offer you. Even if it is a share secured card, you'll be saving the monthly fee from Credit One and building your relationship with them even more. If you close your card now it will likely still age for the next 10 years until it falls off. If you do close it I would certainly pay it down to ZERO first, as it looks like they tack on some lovely fees for a closed account with a balance.

Just my thoughts... 

[Anonymous]

do you know when this will take affect? I do not get mail statements..just electronic ones and have heard nothing from them.

Thanks

[stefanc]

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@Anonymous wrote:

do you know when this will take affect? I do not get mail statements..just electronic ones and have heard nothing from them.

Thanks

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Mine says "These changes will take effect starting with your January 2010 statment."

Hope that helps! 

[moonman]

Credit one did the same thing to me about this time last year but my annual fee went to 78 dollars but my purchase period is still the same so far.My card has a 1500 limit but by next month i will close it because it has served its purpose and i now have three prime cards to build upon now.

[Anonymous]

This is interesting to me. I have not received mine yet. When I get my next bill I will review it thouroghly. I just checked online and for the card I have the terms and conditions on their site havent changed. But you said this is effective Jan 2010 so it may remain until then. If they do all this I will either sockdrawer the card and eat the monthly fee for building my credit until I can get prime or may close it those are ridiculous terms and I have a housholdbank card I could still use.

[moonman]

I though First Premiere was a bottom feeder but Credit One is starting to set a lower standard too.