IMPORTANT -- Question about rate changes and payment amounts for Chase

[Anonymous]

This question isn't really for me, although since I have a few Chase cards, I am now certainly interested.

My friend called me this a.m. all upset.  Chase had sent her a letter saying that because she hadn't been making more substantial payments, they were hiking her interest rate from 8.9% to 24%.  She has always made more than minimum payments, and she has NEVER been late.  I think she's had Chase for 2 years.  She has other credit cards (AmEx blue, etc.) that she has also never been late on, and has made more than the minimum payment each time.  She called Chase and they told her she needed to be making more substantial payments, and even if she paid off the balance in full today, she couldn't keep her 8.9% rate.  The first year, it was a 0% card.  Then it switched to 8.9% fixed.

She's frantic.  Does anyone have any advice, insight, or experience I can pass on to her?

[MidnightVoice]

What is her % utilization?  Is she nearly maxed out?

Message Edited by MidnightVoice on 09-17-2007 11:18 AM

[Anonymous]

I'm not sure what her utilization is.. but I think she might be fairly high in that department right now.  However, her payment history is pristine, and she's always paid over the minimum amount on all her cards and payments.

[Anonymous]

she told me she has some high balances... but not totally maxed...

[Anonymous]

When you have high balances and make close to minimum payments your issuers WILL rate jack you.  They take it as a sign that you are sturrgling with debt and want to collect as much as they can before you go belly up.  Sucks when you think you are following the terms an conditions of your card.

Again, its been said enough.  NEVER max out (or nearly so). TRY not to carry more than 30% of your avail balance or 1-9 if you can get it.

Sorry this happened.  Happened to me before as well.  With good payment hisory she can probably ask for a recon in 6mos but chase is running very close to subprime in the way they treat their customers.

Message Edited by Brammy on 09-17-2007 06:38 PM

[MidnightVoice]

There have been other posts on similar events with other CCCs, especially right now with the credit problems in the economy.

I don't think they like ANY card to regularly carry a balance over 50%, and I think they HATE minimum payments.  Even though they make money this way, they start to get nervous.

So I assume one should be at below 50% util reporting, and paying at least twice the minumum to avoid problems.

Or just don't carry a balance 

[Anonymous]

Thanks so much!  I'll tell her all this.  These cards aren't new, however.  The Chase card she's had for 2 years or more, and she's had perfect payment history with more than minimum being paid each time.  It just really BITES!

[MidnightVoice]

New or old does not seem to matter.  If they scent blood in the water (potential credit problems) they will strke fast

[cgmiller63]

I just closed Crap1 because they rate-jacked me. I always pay much more than the minimum payment and have never been late.  It's just the CC's way to make more money off you.