Nuclear Option with Amazon Chase

[kdm31091]

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@cakkd wrote:

Btw, does anyone think Discover would lower my APR, or would they let me walk?

Discover for me has the distinct disadvantage of being near useless when I travel overseas.

Sunrise -- Yep. I have nothing really to lose. 

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Discover absolutely accepts consumer APR reduction requests and grants them frequently, although they don't just give them out like candy. But you have a far better chance with them than with Chase.

Frankly, I think coming at them like "I'm such a great customer! Lower my APR or I'll cancel NOW!" is probably a bit over the top for most situations, but you try whatever you feel is best. I've had luck simply asking for an APR reduction, with no threatening or nuclear options involved.

[icyhot]

I feel like APR reductions are a luxury. The lender is only obligated to give you the terms that are outlined in the agreement, anything else is a courtesy

[Anonymous]

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@cakkd wrote:

If they don't want to lower my APR, they don't want my business all that much. Simple as that.

It's fine, a business transaction where there was no agreement. I feel they lost more than I did, but oh well. I like Amazon rewards, but air travel is just as appealing.

My CS will get a major bump in the next several months, so maybe one of these days I'll apply again. 

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Well yes, they don't particularly want your business if they don't like the terms you want (or even if you appear to be a needy customer, perhaps you will keep requesting APR reductionss etc, which works with some but not chase).

When you say they lost more than you, how much were you putting on the card?

In a lot of industries, CSRs are told to try and retain customers (up to a certain point) but often losing one really isn't a big deal at all.   You would have to be a heavy spender with Chase for them really to care.

[ddemari]

Chase consumer apr reducs like many have said are super rare. they happen, but super rare lol 

[cakkd]

I'd asked them for an APR reduction some months ago and got their canned line, "That's the lowest APR we offer."

And, no, I didn't come at them in a rude or demanding way. I just simply said, "I just received a card with half the APR, and I want to cancel because your APR is too high."

I didn't spend tons on the card, maybe $500 per month, but with a lower APR and higher CL, I would have spent more. Plus, my income has probably increased by 25% since I got the card, and will probably go up a similar amount in the next couple years. Nonetheless, they didn't lose much, while I didn't lose anything. 

[cakkd]

I should also mention, I'm not the type that likes to have 12 open cards. I prefer two or three.

[CH-7-Mission-Accomplished]

I believe Chase allows people to combine credit limits.  If so, you could have rolled that Amazon limit into your other Chase card.

You should not be concerned with the interest rate on a Chase card because you should never carry a balance with them unless you have go a 0 percent balance transfer.

If you need to carry a balnce open a Barclay's Ring card.  It's a flat 8% interest rate.

With very good credit scores, lots of credit unions offer rates between 6% and 10%.

These are the types of cards you carry balances on -- never on someone like Chase.

Why do you care if they cut the rate from 24% to 18%?  It's still a horrible rate and it would be lunacy to carry a balance with them.

You may well get a reduction from Discover, but again you are probably looking at 15%-plus, double what you could get from Barclay Ring or a CU.

There are transaction cards that you use for points, cash back, certain extra guaranties, primary car rental insurance, etc.  These are never the cards to carry a balance on.

And lots of people have a 15 year old Macy's card or something similar.  Those cards have like 24% interest and nobody ever thinks anything about keeping them forever.  They dont' carry a balance.

[kdm31091]

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@CH-7-Mission-Accomplished wrote:

I believe Chase allows people to combine credit limits.  If so, you could have rolled that Amazon limit into your other Chase card.

You should not be concerned with the interest rate on a Chase card because you should never carry a balance with them unless you have go a 0 percent balance transfer.

If you need to carry a balnce open a Barclay's Ring card.  It's a flat 8% interest rate.

With very good credit scores, lots of credit unions offer rates between 6% and 10%.

These are the types of cards you carry balances on -- never on someone like Chase.

Why do you care if they cut the rate from 24% to 18%?  It's still a horrible rate and it would be lunacy to carry a balance with them.

You may well get a reduction from Discover, but again you are probably looking at 15%-plus, double what you could get from Barclay Ring or a CU.

There are transaction cards that you use for points, cash back, certain extra guaranties, primary car rental insurance, etc.  These are never the cards to carry a balance on.

And lots of people have a 15 year old Macy's card or something similar.  Those cards have like 24% interest and nobody ever thinks anything about keeping them forever.  They dont' carry a balance.

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Here's the problem. When someone "needs to carry a balance", typically they may already be in debt. So when they need that 8% Barclay Ring, they aren't going to be able to get it.

There is nothing wrong with requesting APR reductions. I understand what you are saying -- rewards cards are NOT meant for balance carrying and that is 100% true. And yes, 24% or 18%, doesn't matter, still going to cost you a lot to carry the balance.

Having said that: stuff happens in life. Our dog gets sick. We need unexpected car repairs. Our pipes burst. Sometimes you may not have the money and may have to charge the unexpected expense. Since it is unexpected, you don't exactly have time to apply for a Ring, hope you get it, and wait for it to come in the mail. So you're going to charge it on what you have. The point is that there is nothing to lose from seeking the lowest APR on your cards, although yes, if your profile is in good shape you should consider a backup no frills low APR card, and/or a healthy emergency fund, ideally.

[CH-7-Mission-Accomplished]

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@kdm31091 wrote:

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@CH-7-Mission-Accomplished wrote:

I believe Chase allows people to combine credit limits.  If so, you could have rolled that Amazon limit into your other Chase card.

You should not be concerned with the interest rate on a Chase card because you should never carry a balance with them unless you have go a 0 percent balance transfer.

If you need to carry a balnce open a Barclay's Ring card.  It's a flat 8% interest rate.

With very good credit scores, lots of credit unions offer rates between 6% and 10%.

These are the types of cards you carry balances on -- never on someone like Chase.

Why do you care if they cut the rate from 24% to 18%?  It's still a horrible rate and it would be lunacy to carry a balance with them.

You may well get a reduction from Discover, but again you are probably looking at 15%-plus, double what you could get from Barclay Ring or a CU.

There are transaction cards that you use for points, cash back, certain extra guaranties, primary car rental insurance, etc.  These are never the cards to carry a balance on.

And lots of people have a 15 year old Macy's card or something similar.  Those cards have like 24% interest and nobody ever thinks anything about keeping them forever.  They dont' carry a balance.

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Here's the problem. When someone "needs to carry a balance", typically they may already be in debt. So when they need that 8% Barclay Ring, they aren't going to be able to get it.

There is nothing wrong with requesting APR reductions. I understand what you are saying -- rewards cards are NOT meant for balance carrying and that is 100% true. And yes, 24% or 18%, doesn't matter, still going to cost you a lot to carry the balance.

Having said that: stuff happens in life. Our dog gets sick. We need unexpected car repairs. Our pipes burst. Sometimes you may not have the money and may have to charge the unexpected expense. Since it is unexpected, you don't exactly have time to apply for a Ring, hope you get it, and wait for it to come in the mail. So you're going to charge it on what you have. The point is that there is nothing to lose from seeking the lowest APR on your cards, although yes, if your profile is in good shape you should consider a backup no frills low APR card, and/or a healthy emergency fund, ideally.

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I couldn't agree with you more!

My point was that rather than closing out 10 year old cards because you are PO'd that they won't cut your interest rate, do the sensible thing and open some backup standby low interest rate cards.  You are right -- when you need to borrow money it's too late to get a low rate card.

I burned Chase for 50K and AMEX for about 20K.  My cards were at 24% and jumped to 35%, I believe.  Do you know that many credit union cards have no penalty rate whatsoever?  Yep, you default and the rate stays the same.

So a card portfolio should provide for rewards and perks, but most importantly, it should permit you to borrow money at a reasonable rate when "life happens."

[cakkd]

Yep, my finance goals these days don't have tons to do with CSs:

1) Stay within my budget.

2) Get my debt-to income as low as possible

3) Have two months of reserves

4) Get a couple of cards with low APRs just in case

I find CC rewards in general to be a bit of fool's gold.