WAMU/Providian notified of APR increase,if Close Account, how does that affect FICO

[Anonymous]

WAMU/PROVIDIAN sent notice of increase of APR  to 31.99 from 24.5  by Jan 08 due to debt util. I have never been late on any CC.This is my oldest card- since 2000. I want to send letter rejecting increase, close the account and pay it off asap-9000 CL (also largest limit). I have other cards with lower CL and more recent - some this year. It will take me at least a year or 2 to pay off this WAMU card.  I have been working for 5 years recovering from lost business and IRS lean which is almost finished. WAMU/PROVIDIAN was the only card that would give me CC back then.  Also notice says if I write the letter before the deadline of 12/30/07 requesting to close account and keep current terms, will WAMU close and keep at 24.5. WIll they?  current credit score is 660-  Will closing an account that is the oldest and highest CL lower my FICO?

[Anonymous]

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Scorebetter wrote:

WAMU/PROVIDIAN sent notice of increase of APR  to 31.99 from 24.5  by Jan 08 due to debt util. I have never been late on any CC.This is my oldest card- since 2000. I want to send letter rejecting increase, close the account and pay it off asap-9000 CL (also largest limit). I have other cards with lower CL and more recent - some this year. It will take me at least a year or 2 to pay off this WAMU card.  I have been working for 5 years recovering from lost business and IRS lean which is almost finished. WAMU/PROVIDIAN was the only card that would give me CC back then.  Also notice says if I write the letter before the deadline of 12/30/07 requesting to close account and keep current terms, will WAMU close and keep at 24.5. WIll they?  current credit score is 660-  Will closing an account that is the oldest and highest CL lower my FICO?

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They are ratejacking you due to uti?  WOW!! In my T&Cs they promised not to ratejack based on that.  IF you cannot BT the balance and can't afford that rate (who could?) I would definitely close the card.  But before you do, see if you may be able to open another card, with a BT of 0%.  If so I would BT it and put it in sockdrawer

What is your overall uti?

[Anonymous]

maybe try calling them, perhaps it was a mistake or computer trigered letter.

[Anonymous]

BTW losing the account with a blance will definitely effect your score as it will look like you are utilizing more than you have avail.

[Anonymous]

Util Ratio around 80%, But last month I paid off the other WAMU/PROV I had thur CITIFINANCIAL  installment and they issued CC also for 2000 18%. I have heard WAMU/PROV will drop CL  if you pay off a card and are hard to deal with when getting APR decreased.

[Anonymous]

Yes, they may drop your CL down to the balance.  This is what they did to me making my CL a very strange $2829 (was $3700)- however, they only did that once.   Best thing with this cards is to PIF as soon as possible - hopefully with a low rate BT.  At 31.99%, I wouldn't even worry about getting a 0% transfer.  Amex Blue has a nice 4.99% for life of balance promo.

If that is not an option, I would bite the bullet and close the account.  Paying an extra 7% APR on 8k is just too much!

Message Edited by Cooneyca on 11-18-2007 02:13 PM

[Anonymous]

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Scorebetter wrote:

Util Ratio around 80%, But last month I paid off the other WAMU/PROV I had thur CITIFINANCIAL  installment and they issued CC also for 2000 18%. I have heard WAMU/PROV will drop CL  if you pay off a card and are hard to deal with when getting APR decreased.

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 This is one thing lenders do not lilke to see.  How old is your history?  You may try Juniper with that amount in the BT but they don't like to see high uti either.  If the new interest rate will make it impossible to pay off, close it. otherwise pay on it for 6 mos to a year and see if they will reduce it.   With that uti it will be hard to BT.  MAybe someone else will come along soon with other suggestions.

[Anonymous]

There is always Cap1 but you are rolling the dice anytime you apply for them.  IF you do, apply for one of their better cards with the WaMu balance in the BT field.

[Anonymous]

Yikes!!! That's 200/mo alone in interest!!! How in the world did you get that balance even at 24%

[Anonymous]

This is EXACTLY what I don't like about WAMU!!!  They did the same to me about a year ago (jacked all rates to 31.99% even though no lates with ANY account).  I agree that if you can BT at 0% with another card you should absolutely do it and bid Wamu good riddance!!!