Post subject: Competitive Credit Card Rebates Guest: milavant Posted: Wed May 04, 2005 2:58 pm
I will be the last person in the world to not admit that the Chase Perfectcard at 3% is a little out of tune with today's fierce credit card marketplace. Three years ago, it was great, but the credit card marketplace is now much more competitive.
I have emailed them twice on their website to consider raising their gas rebate to 5% from 3% for every cardholder, to keep pace with today's marketplace. This is similar to what AMEX did when they raised the tiers as of 5-8-05. The AMEX rep I talked to said they felt that they had to go to 5% (after the $6500 tier) to remain competitive.
I only use the Perfectcard when my AMEX cashback is not accepted, so I really do not want to apply for a "better" gas card, plus I already have several other basic 1% cards in the "sockdrawer."
Does anyone think that this is hopeless, or could Chase possible be forced to do this for other than just a few "select" cardholders?
Or am I trying to apply pressure in the wrong place(s)?
Guest: Board Monitor Post subject: Competitive Credit Card Rebates Posted: Thu May 05, 2005 8:41 am
I think if enough consumers complain, then they will listen. I would encourage you to post a review in our consumer reviews section:
http://www.cardratings.com/cardreviewfr.html
The reward card market is extremely competitive at the moment, so let's keep our fingers crossed. Best Regards, Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Competitive Credit Card Rebates Posted: Thu May 05, 2005 3:00 pm
As one who follows rebates - gas and others - very closely, I can tell you that you have about as much chance as a snowball in an allegedly very warm place of getting Chase to change. It is probably much more likely that the 5% rebates will last only through about the end of the year. I've seen this happen too many times.
About a year ago the hot card was AAA Financial Services, the first card to offer a general 5% gas rebate. I think it was an MBNA card. They pulled their offer after about a year. They had hoped that cardholders would run up balances and pay nice jucy finance charges. The story I got was that it didn't work out that way. In general people said oh goody goody, free money, used the card for gas only and paid off their balances at the end of the month. They were bleeding so much money they had to pull the offer.
BJ's Wholesale club also had a 2% rebate program with their affinity card which was pulled after about 18 months, same reason.
Bottom line is that these offers come and go (mostly go), and card issuers would probably go the other way if they got a ground swell of card holders asking for more or higher rebates. In a word, it's all about business. In another word, it's all about profits.
Guest: Board Monitor Post subject: Competitive Credit Card Rebates Posted: Fri May 06, 2005 8:06 am
Good points as usual Ira! I think, however, that some of the 5% rebates on gas will be around for a while. The reward card market is really hot at the moment and has been for quite some time. Best Regards, Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Competitive Credit Card Rebates Posted: Fri May 06, 2005 11:41 am
Curtis, as my dear departed Mom used to say, "From your mouth to God's ears!" Keep those rebates comming! Hess is the first one to offer a (temporary) 10% rebate on gas purchases. Mabe there'll be others. I love the concept of "Pay Me To Do Business With You."
Post subject: Recourse for Credit Card Computer Glitches Guest: CompJock24 Posted: Tue May 03, 2005 3:58 am
Here's an email I wrote to Capital One. I know nobody important is going to read it at CapONE and I don't expect a reply. In order for Capital One to look into this matter, I'd have to write them a letter no later than 60 days after the matter...I just don't feel like wasting the $0.37 postage on them! I am just p-oed that they considered a "post FL hurricane" computer malfunction "Poor standing" on my part...hence the line "Please keep your account in good standing in the future..."!
What should I do if Capital One actually DOES deny me a CLI, or raise my APR (currently 19.8%), if all they can base their decision on is this computer glitch malarki? Should I actually contact the FTC as I've threatened?
Quote: In my online statement, a window pops up saying:
Quote: "Your account has recently been past due, overlimit, or has had a returned payment. While Capital One reserves the right to increase your A.P.R. if you fail to maintain the terms of your account, we have chosen not to do so at this time as we value you as our customer and appreciate your business. Please keep your account in good standing in the future to enable us to provide you with the best possible rates and level of service. Thank you for choosing Capital One."
Not that you (STR-Computer or resident of a foreign country getting paid $0.67 per hour to read this) care or anything but the reason for this stupid little note is due to your or my bank's computer. I had the money in there...as a matter of fact, I did the same thing a day later and the payment was processed!! So if you think you're going to raise my APR (some time in the future) and/or refuse me a Credit Limit Increase ("CLI") based on YOUR STUPIDITY...think again!
Word on the street is, Capital One is now dubbed "CRAPital One"! I can see why! Good luck in the future...A computer is only as smart as a human makes it. It doesn't seem like you all are too bright!
If I am refused a CLI when I request one within the next few weeks, I will file a full report to the FTC claiming unfair account reporting and, if applicable, discrimination based on an error caused by an EFT server request. I've never been late on a payment, my credit is good, my account is constantly active and I carry a $0 balance on all revolving accounts. Therefore, I should not have a problem getting a Credit Limit Increase instantly upon request. We'll see...! Have a great day.
In the future I will not do business with you and I will not recommend you to others. Thank you for your time.
Two Capital Letters ----------------- All expressions and statements made in this e-mail are fully protected by the U.S. Constitution, Amendment I, "Freedom of Speech".
Guest: CompJock24 Post subject: Recourse for Credit Card Computer Glitches Posted: Thu May 05, 2005 3:18 am
Okay, first of all, your nasty sarcasm is unecessary, but respectfully appreciated!
Secondly, it seems that no matter how hard you try to stay on top of things, there's always that ONE little "mistake" that makes your life a living heck. Then you have to fight for your life to clear everything up ONLY because of the fractional percetage of the low-lifes who lie and cheat (ie, are dishonest), ruing it for everybody else. So, when you try to explain to them they made a mistake, they give you the run around having you explain yourself to 10 different people. You all have been there. You know what I'm talking about.
I can see where their message would be appropriate if I had cut them an intentional bumb check, knowing I didn't have money in there or whatever. But the fact of the matter is, there's always money in my account so there was absolutely NO reason for a returned ACH payment (automatic) consequently triggering that "warning". [For the record, Capital One nor my bank have yet to share a reason for that glitch.]
'Great, you didn't do anything...THIS TIME!', but what if Capital One had raised my APR, or charged me a fee? If I am not at fault, why should I be penalized for it? How do you know that Capital One didn't put me on the "Black List" so that when I request a CLI, I am automatically declined based on this particular instance?* Not to mention, when you mess up on one credit card, all of your other credit card accounts' APRs spike automatically. THEN you have to beg and plead your case with them as well!
*: Yes, I know...I do sound paranoid or what have you, but can you honestly tell me it doesn't bug the heck out of you when you try so hard at building and maintaining something, such as your credit history, only to have it shot down by a measly computer glitch (or the like)?
Nevertheless, this may come as a shock to you all, but that's what life is all about! And I don't see it as a waste of keystrokes. My goal in writing that letter wasn't for someone to read it and review my account, then bend over and have them kiss my tukess. No, no, no, not at all! It was simply my way of venting out my frustration with them. And I personally believe it's always better to vent your anger on a piece of paper (or in my case a computer screen) then to do so by yelling at someone in person or over the phone. When you type, 'backspace' is your best friend. It's sort of like a verbal apology, only without physically hurting someone elses feelings first.
Guest: Polonius Credit Expert (100+ Posts) Post subject: Recourse for Credit Card Computer Glitches Posted: Thu May 05, 2005 10:04 am
I vent like that all the time--but then I close the page and don't send the email and don't post the BB response.
Ira is right--you accomplish nothing FOR YOURSELF and YOUR goals with a letter of that kind. You say an ACH payment you scheduled didn't go through. Well, that's not the fault of CapitalOne, and CapitalOne has no way to know it wasn't YOUR fault unless you prove it to them. The Customer Service reps deal with liars and deadbeats all the time; give them some evidence that what you say is true.
I've found that when something goes wrong because of a mistake by MY bank, I can just call, get the bank to verify that what I say is true, and have the bank write a letter and call the Customer Service department of the other bank. It happens rarely, but when it happens it's pretty easy to correct. I've had that happen 2 or 3 times in my life. I think that for privacy concerns one bank or the other arranges a three-way conference call so they can get my permission to discuss my account with someone else.
One reason to do business online is that you can show when you scheduled your payment, what funds were available in your account--and if there's a problem in receiving it, usually your online bank will investigate, confirm your story--and if it is at fault, pay any late fees and interest charges resulting from its error...and apologize.
Finally, you say you had the funds in your account. But were the funds AVAILABLE on the day you scheduled the payment or not? I get checks all the time that are returned unpaid for "uncollected funds"--meaning the funds are in the account but haven't been cleared yet, so they can't be taken out yet. You say the ACH went through the next day. Possibly you ARE at fault for not verifying the funds were available when you sent that first payment. (Or possibly it is indeed the bank's fault--I've got no way to know.) In any case, sounds like CapitalOne gave you the benefit of the doubt and it wasn't Cap1's fault regardless of the reason. You're not questioning that the first ACH didn't reach Cap1, so why be angry at it?
Guest: CompJock24 Post subject: Recourse for Credit Card Computer Glitches Posted: Thu May 05, 2005 7:09 pm
Polonius wrote: I vent like that all the time--but then I close the page and don't send the email and don't post the BB response.
It gives readers something to look at and compare to if they are going through the same situation. And there's no wrong way or right way to vent...as long as you're not maliciously harming someone I don't see anything wrong with a few strong comments to get your point accross.
Polonius wrote: Ira is right--you accomplish nothing FOR YOURSELF and YOUR goals with a letter of that kind.
Why is my, or anyone elses, purpose and intent at question? That shouldn't even be the focus of this topic.
Polonius wrote: You say an ACH payment you scheduled didn't go through. Well, that's not the fault of CapitalOne, and CapitalOne has no way to know it wasn't YOUR fault unless you prove it to them. The Customer Service reps deal with liars and deadbeats all the time; give them some evidence that what you say is true.
Correct, it isn't the fault of Capital One. However, it isn't the fault of the consumer either, therefore we shouldn't be held responsible for an error in someone elses system.
Polonius wrote: Finally, you say you had the funds in your account. But were the funds AVAILABLE on the day you scheduled the payment or not? I get checks all the time that are returned unpaid for "uncollected funds"--meaning the funds are in the account but haven't been cleared yet, so they can't be taken out yet. You say the ACH went through the next day. Possibly you ARE at fault for not verifying the funds were available when you sent that first payment. (Or possibly it is indeed the bank's fault--I've got no way to know.)
Yes, all $28 worth of the transfer was available. I don't use my credit card unless I know I have the funds available that same day.
I'm not allowed to go below $1,000 in my checking account. Otherwise my bank charges me a monthly fee, so even if I only had $1,027 in there, the money would have still been covered without question.
Polonius wrote: In any case, sounds like CapitalOne gave you the benefit of the doubt and it wasn't Cap1's fault regardless of the reason.
I'm grateful Capital One gave me the benefit of the doubt, but it's a benefit in which I did not deserve. I haven't been charged anything at the present time, nor has anything negative affected my account status. I'm just worried that there's like a "strike" alongside my customer ID which will make it harder for me to receive "the best possible rates and level of service". You know? The thing that gets me annoyed the most is when they said,
"Please keep your account in good standing in the future to enable us to provide you with the best possible rates and level of service."
Who says my account ISN'T in good standing? That ACH computer glitch? That's the reason I even started this topic. Their smooth way of saying "You already mucked up once...do it again and we're going to brand your account!" but that's just it, I didn't do anything to deserve this kind warning.
Polonius wrote: You're not questioning that the first ACH didn't reach Cap1, so why be angry at it?
Actually, I already looked into the matter with them as soon as I saw the returned ACH note. They told me they had no idea what could have caused it. I paid the bill the next day and it went through. So what if my bank proves there was money in the account when I paid it? How are we, as consumers, going to know if that comment has been erased? That's all...
Guest: Polonius Credit Expert (100+ Posts) Post subject: Recourse for Credit Card Computer Glitches Posted: Fri May 06, 2005 1:05 am
OK--all understood; your latest reply gives some information that wasn't in the other posts. Sounds like your bank clearly was at fault.
As far as what the purpose of anything here is, it's pretty much what any of us makes of it. Someone posts something, we respond or not--and when we respond, we say whatever we feel like, about whatever comes to mind after reading the original post or one or more of the replies. There aren't any rules. And sometimes the posts and the replies aren't really directed to any particular person. You probably gathered Ira and I both feel that an angry hostile email accomplishes little, so we both tend to point that out when seeing one. Whether that matches your purpose or your liking doesn't matter much to me. I sort of advise against it so others considering sending such an email will consider my opinions about that approach too. No one has to agree with any of us.
Guest: CompJock24 Post subject: Recourse for Credit Card Computer Glitches Posted: Fri May 06, 2005 2:05 am
Readers, if you've made it this far in the thread, I would just like to highlight the key advice given here:
Polonius wrote: I've found that when something goes wrong because of a mistake by MY bank, I can just call, get the bank to verify that what I say is true, and have the bank write a letter and call the Customer Service department of the other bank. It happens rarely, but when it happens it's pretty easy to correct. I've had that happen 2 or 3 times in my life. I think that for privacy concerns one bank or the other arranges a three-way conference call so they can get my permission to discuss my account with someone else.
Polonius has the ideal solution as far as approaching this particular circumstance. However, IF for some reason, this solution fails, then it is time to try plan B (...a little more aggressive this time!).
Guest: CreditCardGuru Post subject: Recourse for Credit Card Computer Glitches Posted: Fri May 06, 2005 3:24 pm
I'd write them through the BBB or write them directly.....the more you pressure any CC company, push them into the hot seat, the more they are likely to help you. I'm the Credit Card Guru, YOU BET
Post subject: Activating or Cancelling A Credit Card Guest: rain Posted: Fri May 06, 2005 2:39 am
Does anyone know what happen when you get approved for a cc, they mail you the cc, but you don't activate it? Specifically, what happens to your credit score?
Guest: Polonius Credit Expert (100+ Posts) Post subject: Activating or Cancelling A Credit Card Posted: Fri May 06, 2005 10:30 am
I'm not sure about that. I've gotten a few cards that I decided not to activate--and they never appeared on any credit report. But I was always careful to call the issuers and tell them I was NOT going to activate.
Guest: credithelp Post subject: Activating or Cancelling A Credit Card Posted: Fri May 06, 2005 10:42 am
I would either activate it or call to cancel. Ive seen people not call or activate on a card with an annual fee. Before they knew it, they had a late fee on the account due to the annual fee. It was their fault since they threw the statement away thinking it was just another offer.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Activating or Cancelling A Credit Card Posted: Fri May 06, 2005 11:37 am
I have thrown a few cards in a drawer without activating. After a few years one was cancelled for non-activity. As I recall I even successfully made some on-line purchases with a non-activated card. This might mean that all the activation accomplishes is to confirm that the physical card has been received. Account activation may have nothing to do with card receipt. Would appreciate if somebody "in the business" could comment on this point.
Since I would never apply for a card that had an annual fee I can't comment on that point.
Guest: HeMissedOut Post subject: Activating or Cancelling A Credit Card Posted: Fri May 06, 2005 2:16 pm
Since I would never apply for a card that had an annual fee I can't comment on that point.
Even someone "in the business" won't be able to tell us about EVERY cc out there. From my own experience, I can say that Walmart, my CU Visa, Amex Blue Cash, and BofA Power Rewards reported before I even received the card.
Guest: CreditCardGuru Post subject: Activating or Cancelling A Credit Card Posted: Fri May 06, 2005 3:30 pm
If you don't want it then cancel it, activation just helps prevent the card from being stolen and used fraudulently, once they approve you, they will put it on the CRA's.
Post subject: Choosing a Card Based on Rewards Guest: rub2pennies Posted: Mon May 02, 2005 6:35 pm
Hello, I'm trying to decide between an AmEx and Chase credit card. The AmEx offers rewards on eating out, travelling and elsewhere and gives you Airline miles. This card is the AmEx True Earning SM card from CostcoWith this particular AmEx, you don't have to pay your balance in full every month. I was told that there are a lot of other cards out there(such as Chase) that offer better benefits than some AmEx cards. And, I also recall a link to an article about the alternatives. Can someone shed some light on this topic for me?
What I want is this:
A credit card with rewards such as cash back and free miles, as well as other possible rewards coupled with a low rate. My scores should be calculated around 670-690.
Guest: Polonius Credit Expert (100+ Posts) Post subject: Choosing a Card Based on Rewards Posted: Mon May 02, 2005 7:43 pm
Costco only accepts AmEx for purchases, so since all Costco purchases earn an extra 1% from AmEx as well as 2% from Costco itself (on its Executive membership), that's the way to go if you do a lot of shopping at Costco. The terms are True Cash Back-3% for eating out, 2% for traveling, 1% everywhere else, including at Costco, with no annual fee and free balance transfers. That's pretty good!
If you've got a better offer elsewhere, of course, go for it. But be sure to use the AmEx card to shop at Costco--that additional 1% can really add up.
Guest: Board Monitor Post subject: Choosing a Card Based on Rewards Posted: Tue May 03, 2005 12:39 pm
rub2pennies,
You should also consider browsing through our "Card Reports" section here:
http://www.cardratings.com/cardrepfr.html
I agree with Polonius regarding his Costco remarks. It's funny that Sam's Club only takes Discover.
Good luck and let us know how things turn out!
Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: CreditCardGuru Post subject: Choosing a Card Based on Rewards Posted: Fri May 06, 2005 3:35 pm
I prefer Chase as AMEX is harder to get as well as some places don't accept it in the USA....it's funny more places in Europe take it than here I'm the Credit Card Guru, YOU BET
Post subject: Bad Credit Report Due to Credit Card DebtGuest: badcredit Posted: Mon May 23, 2005 9:17 pm
I really need help with my credit report. I have total of 4 adverse accounts in my credit report as you see below. 1,#3, and #4(please see bottom side for my report) are already paid so there is no balance. #2 was charged off.
Here are my questions: a) Is there any good way to delete those 3 paid adverse accounts from my credit report? So that my credit score will improve? I really want this to be deleted from my credit report so please help me ways I can do to remove those paid items. b) Does “estimated date that this item will be removed” showing on the credit report can always change? I notice that from my old copy of credit report shows that some of those accounts estimated date that this item will be removed was like 5months earlier than it is showing on this credit report below which I just got it yesterday. c) For #2 (chaged off account), I notice that from my old credit report the balance is showing as $2,669 but credit report I got it yesterday shows balance of $2,784. Both of them, I got fulled it off from TransUnion. Do charge off account keep increasing its amount each month until I paid in full?
Those adverse accounts are credit cards that I made through my high school year and college year. Fact that I had a lack of knowledge about credit cards through out school year, this is now creating a problem. I graduated from a university about 5 month ago and now I am working full time at a company. Even though I can afford to have a credit card, since I have those adverse accounts listed in my credit report, I am not able to open up a credit card and not able to improve my credit score at all. Only thing I am hoping at this time is that I have been paying my college loan on time but repayment only started about 3month ago.
At this time I don’t have much money to pay off in full for item #2(charged off account)either so I just wanted to get some advice from you out there to improve my credit score. Also, please give me comments about my credit report below if you find anything odd or any advice would be thankful. Thank you.
=========================================
1) CAPITAL ONE BANK
4851 COX RD. #1203 GLEN ALLEN , VA 23060 (800) 955-7070
Balance: $0 Date Updated: 01/2005 High Balance: $154 Past Due: $0 Pay Status: >Charged Off as Bad Debt< Account Type: Revolving Account Responsibility: Individual Account Date Opened: 01/2000 Date Closed: 03/2004 Date Paid: 08/2004 Loan Type: Credit Card Remark: >Settled - less than full balance< Estimated date that this item will be removed: 02/2011
2) CITIBANK CBSD NA
PO BOX 6241 SIOUX FALLS , SD 57117-6241 Phone number not available
Balance: $2,784 Date Updated: 04/2005 High Balance: $0 Credit Limit: $2,000 Past Due: >$722< Pay Status: >Charged Off as Bad Debt< Account Type: Revolving Account Responsibility: Individual Account Date Opened: 01/2003 Date Closed: 11/2003 Loan Type: Credit Card Remark: Account information disputed by consumer Estimated date that this item will be removed: 10/2010
3) DISCOVER FINANCIAL SVC PO BOX 15316 WILMINGTON , DE 19850-5316 Phone number not available
Balance: $0 Date Updated: 05/2005 High Balance: $1,788 Credit Limit: $1,000 Past Due: $0 Pay Status: Paid or Paying as Agreed Account Type: Revolving Account Responsibility: Individual Account Date Opened: 05/1999 Date Closed: 10/2003 Date Paid: 08/2004 Loan Type: Credit Card Remark: Account closed by credit grantor >Maximum delinquency of 120+ days in 06/2004 for $167<
4) MBNA AMERICA
PO BOX 17054 WILMINGTON , DE 19884 (800) 421-2110
Balance: $0 Date Updated: 07/2004 High Balance: $2,177 Credit Limit: $1,500 Past Due: $0 Pay Status: Paid or Paying as Agreed Account Type: Revolving Account Responsibility: Individual Account Date Opened: 04/1999 Date Paid: 06/2004 Loan Type: Credit Card Remark: Account closed by credit grantor >Maximum delinquency of 120+ days in 02/2004 for $452<
Guest: p$ycho Post subject: Bad Credit Report Due to Credit Card Debt Posted: Mon May 23, 2005 10:36 pm
Yes, you can try to do a few things. The first is a "good will letter" where you ask them to delete the items because you were _______ (sick, in school, dog died, etc). They may or may not delete the items. It is common to delete late payments through this means and may make the account reflect in a more positive sense.
It is also possible that after a period of time they will just delete their records, and thus be unable to validate for a CR dispute. Keep that in mind. I paid off a charge off in late 2003 (just out of school then). I just submitted a dispute for the OC's transunion item and it got taken off. The CA is next, but it will happen soon I'm sure.
Quote:
b) Does “estimated date that this item will be removed” showing on the credit report can always change? I notice that from my old copy of credit report shows that some of those accounts estimated date that this item will be removed was like 5months earlier than it is showing on this credit report below which I just got it yesterday.
Be VERY careful they are not reaging your accounts. There is a definate close date that starts the clock. They may not change this. If they are, dispute it. I'm not sure about this but I'm fairly certain that you may also be able to collect damages if they do this constantly for the purposes of damaging your credit.
Quote:
At this time I don’t have much money to pay off in full for item #2(charged off account)either so I just wanted to get some advice from you out there to improve my credit score. Also, please give me comments about my credit report below if you find anything odd or any advice would be thankful. Thank you.
You can always go for a First Premier care or one of the secured cards. While paying off my old debts I am going to use that as a good tradeline. At this point though you can pretty well forget getting anything major.
Keep working on paying stuff off. If necessary, you can always look at a settlement. A charge off is a charge off. The sooner you have it paid, settled or otherwise the sooner you can put it past you. Don't let it end up being sent to collections and/or as a judgement. That ends up being a double or triple negative on one account. Don't ask how I know. You can also try to negotiate for deletion or something in with the settlement...
Guest: hdporter Post subject: Bad Credit Report Due to Credit Card Debt Posted: Tue May 24, 2005 2:11 am
I'm going to try to keep this short and sweet. But there's a bit of ground to cover here.
Re Citibank: A "charge off" doesn't mean that your liability to them isn't on their books any more. Thus, they're still adding interest to the account each month. (The charge off just means that they've offset the receivable with an entry that assumes you won't ever make good on it. But, they're still keeping track of it just in case you're motivated to pay it.
Re Estimated Dates of Removal: Unless a creditor is motivated to remove the adverse information (rarely done, but occasionally a possibility in the case of documented extreme illness or other serious life events ... prospects aren't strong for you), the negative data remains on your credit report for 7 years. That's the basis for the "estimates" shown. You can pretty much rely upon these dates.
Re Possibilities for Removal of Adverse Info: Not good. It's done on an exception basis for documented severe illness or other severe life events. "I was young and immature" won't cut it. Challenging the entries (as suggested by other poster) and hoping that the banks won't confirm the info has minimal chance. The outfits you were hooked up with dont miss a beat on this kind of thing (I'm speaking from some experience). Maybe 3 or 4 years down the road, but these are all relative recent adverse entries. You've got stronger avenues to work to restore your credit standing.
Re Restoring Your Credit Be patient. To be blunt (but not rude), you took a year or so to screw things up ... you can't expect lenders to look at you as a strong risk until there's decent evidence you've turned things around. Generally speaking, 2 years of spotless history seems to be the magic period after which lenders start getting interested in you again -- it's a rough guideline.
Your student loan stands as the best bet by which to begin restoring your credit. Don't miss a payment. Be scrupulous in getting your payment into them by the due date (shoot for 5 days before for good measure). Technically, you don't have to be absolutely stringent ... only 30+ delinquencies hit your credit report. But, take it from me the best approach is to be squeaky clean in performance. This is serious business and should be treated as such.
The Citibank charge off is a huge strike against you. That Capital One settlement for less than the outstanding balance doesn't put you in good stead either. Look at it this way ... if you stiffed a past creditor and never made it good, any prospective new lender is going to be pretty dubious you won't do the same thing to them if you find yourself in a bind down the road.
Now, I'm not going to tell you that you won't necessarily be unable to obtain credit at favorable terms any time in the foreseeable future with these entries on your report. However, your odds of doing so sometime in the next 4 years improve significantly if you repay the amounts originally due in fullj.
It looks like taking care of Capital One is a slam dunk ... a payment of $100, at most, will do it, no? If so, call them and tell them you're now able to settle in full. Ask them to send you a letter stating the amount necessary (don't handle this over the phone; I expect they'll urge you to simply authorize a check verbally -- don't). Settle the debt when you have the letter in hand, keeping careful documentation. Follow up with ALL 3 credit bureaus after 60 days to ensure your entry has been updated to PAID.and that the "Settled" notation is removed. Be confident before calling them that you're able to promptly settle this debt. They'll likely start hounding you again for repayment otherwise.
I'm not sure you grasp the situation with Citibank. I should think that their still billing you monthly despite the Charge-Off. (Going to a former school address?) You owe them $2784, of which $722 has been billed as payable and now is past due. As I said, interest (and substantial penalties) are being added to this account each month.
You really have to do something about this. I guarantee that over the next 2 years (and more) they're going to catch up with your current address and aggressively push for you to settle this account. $3K isn't something they're just going to turn their back on. It's going to be unpleasant at best. Plus, in time, they'll turn you over to a collection agency. That will add a separate Collection record to your report that is an even worse strike against you.
The good news is that you don't have to pay the whole thing off immediately to get this back to a good status. Just the Past Due of $722 (increasing with each passing month). However, if this progresses much longer, they will turn it over to a Colllection Agency and only payment in full will salvage the situation (to some degree). It's strongly in your interest to deal with this ASAP.
Call them. Tell them you want to take steps to bring this account current. Have a monthly payment in mind to get the $722 (+ monthly int. & penalties ... likely in neighborhood of $80-$90 now. You want to be as aggressive as possible ... a 6 mo. catch up will take around $200/mo. This would be ideal, but I'm sure not likely feasible. At the very most, you should take 12 mo, which will take something like $140/mo.
I'd expect this is tough. But we're talking just $700 of the $2700 you now owe them. You gotta bite the bullet and take the pain if you're going to get yourself squared away and not suffer your poor credit for the next 4-6 years.
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Ok, I've covered dealing with the past sins. Let's talk about how you get yourself reasonably creditworthy ... hopefull within 2-3 years. (If you had any illusion you'd be looking at modestly decent credit before then, it's time to get real.)
Now, mind you, "reasonably creditworthy" means that credit offers at something other than 18%+ are extended. In the mean time, you'll eventually gain access to cards for "impaired credits" that carry high rates. You need them to have the quickest route to getting yourself on track. But, you'll be a fool if you carry balances at that rate. Charge on them and pay every penny off each month. It's a tough discipline, but steel your mind for it.
At present, your student loan is your ace in the hole and, as noted, a stringent effort to not miss a payment is a MUST! Don't get sloppy even once. You want to offer the strongest evidence you've got your act together now.
You note 2 other "Satisfactory" credits. I'm assuming that those are closed and paid, and therefore not available to also reestablish your credit record. So, the critical thing to do is the pull together at least a $300 deposit that you can use to obtain a secured card.. (I know it's a tough task on top of those Citi payments. Consider a 2nd job for awhile, even if at minimum wage. You're serious about wanting to get yourself clean, right?)
The deal with a secured card is that you hand $x over to them and they give you a card with a credit line of $x. Unless they screw up and let you charge over that limit, they're fully covered. You need to hunt around for an issuer who doesn't rape you on fees. Ask in a separate post and I (or others) will suggest sources. (Check out the archive here, alternatively. The info's been discussed)
That'll give you a second credit report entry that will demonstrate you can handle the basics of a credit card (even if on the equivalent of "credit parole"). After a year or so, they'll likely convert the account to an unsecured one -- assuming you've gone to a reputable lender and kept your nose clean.
But, you've got a second Ace in the hole (and a pair ain't a bad set of hole cards!). Once you get caught up on those Citibank past due payments, you'll now be paying on an account with a current status. You score a home run at this point. You've shown great responsibility in cleaning things up AND you'll now establish yet another stream of current payment actiivity. BEST YET, after you've made 12 payments on the Citibank after you took care of the past due (keeping those payment pristinely current, of course), they WILL be willing to resinstate use of the account.
This is a golden opportunity and in your shoes I'd do whatever necessary to bring the account current at the quickest possible time.
Get this far and ask again about the best steps to take next. I've said enough for now
Post Subject: Minimum Finance Charge on a Credit Card StatementGuest: kimkimkim Posted: Tue May 24, 2005 12:55 pm
If a card says that it has a minimum finance charge of 50 cents, does that mean they charge you the 50 cents even if you pay off your balance in full each month? Or is it only charged if you maintain a balance?
I saw this mentioned with the Blue Cash from American Express card.
Guest: mannella Post subject: Minimum Finance Charge on a Credit Card Statement Posted: Tue May 24, 2005 12:59 pm
Not at all, you don't have to pay this amount if you pay your full balance by the due date, only if you carry a small balance that the calculated finance charge is less than .50 c then that is what they would charge you, at least .50 c.
Post subject: Higher APR on Your Credit Card Guest: shellm Posted: Tue May 24, 2005 6:40 am
If anyone can help me understand this, I would really appreciate their help. Over two years ago, we got a Discover card. It has a credit limit of $7200, and our balance is roughly $6800. Ever since we obtained this card, we have always paid on time, paying more than minimum each month.
Now, in an entirely different problem, my husband's ex-wife has been taking the children to the doctor, listing her address as the billing address (note we get no bills), and my husband's SSN as the responsible party. She then lets the bills sit around until they go into collection (bills we have no knowledge of) and then the collection agencies report against my husband's credit.
So, evidently there is a serious delinquency on his credit report (the only flaw mind you, we managed after much fighting and much time to fix his credit the last time his ex-wife did this) and Discover says basically that even though we have proven to be a reliable customer for TWO YEARS, because of this delinquency they have decided to raise our APR from 14.99 to 21.99. Can they legally do this? Now our payments are significantly higher and it's going to take forever to pay off the card now, as if it wasn't taking long enough to begin with. It doesn't seem fair when we have always paid on time. Who knows how long it will take to clear up this other mess. Help! What are our options here?
You have very little recourse...other than transferring the balance to another credit card. Wish I had better news. Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: hdporter Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 10:14 am
Well, transferring to a new, lower rate card is an out. But, given the black spot on your credit report from the medical delinquency(ies), finding a lower rate issuer who'll approve you for a card may be difficult.
Bottom line, you need to resolve the problems with your hubby's Ex and the medical billing. The credit reporting of these delinquencies/collections is what will repeatedly cause you problems until things are cleaned up.
You're a little sketchy on details, but I'm going to assume that your husband is actually responsible for the healthcare expense of his kids. (If it's the case that his Ex is, then the story's different ... I'm assuming he is, until told otherwise.)
Bottom line, no matter how difficult the situation, it's his responsibility to see that he obtains bills and pays them timely. The debt reporting is accurate and a credit bureau will continue to report the delinquency unless the creditor tells them to do otherwise.
So, the parties to deal with here are limited primarily to the Ex and, secondarily, the health care providers.
He needs to exercise any leverage he can with the Ex to get her to clean up her act. I realize that if there are no consequences to her, she may be poorly motivated to deal with this properly (and possibly intentionally taking satisfaction in the difficulty she's causing). All the same, she's at the root of this and the most efficient avenue by which to resolve the problem on an ongoing basis.
Short of that, there are two things to do. The first is to ensre that any provider with whom there's been a problem in a past directly bills your husband. This is less than an ideal approach, of course, since large providers tend to be bureaucratic and will simply go by the paperwork she submits ... plus it doesn't address when she uses a new provider.
The most important action you can take is to enroll with a credit monitoring agency. They'll notify you the minute someone reports adverse activity. You can then investigate and nip things, well ... not in the bud ... but before they cause major headaches.
With prompt settlement by you, there's a strong chance that you can get the provider to remove the reported adverse information given the underlying explanation. This gives you a means by which you can keep on top of your credit record and keep it as clean as possible.
However, under the "universal default" provisions that most credit card firms stipulate in their agreements, the minute the adverse info is reported the penalty rates will be triggered ... and subsequent removal of the adverse entry won't automatically restore your lower rate.
Each time this happens and a penalty rate in invoked, you're going to have to document the situation fully to the credit card firm after you've confirmed the entry has been cleared from your report. There are no guarantees, and you'll likely have to negotiate your way through their maze to find the person who's ultimately in the position to help you. But this is the only recourse you have aside from obtaining a new card every tme this happens and transferring balances (and only after you've cleaned up your credit report once again).
When it comes down to it, his Ex's cooperation is the real key. Good luck!
Guest: shellm Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 10:38 am
Thanks to both of you for the replies and the good advice. Here's the problem with staying on top of the medical bills. Divorce states that my husband is responsible for 50% of medical costs. Also states she must send us a bill; then he must send "HER" a check (not the provider). We live over 500 miles away from her. She goes through the cycle like this.
She takes them to the doctor. She never tell us they even went to the doctor. She never sends us any bills. She neglects the bills. The bills go to a collection agency, Collection agency calls HER for payment. She puts them off, agrees to payments, but never follows through, etc. THEN...miraculously it shows up on my husband's credit. We call the creditor and end up having to pay the entire amount plus late fees. They mark the collection "PAID", but won't remove it from the credit report.
Then, guess what she does after going through all this? She changes their doctor!
Is she not committing fraud here? Can we not press some kind of charges against her for constantly destroying his credit and costing us more money?
She is evil!
Guest: HJMo Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 11:28 am
You can apply for a credit card with lower rate in your name since the deliquencies are in your husband's report, not yours. Then, transfer the balance.
Guest: hdporter Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 11:33 am
I really feel for you guys.
I get the feeling that the fallback position is simply to enroll in credit monitoring so that you're aware of adverse reporting when it happens and can immediately address it.
It's definitely worth consulting a divorce lawyer to see if you have any recourse with the Ex, or if there's a basis to obtain amendment of the divorce agreement that would resolve the problem to at least some extent. I don't have experience from which to suggest what the case might be.
Concerning the continued reporting of the collections: The original creditor has the discretion to clear any reporting. Mind you, I'm talking about dealing with the HC provider, not their collection agency (where requests will fall on deaf ears).
Most medical providers aren't out to ruin your credit. They just want their money. Of course, since they've lost some of it to the collection agency in most cases, they aren't always the most symphathetic ears you'll find.
Be patient and explore every avenue you can find to have your request for a clear considered by the provider. When you're talking large practices and hospitals, prospects are daunting.
Start by contacting them, simply explain that you have an inquriy concerning a reported collection, and ask for a manager's name you can send it to. Say that you're including backup documentation and wish to submit it in writing rather than verbally discuss it initially.
Send your request, along with backup correspondence and a thorough (but straightforward) explanation of your circumstances. I recommend having a divorce lawyer provide a simple statement affirming those circumstances.that you submit with each request. Indicate that you'll follow the letter with a call to discuss the matter in 10 days, or that they may contact you. Follow up timely and show them every courtesy.
Again, they don't have any desire to screw you over (most times). Anybody with common sense should be able to grasp your situation and be willing to accomodate you. Until these adverse entries are removed, obtaining any credit credit cards at reasonable rates will be unlikely (much less negotiating with current lenders restoring your accounts to a standard rate).
Guest: Hunmtastr1 Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 12:17 pm
I feel for you also! I have been there, but learned some things also.
First, you can not be held liable for debt incurred by others. Second, it is fraud for your ex to list you as a responsible party, you are not married any longer!.( the doctor cannot hold you liable for a debt you did not approve) Third, You are liable only for the receipts your ex provides to you in the time frame listed in your decree. Thsi has stood up in court!!!
You should challenge the credit information on the basis you are not responsible as you did not request services.
Guest: shellm Post subject: Higher APR on Your Credit Card Posted: Tue May 24, 2005 12:59 pm
Thanks so much for all the advice. We are going to fight this, and her, tooth and nail. It's just not fair for her to continue to do this to us. The first time she did it, it took over a year to get the adverse marks off. We should have addressed the entire situation then instead of waiting for it to happen again. I did think I had it covered, though as I called two different doctors the children had seen and made them aware of the situation. They checked the records to make sure that his SSN was not on their records. I had no idea she would change doctors. Of course when you are so delinquent with an office, why would you go back? What a hassle! I appreciate all the info!!!
Getting Out of Credit Card Debt With Limited Income
Post subject: Getting Out of Credit Card Debt With Limited Income Guest: awalsh Posted: Mon May 23, 2005 2:20 pm
hi folks, i am new to this forum. be gentle with me as i have been quite the idiot regarding credit card debts and have no shortage of shame and embarrassment about the situation. but now i am coming to grips and turning it around. ok:
i'm broke and have been for about 5 years (I guess "poor" is a better description at this point)
i have about 2300 owed to Chase bank cards, which was in collections for a long time, and is now at a law firm because i never dealt with it while it was in collections (major denial obviously). i called the law firm people today after they called my landlord looking for me (!!). They said I had until tonight to pay them the entire amount in full or they would recommend me for legal action, ask me to appear in court, etc. they said they do not do installment plans, etc, as they are a law firm, not a collections agency. they said they would only give me today and no longer. * obviously, this is serious - but what will happen if i cant come up with money today? I have been trying all day with no luck to figure out getting it together, and need a few more days to make a plan that will make sense. Advice/wisdom about dealing with these firms?
* my other account is with CitiCards. I owe them 1500. In a 3rd party collections agency. Called them today and they told me that I could have a settlement of $1100 if I could pay them half of it today and half next month. Now, thats a lot for me and will mean that I wont be able to pay some of my other bills. But I would like to take the settlement if I can because it saves me $$. Advice? Do you think if I refused the settlement now I would have a shot at getting one later?
Thanks folks, for anyone who slogged through this posting with me...I look forward to any kind advice you can give.
Guest: hdporter Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 9:35 am
One question that needs to be answered in order to give the best response:
If these two debts were satisfied in some fashion today, what would your general financial situation be. Assume that credit of most reasonable types will be unavailable to you for the next couple of years.
Do you have sufficient income to live comfortably (likely frugally)? Or is it the case that even when ignoring these debts you're constantly "robbing Peter to pay Paul" and there's a good chance you'll be in a real bind the next time a major expense comes barrelling down the road?
The answer drives how best to resolve these debts.
Guest: awalsh Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 10:01 am
If these 2 debts were resolved today, I would be in the position to barely cover my expenses. No room for emergencies, etc. I live extremely frugally: no car (I bike everywhere) very low rent with utilities included, limited eating out, thrift store clothing only, etc - I'm kind of a master at not spending $$. But I am an artist and a grad student, and I do freelance design work for a living which is an unstable form of income, hence the crisis-to-crisis mentality. But I need the flexibility so I can keep my art career going forward, which will eventually make me more money when I ahve my masters and am eligible for teaching jobs. The other piece of this is that I have debt to the IRS which I am paying back $350 per month - that's where all my money goes (that's more than my rent!!) I have been somewhat consistent with that (but I miss a payment here and there) and have begged to lower the monthly payments but they won't let me.
Guest: hdporter Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 11:14 am
Ok ... you're in a tight situation. It's notable that you aren't questioning whether you should actually settle these debts and it's apparent you really would prefer to take care of these to everyone's satisfaction. That's commendable and an excellent posture from which to approach this.
I'll first touch on settlement on terms that are acceptable to the lenders. Then I'll cover some ground on other, less desirable, options.
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Let's look at Citibank. If you decide that you can handle the $1100 repayment in 2 installments, I strongly urge you to follow with a 3rd payment of $400 (or 2 more of $200, if necessary). The impact on future credit availability of a partial settlement vs. full settlement is too great not to stretch for the additional $400. Be resolute in this ... it'll pay handsomely down the road as you restore your credit record.
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Chase is sticky. I honestly get the impression that you certainly don't have the resources to settle this in full now. Unless you have some generous benefactor at hand, I don't advise hitting up a parent or someone else who would only extend the money with great hesitation and with whom your relationship would be severely impaired if you failed to make good on repayment in an acceptable and timely manner.
You ask about possible enforcement action if you don't pay now. It's hard to say if they will proceed, but I really doubt it. I expect they'll be content to hound you for another year and leave it at that, with a major black spot on your credit record. (The debt might be subsequently sold at $.10 on the $1, or less, to another collector who'll take up the houding for as long as another year.)
The reason I doubt they'd take it to court to obtain a judgement against you (a judgement means that they're now authorized to take additional measures to secure repayment, such as garnishment of wages) is that the costs of doing so are prohibitive relative to the amount outstanding (although ultimately you'd bear the cost). And, frankly, in your case recoving the debt even with a judgement in hand anytime soon is doubtful, since they don't have a fixed employer to deal with and I doubt their interested in conducting a street sale of your possessions
But, for some peace of mind, I'm not suggesting you stiff them out right. Call them and simply say that you don't have the resources from which to settle the obligation in full. If they wish to obtain a judgement, you can't prevent them. However, your circumstances are such that there's little opportunity for them to enforce the judgement. (At this point, simply politely listen to what they say and don't argue or even engage in further discussion on the subject of legal action.)
Acknowledge that you understand what you've been told. Go on to say that ideally you'd really like to ultimately satisfy the debt. Tell them that no matter how things proceed, you're going to send an initial partial payment and will continue to remit monthly payments in the same amount so long as any legal action is forestalled.
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Have in mind a monthly payment amount that's as aggressive as possible, but that you're confident you can make with certainty each and every month on time. A 4 month repayment would be ideal, 6 still fine. At most, a 12 month term should be allowed. If you can't handle that with complete confidence you'll come through spotlessly, than it's time to consider the last option outlined below.
I'll note that you shouldn't negotiate with them on the amount. Have a firm and appropriate number in mind and simply tell them that you're putting a check in the mail for that amount TODAY, no matter the outcome of the call. They'll likely tell you again they can't accept installments. But tell them that it's the best you can manage and you really are intent on doing what you can to make a good faith effort to settle the debt that's within your means. Suggest that if they choose not to deposit the checks, that's their decision. Also say that if at a later date you have the resources the pay off the unpaid balance in a lump sum, you'll do so.
Look, it's quite possible that you'll start to make payments and they'll cash them but still initiate legal actiion (obtain a judgement). Stop payemtns, but don't look at what's been paid to date as money down the tubes. Take satisfaction that you made a true good faith effort and that your integrity in the matter is intact. Walk away from the situation, politely hang up when they call, and put your mind at rest.
I can't say that this truly is your best avenue, but it's what I'd do in your shoes rather than avoid dealing with a difficult situation entirely or putting yourself in more problematic straights by settling the debt now with funds that you don't have.
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It's time to be realistic. If you can settle these debts along the lines I've suggested, it's very much in your interest to do so. However, if you can't reasonably deal with both of these in this manner, don't resort to half measures. You only buy yourself continuing headaches with no constructive means by which to resolve them. You'll be miserable.
I'm suggesting that if you can't proceed with an action plan through which you can reliability settle these debts in a reasonable timeframe, that you walk from them. Enforcement of the Chase debt is unlikely, and there's no longer Debtor's Prison. You're going to be excluded from unsecured credit sources for at least the next 5 years, and possibly longer. But, sticking to cash in your case might not be a bad thing (you'll be able to eventually obtain a secured credit card for handle situations where cash isn't an option).
On $4K of debt, the idea of filing bankruptcy doesn't merit consideration ... unless creditors are absolutely relentless in pursuing this debt. Keep in mind that you can politely hang up on collection calls, toss letters in the trash, and turn the phone ringer off when feasible. Not the ideal way to go, but ackowledge that you're the one who put yourself in this situation (which it's clear you indeed to, to your credit).
If you were to pursue bankruptcy, I'm not clear on details. New laws make Cp. 7 (which would totally wipe debts) much less available. More people will be required to file Cp. 13, requiring that the debts be repaid over 3-5 years ... with collection and enforecement to resume in the event of failure to make these payments timely. (However, without steady employment, if you're eligible to file I expect that you'd still qualify for Cp. 7)
Follow with updates and I'm sure you'll receive further guidance.
Guest: HJMo Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 11:48 am
Check out CreditNet's forum. It has extensive discussion on dealing with collection agency.
Guest: awalsh Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 3:20 pm
wow, what an incredible forum. I really appreciate the long and thoughtful response, hdporter, and the link reference, HJMo. I'll start chewing on this...
hdporter, you said:
"Let's look at Citibank. If you decide that you can handle the $1100 repayment in 2 installments, I strongly urge you to follow with a 3rd payment of $400 (or 2 more of $200, if necessary). The impact on future credit availability of a partial settlement vs. full settlement is too great not to stretch for the additional $400. Be resolute in this ... it'll pay handsomely down the road as you restore your credit record."
Do you mean that if I settle, my credit rating won't be as good as if I pay the whole thing without settling? Just not sure exactly what you mean by "impact on future credit availability of a partial settlement vs. full settlement." My thinking about this today is to not do the 2 payments, because as I've been thinking about it I realize that it will be a huge hardship to make the 2 payments and will mean not being able to pay some of my current bills for these 2 months, which simply doesn't make sense. I already gave them 2 post-dated checks for the 2 payments. I am going to call and insist that they not put the checks through, and that I don't want the settlement and I want to resume a payment plan in smaller amounts. Any thoughts on how I can guarantee them not depositing the checks?
That's all. Thanks again.
Guest: PHP05 Post subject: Getting Out of Credit Card Debt With Limited Income Posted: Tue May 24, 2005 4:08 pm
