How to Lower Credit Card APR
Author: steppin
Posted: Fri Oct 07, 2005 1:46 pm
Post subject: Chase refuses to lower APR, won't escalate call. Why not?
I'm really steamed about this. I hope someone has some constructive suggestions.
After four+ years of 11.5% fixed, in April Chase changed my rate to a variable and hiked it a quarter point every month or so, till it was up to 13.49%. So last month I called to ask for a reduction. The guy I spoke to said the best he could do was to knock off a half-point. Then he tried to sell me on two different balance transfer offers. When I said "no thanks," he said "Call back after the first of next month; there may be better offers available then."
So this morning I rang them and asked again, and this is what I was told:
"Your account is not eligible for rate reduction.
No, I can't transfer you to a credit analyst.
We do an account review every month or two, and your account must meet certain criteria to be eligible.
No, I can't tell you what those criteria are."
WTF?? I did get bumped up to her supervisor, who repeated the same song-and-dance. My account is not eligible because it doesn't meet certain criteria, he can't tell me what they are, and he can't transfer me to a credit analyst. The only satisfaction I could get was a "correspondence address." When pressed for a reason, he said a possible reason might be that I might have "a large amount of unused credit elsewhere." He also alleged a late payment (all three credit reports show perfect payment for past 7 years on this account). "When?" I asked. After a VERY long pause, he says "In 2001."
Now, here are the numbers: I currently have a 5,500 CL with Chase. I have been paying down the balance for the past year or so, and currently owe only about 300. I have three other cards. Total CL: around 18,000. Total owed: around 4,800 (down from nearly 14,000 a year ago). As of late August/early Sept, FICOs were 663/666/711 (TU being the whack high score). Inquiries show that Chase has been doing soft hits (A/R) nearly every month.
As far as I can tell, improving my credit has made me unattractive to Chase. Here I was thinking that bringing my utilization to around 28% was going to make me a more desirable customer in the CC's eyes, but apparently I was wrong. I wonder, though, what happened over the course of one month to change their minds--they were happy to talk to me 30 days ago, but not any more. I seriously expected to get two or three different offers, just like last month, and instead I got treated like a leper.
What do you think is going on here? Should I go ahead and write a letter? I don't want to close the account because it's one of my older trade lines and makes up about 30% of my total CL. What to do?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: JaneiR36
Posted: Fri Oct 07, 2005 2:20 pm
Post subject: How to Lower Credit Card APR
It's their company, they can do whatever they want with it. No, I wouldn't write a letter.
Shop around for more credit cards if you so desire. Sometimes you can even get a more attractive one with the same company! But no matter what, keep this card open. Like you said, they make up a good chunk of your credit limit and that keeps your FICO score up. The more unused credit vs. total credit line you have, the higher your FICO score is. Besides, that same card could have another offer down the line that you may wish to take advantage of.
Just keep the account, use them when they benefit you, and get another one to use more actively if you don't like what they have to offer!
Author: Polonius
Posted: Fri Oct 07, 2005 3:14 pm
Post subject: How to Lower Credit Card APR
But you just got a rate reduction of .5% last month! That's probably why no one will talk to you about another one right now. Sounds like your rate is indexed to the prime rate, which has been rising in quarter point jumps lately.
Just like some banks let you have a credit limit increase only every six months, some banks let you have a rate decrease only now and then as well. No harm in trying again of course.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Oct 07, 2005 1:46 pm
Post subject: Chase refuses to lower APR, won't escalate call. Why not?
I'm really steamed about this. I hope someone has some constructive suggestions.
After four+ years of 11.5% fixed, in April Chase changed my rate to a variable and hiked it a quarter point every month or so, till it was up to 13.49%. So last month I called to ask for a reduction. The guy I spoke to said the best he could do was to knock off a half-point. Then he tried to sell me on two different balance transfer offers. When I said "no thanks," he said "Call back after the first of next month; there may be better offers available then."
So this morning I rang them and asked again, and this is what I was told:
"Your account is not eligible for rate reduction.
No, I can't transfer you to a credit analyst.
We do an account review every month or two, and your account must meet certain criteria to be eligible.
No, I can't tell you what those criteria are."
WTF?? I did get bumped up to her supervisor, who repeated the same song-and-dance. My account is not eligible because it doesn't meet certain criteria, he can't tell me what they are, and he can't transfer me to a credit analyst. The only satisfaction I could get was a "correspondence address." When pressed for a reason, he said a possible reason might be that I might have "a large amount of unused credit elsewhere." He also alleged a late payment (all three credit reports show perfect payment for past 7 years on this account). "When?" I asked. After a VERY long pause, he says "In 2001."
Now, here are the numbers: I currently have a 5,500 CL with Chase. I have been paying down the balance for the past year or so, and currently owe only about 300. I have three other cards. Total CL: around 18,000. Total owed: around 4,800 (down from nearly 14,000 a year ago). As of late August/early Sept, FICOs were 663/666/711 (TU being the whack high score). Inquiries show that Chase has been doing soft hits (A/R) nearly every month.
As far as I can tell, improving my credit has made me unattractive to Chase. Here I was thinking that bringing my utilization to around 28% was going to make me a more desirable customer in the CC's eyes, but apparently I was wrong. I wonder, though, what happened over the course of one month to change their minds--they were happy to talk to me 30 days ago, but not any more. I seriously expected to get two or three different offers, just like last month, and instead I got treated like a leper.
What do you think is going on here? Should I go ahead and write a letter? I don't want to close the account because it's one of my older trade lines and makes up about 30% of my total CL. What to do?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: JaneiR36
Posted: Fri Oct 07, 2005 2:20 pm
Post subject: How to Lower Credit Card APR
It's their company, they can do whatever they want with it. No, I wouldn't write a letter.
Shop around for more credit cards if you so desire. Sometimes you can even get a more attractive one with the same company! But no matter what, keep this card open. Like you said, they make up a good chunk of your credit limit and that keeps your FICO score up. The more unused credit vs. total credit line you have, the higher your FICO score is. Besides, that same card could have another offer down the line that you may wish to take advantage of.
Just keep the account, use them when they benefit you, and get another one to use more actively if you don't like what they have to offer!
Author: Polonius
Posted: Fri Oct 07, 2005 3:14 pm
Post subject: How to Lower Credit Card APR
But you just got a rate reduction of .5% last month! That's probably why no one will talk to you about another one right now. Sounds like your rate is indexed to the prime rate, which has been rising in quarter point jumps lately.
Just like some banks let you have a credit limit increase only every six months, some banks let you have a rate decrease only now and then as well. No harm in trying again of course.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:15 PM
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