Credit Tips: Late Fees on Credit Cards

Posted On: April 1, 2006

Author: frank
Posted: Sun Sep 25, 2005 8:49 pm
Post subject: Cancel a 13 year old card?

I have a BOA Platinum Card that I paid late twice in a row, just a few days each time. Each time was a mistake I made paying on the internet. I had late fees and they would’t take them down, so I canceled the account each time. I emailed them after, and they took them down both times and asked me back. They didn’t tell me they raised the rate to 30.49% or I wouldn’t have gone back. Now they say there is no way they can lower it. I have been paying in full each month since this anyway but want an option of not without getting screwed.

It is funny they canceled my account when I requested very quickly, but then took the fees down after. Why not care enough before but then care enough to get me back?

If I cancel a card that is so old will that bring my 780 score down? My only other card is only a few years old and I have no other debt.

Will these 5 day lates or the “default” rate info get to other credit card company’s and effect my terms when I apply? My CL is 18K, will I be able to get this somewhere else?

I realize in the scheme of things this isn’t a big problem, I just think that 30% is kind of high for a long term customer with a high score, and don’t like to take things sitting down.

Author: NightStar
Posted: Sun Sep 25, 2005 9:16 pm
Post subject: Late Fees on Credit Cards

Make on time payments for a 6 months then write in letter requesting that they forgive the lates.

Try to save the account, 13 years is good credit history. Even if they don’t forgive the lates, they will only remain 7 years on file. Just keep the card open that long and they will expire and it will go back to good reporting.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Author: frank
Posted: Sun Sep 25, 2005 9:40 pm
Post subject: Late Fees on Credit Cards

My understading is that if they are only a few days late they are only “internal” and won’t be reported? They need to be over 30 to hit the credit report. But would the fact that I have a default rate get to other credit card companies and effect my rates and getting approved somewhere else?

I think I will not cancel again, just not use it. I think they will let me go this time. I am lucky that I am not held hostage.

Author: maddybeagle
Posted: Sun Sep 25, 2005 9:53 pm
Post subject:

I would just keep it open and not use it or pay off every month. I wouldnt close because you are angry with them. It is your oldest account so good to keep. You did say they didnt report the lateness on your credit report? so it sounds like you are ok. I dont believe that other credit card companies can see what your rate is off you credit report. It would only say if you were delinquent and that would drive your other accounts to higher rates.

Author: NightStar
Posted: Mon Sep 26, 2005 7:54 am
Post subject: Late Fees on Credit Cards

The due date is the end of the 30 day grace period, if you are beyond that due date then you are over 30 days late.

Other creditors won’t know what your interest rate is, just make sure that you don’t carry a balance on this card if you can help it due to the high interest. Keep asking the creditor every 6 months for a lower interest rate. Point out to them how long you have been a customer with them.

You definitly don’t want to close the account with a balance on it, that will look negative to other lenders which could that way result in other cards raising your interest rate.

The late listings themselves can cause other creditors to increase interest rates, just going to have to play it by ear, see if there are lates, then ask the creditor for forgiveness on the lates, that they please remove them off of the credit report.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Author: frank
Posted: Mon Sep 26, 2005 9:02 am
Post subject: Late Fees on Credit Cards

“The due date is the end of the 30 day grace period, if you are beyond that due date then you are over 30 days late.”

Nightstar: Are you sure about that? a very important item, just in general. Most grace periods are now 20 days so in most cased it won’t apply unless you are over 10. But I still think that you need to be 30 days past due date for them to report it as a 30 day late. I am a (fairly new) mortgage loan officer, so this would interest me.

They are not on my credit report. They were not even 30 days late if you take billing date into account. And if I was going to cancel it would be all paid in full.

I think you are all right about not canceling, it is just that in the past threatening to cancel is the only way to get anything out of anyone. But I only threaten when I mean it and in this case my credit score would be effected to much to make it worth it.

Thank you, these boards are the most consumer friendly of them all.