Annual Percentage Increase on Credit Card
Author: Fehercica
Posted: Fri Apr 21, 2006 8:55 pm
Post subject: Annual % Increase
I had a credit card with Amazon.com. Owed by Chase Bank. My credit limit was $9500.- and the Rate 16.74% My debt was in February $4400.- In the same month I paid $ 2486. March Balance was 2287.- I paid $287.- This month I received a notice that my Annual % rate from 16.74% was increase to 26.74%
I called and asked the reason for it. I was told because my balance was too high. My credit score is 775.
I dont understand why the percentage rate was not raised when the balance was $4400.-?
The ratio of debt to credit limit in April is 50% less than it was in February.
Any one has any explanation?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Fri Apr 21, 2006 9:02 pm
Post subject:
Call again and ask for a specific reason. Ask to speak with a credit analyst. If this was a raise directed against you personally (and not something done for everyone with that kind of credit card), Chase has to tell you the reason in writing and tell you what bureau was used to pull your credit. You're entitled to a free report from that bureau.
There are a lot of possibilities. One is that it was simply time for an annual review. Another is that there are errorsi in your credit report. A third possibility is that you're leaving something out--were you late in making those payments or have you been late with other Chase cards?
Or it's simply a bonehead move at random for no sensible reason. That happens.
One thing is for sure--the reason you were given is bogus. You feel that way--and I agree with you.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Alexis Rios
Posted: Sat Apr 22, 2006 12:33 pm
Post subject: Re: Annual % Increase
[quote="Fehercica"]I had a credit card with Amazon.com. Owed by Chase Bank. My credit limit was $9500.- and the Rate 16.74% My debt was in February $4400.- In the same month I paid $ 2486. March Balance was 2287.- I paid $287.- This month I received a notice that my Annual % rate from 16.74% was increase to 26.74%
I called and asked the reason for it. I was told because my balance was too high. My credit score is 775.
I dont understand why the percentage rate was not raised when the balance was $4400.-?
The ratio of debt to credit limit in April is 50% less than it was in February.
Any one has any explanation?[/quote]
You should review your credit reports just in case if you have other credit cards with balance. If this account is the only one w/balance call to the credit dept. for a reconsideration.
Author: fenster
Posted: Sat Apr 22, 2006 1:42 pm
Post subject: Annual Percentage Increase on Credit Card
What you describe happened to a big percentage of Amazon cardholders amidst the Chase takeover. The good news is it’s nothing you can’t fix, it happened to me.
You’ve to call Amazon Chase and complain, they’ll connect you to a very rude person in a so called “underwriting” section. They’ll give you a lame high utilization reason for the hike. And you’ll tell them you’re having none of that big, steamy pile of poo.
Then they’ll ask to pull a report, don’t worry, it’ll be soft. And if your counterargument is reflected in your report, they’ll ask you to wait 2 billing cycles before your rate is back to where it was. I waited two billing cycles too, but luckily my balance was close to 0.
One more thing, here's a trick they play: they'll say "but sir you have ~ $30000 in outstanding debt." You've to counter, yes, but that's only 15 or 20% of my overall available.
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 Apr 21, 2006 8:55 pm
Post subject: Annual % Increase
I had a credit card with Amazon.com. Owed by Chase Bank. My credit limit was $9500.- and the Rate 16.74% My debt was in February $4400.- In the same month I paid $ 2486. March Balance was 2287.- I paid $287.- This month I received a notice that my Annual % rate from 16.74% was increase to 26.74%
I called and asked the reason for it. I was told because my balance was too high. My credit score is 775.
I dont understand why the percentage rate was not raised when the balance was $4400.-?
The ratio of debt to credit limit in April is 50% less than it was in February.
Any one has any explanation?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Fri Apr 21, 2006 9:02 pm
Post subject:
Call again and ask for a specific reason. Ask to speak with a credit analyst. If this was a raise directed against you personally (and not something done for everyone with that kind of credit card), Chase has to tell you the reason in writing and tell you what bureau was used to pull your credit. You're entitled to a free report from that bureau.
There are a lot of possibilities. One is that it was simply time for an annual review. Another is that there are errorsi in your credit report. A third possibility is that you're leaving something out--were you late in making those payments or have you been late with other Chase cards?
Or it's simply a bonehead move at random for no sensible reason. That happens.
One thing is for sure--the reason you were given is bogus. You feel that way--and I agree with you.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Alexis Rios
Posted: Sat Apr 22, 2006 12:33 pm
Post subject: Re: Annual % Increase
[quote="Fehercica"]I had a credit card with Amazon.com. Owed by Chase Bank. My credit limit was $9500.- and the Rate 16.74% My debt was in February $4400.- In the same month I paid $ 2486. March Balance was 2287.- I paid $287.- This month I received a notice that my Annual % rate from 16.74% was increase to 26.74%
I called and asked the reason for it. I was told because my balance was too high. My credit score is 775.
I dont understand why the percentage rate was not raised when the balance was $4400.-?
The ratio of debt to credit limit in April is 50% less than it was in February.
Any one has any explanation?[/quote]
You should review your credit reports just in case if you have other credit cards with balance. If this account is the only one w/balance call to the credit dept. for a reconsideration.
Author: fenster
Posted: Sat Apr 22, 2006 1:42 pm
Post subject: Annual Percentage Increase on Credit Card
What you describe happened to a big percentage of Amazon cardholders amidst the Chase takeover. The good news is it’s nothing you can’t fix, it happened to me.
You’ve to call Amazon Chase and complain, they’ll connect you to a very rude person in a so called “underwriting” section. They’ll give you a lame high utilization reason for the hike. And you’ll tell them you’re having none of that big, steamy pile of poo.
Then they’ll ask to pull a report, don’t worry, it’ll be soft. And if your counterargument is reflected in your report, they’ll ask you to wait 2 billing cycles before your rate is back to where it was. I waited two billing cycles too, but luckily my balance was close to 0.
One more thing, here's a trick they play: they'll say "but sir you have ~ $30000 in outstanding debt." You've to counter, yes, but that's only 15 or 20% of my overall available.
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 12:44 AM
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