Can a Credit Card Company Increase the Rate Because of Higher Utilization?
Author: lala
Posted: Fri Jun 30, 2006 12:40 am
Post subject: Rate-jacking on Chase
Has anyone been rate-jacked for utilizing less than 50% on a chase card? I did a BT to Chase two months ago, got up to about 45%, and then got silly and made purchases on the card, which brought up the utilization to just under 50%. Is there any danger?
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Author: davej
Posted: Fri Jun 30, 2006 2:59 am
Post subject:
Quote:
Has anyone been rate-jacked for utilizing less than 50% on a chase card?
I guess you meant 'more than'... Anyway, as long as you stay under 50% you should not worry about ratejacking, even though your FICO score will be dinged a bit.
Author: Board Monitor
Posted: Fri Jun 30, 2006 9:51 am
Post subject:
Why would you be rate jacked by Chase for carrying over 50% on THEIR card? Am I missing something here?
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Author: Evilbunny
Posted: Fri Jun 30, 2006 1:13 pm
Post subject: Can a Credit Card Company Increase the Rate Because of Higher Utilization?
You wouldnt. but if you are utilizing that much on other credit cards as well, then you may have your apr increased
Author: jlrdc909
Posted: Mon Jul 03, 2006 6:40 am
Post subject: Can a Credit Card Company Increase the Rate Because of Higher Utilization?
AAAAHHHHH, we are back to that lovely entity called Chase.
Chase reminds me of the mean school teacher looking at you from the back of the classroom with a ruler in hand, if you talk to the kid next to you, WHACK.
I have yet to figure out the lending practices of this bank, they are really hard to figure out, it seems like if you use 40% or more on their card OR any other card you will be rate jacked. I had a friend who had the United Airlines card, she spent thousands of dollars a year on this card, but never paid interest, you got the dreaded letter in her mailbox stating they were closing the account because of her spending habits, etc. No real reason stated, my guess is she never paid them one drop in interest and was gaining miles after miles so they kicked her to the curb.
While we all have rights, remember the bank is lending to us, we are at their mercy
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Board Monitor
Posted: Mon Jul 03, 2006 8:34 am
Post subject:
Quote:
use 40% or more on their card
Interesting. Do you have any examples of this happening? I find it hard to believe.
I also find it hard to believe that they cancelled your friend's card just b/c she PIF every month and racked up miles. The card companies still make money off of you if you PIF due to merchant fees.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
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 Jun 30, 2006 12:40 am
Post subject: Rate-jacking on Chase
Has anyone been rate-jacked for utilizing less than 50% on a chase card? I did a BT to Chase two months ago, got up to about 45%, and then got silly and made purchases on the card, which brought up the utilization to just under 50%. Is there any danger?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: davej
Posted: Fri Jun 30, 2006 2:59 am
Post subject:
Quote:
Has anyone been rate-jacked for utilizing less than 50% on a chase card?
I guess you meant 'more than'... Anyway, as long as you stay under 50% you should not worry about ratejacking, even though your FICO score will be dinged a bit.
Author: Board Monitor
Posted: Fri Jun 30, 2006 9:51 am
Post subject:
Why would you be rate jacked by Chase for carrying over 50% on THEIR card? Am I missing something here?
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Author: Evilbunny
Posted: Fri Jun 30, 2006 1:13 pm
Post subject: Can a Credit Card Company Increase the Rate Because of Higher Utilization?
You wouldnt. but if you are utilizing that much on other credit cards as well, then you may have your apr increased
Author: jlrdc909
Posted: Mon Jul 03, 2006 6:40 am
Post subject: Can a Credit Card Company Increase the Rate Because of Higher Utilization?
AAAAHHHHH, we are back to that lovely entity called Chase.
Chase reminds me of the mean school teacher looking at you from the back of the classroom with a ruler in hand, if you talk to the kid next to you, WHACK.
I have yet to figure out the lending practices of this bank, they are really hard to figure out, it seems like if you use 40% or more on their card OR any other card you will be rate jacked. I had a friend who had the United Airlines card, she spent thousands of dollars a year on this card, but never paid interest, you got the dreaded letter in her mailbox stating they were closing the account because of her spending habits, etc. No real reason stated, my guess is she never paid them one drop in interest and was gaining miles after miles so they kicked her to the curb.
While we all have rights, remember the bank is lending to us, we are at their mercy
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Board Monitor
Posted: Mon Jul 03, 2006 8:34 am
Post subject:
Quote:
use 40% or more on their card
Interesting. Do you have any examples of this happening? I find it hard to believe.
I also find it hard to believe that they cancelled your friend's card just b/c she PIF every month and racked up miles. The card companies still make money off of you if you PIF due to merchant fees.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
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 12:11 PM
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