Sudden Increase in APR on Credit Card
Author: mscatz52
Posted: Tue Jul 04, 2006 11:27 am
Post subject: Chase increase apr
Recently noiified of increase of apr from 7.9% to 29.9%- reason given was too many open revolving accounts. Haven't opened any accounts since opened one with them. Haven't charged any more on any, no late payments, perfect payment history. Any answers?
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Author: hdporter
Posted: Tue Jul 04, 2006 11:49 am
Post subject:
Disturbing news.
Did the number of open accounts WITH balances outstanding change recently?
You report your former rate as being 7.9%. Was that a fixed 7.9% rate, or something like P+1.9%?
Author: Brammy
Posted: Tue Jul 04, 2006 1:56 pm
Post subject: Re: Chase increase apr
[quote="mscatz52"]Recently noiified of increase of apr from 7.9% to 29.9%- reason given was too many open revolving accounts. Haven't opened any accounts since opened one with them. Haven't charged any more on any, no late payments, perfect payment history. Any answers?[/quote]
I would respond by registered mail and point out the above facts. A lot of companies are tweaking their redlight default software to include things like this. IMHO that's like getting the universal default thing for something that was reporting at the time you opened the account don't see how its fair. If they don't respond to your letter and if you can afford it, I would pay the balance off and let it sit except for a few small occasional purchases. They will get the message in three to six months.
If its your oldest account or among them, you really don't want to close it.
Author: mscatz52
Posted: Tue Jul 04, 2006 2:37 pm
Post subject: Sudden Increase in APR on Credit Card
It was a fixed 7.9% apr. No other opened accounts or further purchases. I did send them a message through their site requesting a lower apr. Not sure if I should transfer to a different card, since that would mean 1 more acccount.
Author: hdporter
Posted: Tue Jul 04, 2006 3:09 pm
Post subject: Sudden Increase in APR on Credit Card
I don't have sufficient background to specifically say what happened here. However, as Prime continues to climb I expect issuers of Fixed rate cards to review their accounts and change the terms of those accounts whose holders aren't absolutely pristine credits. Should rates climb high enough (let's hope not), I'd expect these accounts to be discontinued altogether.
In the case of your account, I fully expect that you have the right to close your account immediately and continue to pay off your balance at the existing 7.9% fixed rate. Does that jive with the notice you received? If so, then this may be your best avenue if you have a reasonably large balance.
If your balance is very modest, you may prefer to transfer it to a new account (under a promotional BT rate) and keep this account open for the sake of maintaining the benefit of an older account in your credit profile.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Jul 04, 2006 11:27 am
Post subject: Chase increase apr
Recently noiified of increase of apr from 7.9% to 29.9%- reason given was too many open revolving accounts. Haven't opened any accounts since opened one with them. Haven't charged any more on any, no late payments, perfect payment history. Any answers?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Tue Jul 04, 2006 11:49 am
Post subject:
Disturbing news.
Did the number of open accounts WITH balances outstanding change recently?
You report your former rate as being 7.9%. Was that a fixed 7.9% rate, or something like P+1.9%?
Author: Brammy
Posted: Tue Jul 04, 2006 1:56 pm
Post subject: Re: Chase increase apr
[quote="mscatz52"]Recently noiified of increase of apr from 7.9% to 29.9%- reason given was too many open revolving accounts. Haven't opened any accounts since opened one with them. Haven't charged any more on any, no late payments, perfect payment history. Any answers?[/quote]
I would respond by registered mail and point out the above facts. A lot of companies are tweaking their redlight default software to include things like this. IMHO that's like getting the universal default thing for something that was reporting at the time you opened the account don't see how its fair. If they don't respond to your letter and if you can afford it, I would pay the balance off and let it sit except for a few small occasional purchases. They will get the message in three to six months.
If its your oldest account or among them, you really don't want to close it.
Author: mscatz52
Posted: Tue Jul 04, 2006 2:37 pm
Post subject: Sudden Increase in APR on Credit Card
It was a fixed 7.9% apr. No other opened accounts or further purchases. I did send them a message through their site requesting a lower apr. Not sure if I should transfer to a different card, since that would mean 1 more acccount.
Author: hdporter
Posted: Tue Jul 04, 2006 3:09 pm
Post subject: Sudden Increase in APR on Credit Card
I don't have sufficient background to specifically say what happened here. However, as Prime continues to climb I expect issuers of Fixed rate cards to review their accounts and change the terms of those accounts whose holders aren't absolutely pristine credits. Should rates climb high enough (let's hope not), I'd expect these accounts to be discontinued altogether.
In the case of your account, I fully expect that you have the right to close your account immediately and continue to pay off your balance at the existing 7.9% fixed rate. Does that jive with the notice you received? If so, then this may be your best avenue if you have a reasonably large balance.
If your balance is very modest, you may prefer to transfer it to a new account (under a promotional BT rate) and keep this account open for the sake of maintaining the benefit of an older account in your credit profile.
- Harry
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 10:32 PM
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