Chase Bank Credit Card APR Increase
Guest: Fehercica
Post subject: Chase Bank Credit Card APR Increase
Posted: Fri Apr 21, 2006 8:55 pm
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?
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Apr 21, 2006 9:02 pm
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.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Alexis Rios
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 12:33 pm
[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.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fenster
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 1:42 pm
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.
_________________
beware of everything
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Daniel
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 5:39 pm
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fenster
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 9:04 pm
Quote:
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
Universal Default doesn’t really apply to Fehercica’s case because he didn’t say he defaulted. UD and its consequences (high rates) should apply only when one defaults and NOT when cardholders amass large debts without defaulting.
To wit, Chase seems one of very few, if not the only major bank that’s hypersensitive to overall high utilization. Technically, if a bank is applying Universal Default sanctions to a case of high utilization, you can call them on it and win the argument.
The usual way banks react to high overall utilization is either by calling the cardholder and asking him/her to pay more than the minimum, or by notifying him they’re closing the account because they feel he’s become a liability.
BofA is one bank who could care less about high utilization, it doesn’t bother them. Unless you start defaulting that is.
_________________
beware of everything
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Daniel
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 9:19 pm
[quote="fenster"]Quote:
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
Universal Default doesn’t really apply to Fehercica’s case because he didn’t say he defaulted. UD and its consequences (high rates) should apply only when one defaults and NOT when cardholders amass large debts without defaulting.
To wit, Chase seems one of very few, if not the only major bank that’s hypersensitive to overall high utilization. Technically, if a bank is applying Universal Default sanctions to a case of high utilization, you can call them on it and win the argument.
The usual way banks react to high overall utilization is either by calling the cardholder and asking him/her to pay more than the minimum, or by notifying him they’re closing the account because they feel he’s become a liability.
BofA is one bank who could care less about high utilization, it doesn’t bother them. Unless you start defaulting that is.[/quote]
After considering this further I would agree it may not be universal default as the OP did not mention defaulting on any of their other accounts.
However that is just semantics as in the end as OP presented, Chase has taken adverse action by increasing the pricing.
Chase does seem to be sensitive to this behavior however perhaps more so on accounts with less time of relationship.
In either case OP should work to resolve and or take their business elsewhere.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Chase Bank Credit Card APR Increase
Posted: Fri Apr 21, 2006 8:55 pm
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!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Fri Apr 21, 2006 9:02 pm
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.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Alexis Rios
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 12:33 pm
[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.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fenster
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 1:42 pm
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.
_________________
beware of everything
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Daniel
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 5:39 pm
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fenster
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 9:04 pm
Quote:
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
Universal Default doesn’t really apply to Fehercica’s case because he didn’t say he defaulted. UD and its consequences (high rates) should apply only when one defaults and NOT when cardholders amass large debts without defaulting.
To wit, Chase seems one of very few, if not the only major bank that’s hypersensitive to overall high utilization. Technically, if a bank is applying Universal Default sanctions to a case of high utilization, you can call them on it and win the argument.
The usual way banks react to high overall utilization is either by calling the cardholder and asking him/her to pay more than the minimum, or by notifying him they’re closing the account because they feel he’s become a liability.
BofA is one bank who could care less about high utilization, it doesn’t bother them. Unless you start defaulting that is.
_________________
beware of everything
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Daniel
Credit Expert (100+ Posts)
Posted: Sat Apr 22, 2006 9:19 pm
[quote="fenster"]Quote:
As Fenster indicated it may be that they feel you have to much outstanding debt at other banks.
Interestingly Chase says they don’t participate in universal default but that is clearly smoke and mirrors as you outlined here.
Anyway my thought is with a 775 credit score you should not be paying 16% let alone 26%.
Pay them off then call and politely tell them that they are not in line with your other creditors and what can they do for you.
If you’re persistent they will transfer you to the retention department.
The other way if you don’t want to be bothered is pay the account off and use another creditor’s card that has better terms.
With a 775 score you should not have to settle for sub prime pricing take your business elsewhere.
Universal Default doesn’t really apply to Fehercica’s case because he didn’t say he defaulted. UD and its consequences (high rates) should apply only when one defaults and NOT when cardholders amass large debts without defaulting.
To wit, Chase seems one of very few, if not the only major bank that’s hypersensitive to overall high utilization. Technically, if a bank is applying Universal Default sanctions to a case of high utilization, you can call them on it and win the argument.
The usual way banks react to high overall utilization is either by calling the cardholder and asking him/her to pay more than the minimum, or by notifying him they’re closing the account because they feel he’s become a liability.
BofA is one bank who could care less about high utilization, it doesn’t bother them. Unless you start defaulting that is.[/quote]
After considering this further I would agree it may not be universal default as the OP did not mention defaulting on any of their other accounts.
However that is just semantics as in the end as OP presented, Chase has taken adverse action by increasing the pricing.
Chase does seem to be sensitive to this behavior however perhaps more so on accounts with less time of relationship.
In either case OP should work to resolve and or take their business elsewhere.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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