I am being robbed!

[Bateluer]

I just got back from picking up my mail that was delivered yesterday. Apparently, Chase is raising the interest rate on my card to a whopping 29.24%! WTF!? I have never, ever, missed a payment on this card and have always paid more than the minimum payment.

The interest rate was high before, 17.24%. Until Feb, I had a signature loan that was receiving my full attention and getting the massive monthly payments. Now, I made the first massive payment against the Chase card only a week ago. Then I get this letter telling they are basically going to mug me.

Now, this card had a balance of just under 1500 USD. Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

 

[SmoochyTX]

Originally posted by: Bateluer
Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

Absolutely

 

[MemnochtheDevil]

Originally posted by: Bateluer

Now, this card had a balance of just under 1500 USD. Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

Yep, assuming you can get one with a low intro rate for balance transfers I can't see how that wouldn't be better for you. My bank just sent me a offer for a 6 month transfer rate at 3%, the difference between that and 29% is huge. Might be a good time to get your free credit report and make sure no incorrect info has made its way on there.

 

[giantpinkbunnyhead]

Yup. And do it yesterday.

 

[MrDudeMan]

as memnoch said, i would check your credit report and also transfer that balance immediately. 29% is absolutely insane.

 

[CrackRabbit]

This seems to be a very disturbing trend, yours is the third thread I have seen on this subject. I also go a letter similar to the one you got, card was going from 14.9% to 29.9%. It is gone after my next paycheck. Sadly it is the only card I have, and it makes me reluctant to get another.

 

[Bateluer]

Originally posted by: MemnochtheDevil

Originally posted by: Bateluer

Now, this card had a balance of just under 1500 USD. Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

Yep, assuming you can get one with a low intro rate for balance transfers I can't see how that wouldn't be better for you. My bank just sent me a offer for a 6 month transfer rate at 3%, the difference between that and 29% is huge. Might be a good time to get your free credit report and make sure no incorrect info has made its way on there.

I throw those offers away because the introductory rate only lasts for 6 months or less. Granted, I'd only need about 5 months to pay off the balance.

I just sent in an online app for the military star card. I know thats got a much lower interest rate than both cards I currently have. Should hear something on that front tomorrow.

 

[Bateluer]

Just pulled my credit report, there's nothing incorrect on it and my credit score is just shy of 700. Doesn't seem like they have a reason to jack the interest rate that high.

 

[Amused]

Originally posted by: Bateluer
Just pulled my credit report, there's nothing incorrect on it and my credit score is just shy of 700. Doesn't seem like they have a reason to jack the interest rate that high.

Read your customer agreement. If ANY of your credit cards have a balance higher than 80% or your credit is stretched too thin they can raise your rates to the "default" rate.

This has actually been in the news lately as Citi agreed to stop doing this.

 

[MrBond]

Chase jacked my rate up to the same amount on the card I have with them that still carries an interest rate. I expect to get a letter for my Mastercard from them in May (when the 0% runs out) saying the rate is up to 29%.

I don't carry a balance on either card and I have pretty good credit. They're probably just not making enough money off of me and are hoping I slip up and pay late one month.

 

[zoiks]

Why don't you call them to get the interest rate reduced.

 

[Greenman]

I Had to give up credit cards because of the loan shark interest rates. Chase is the worst from what I can see, but none of them are very good.
What I don't understand is why anyone would use a credit card anymore, it's a total ripoff industry.

 

[crt1530]

The funny part is that you think it's reasonable to pay 17.24% in the first place.

 

[zoiks]

Originally posted by: Greenman
I Had to give up credit cards because of the loan shark interest rates. Chase is the worst from what I can see, but none of them are very good.
What I don't understand is why anyone would use a credit card anymore, it's a total ripoff industry.

I use a credit card to rack up my airline miles. On the other hand having a few credit cards with no debt means that lenders can trust you more with their money; something that will help immensely when you need money for a business or a house.

 

[Flammable]

AMEX FTW

 

[jupiter57]

Dude, you're an ATOTer, just sell a couple of shares of stock & pay them off!

Oh wait, You're an ATOTer, your stocks alway perform at a much better return than the interest on this card.

Conundrum.

 

[Sukhoi]

Originally posted by: crt1530
The funny part is that you think it's reasonable to pay 17.24% in the first place.

:laugh::laugh::laugh:

 

[Gillbot]

Originally posted by: SmoochyTX

Originally posted by: Bateluer
Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

Absolutely

+1

Anytime a CC company tries to up my rate I just pay it off or tranfer the balance and close it. They usually backpedal and offer to lower it but I still close it anyway.

 

[Greenman]

Originally posted by: zoiks

Originally posted by: Greenman
I Had to give up credit cards because of the loan shark interest rates. Chase is the worst from what I can see, but none of them are very good.
What I don't understand is why anyone would use a credit card anymore, it's a total ripoff industry.

I use a credit card to rack up my airline miles. On the other hand having a few credit cards with no debt means that lenders can trust you more with their money; something that will help immensely when you need money for a business or a house.

Nothing wrong with having zero balance cards. What I ment was people that will carry a balance on a card. It's a time bomb, they will find a reason to crank your rate up.

 

[crt1530]

Originally posted by: Gillbot

Originally posted by: SmoochyTX

Originally posted by: Bateluer
Think it would be a good idea for me to transfer the balance to lower interest card and cut this Chase card up?

Absolutely

+1

Anytime a CC company tries to up my rate I just pay it off or tranfer the balance and close it. They usually backpedal and offer to lower it but I still close it anyway.

There is no good reason to close a credit card. If you want to punish the company, keep it open, purchase a pack of gum once a year and make them send you paper statements each month.

 

[ranmaniac]

Chase did that to me as well, my account with FirstUSA was either sold to or was taken over by Chase, and they upped my interest rate from 9.99 to close to 30%. I filed a complaint with the BBB, as Chase upped my rate, even though I never missed a payment, and my credit report was clean. I simply closed my account with Chase, and paid it down until I started receiving 0% for 12 months cc offers from Citi.

I transferred my balance to Citi, paid off the balance before the 12 month period, and vowed to never do business with Chase again. Chase are nothing but a corporate loan sharking mafia, and the best way to deal with them is to not ever give them your business.

 

[chusteczka]

Originally posted by: Bateluer
...
I just sent in an online app for the military star card. I know thats got a much lower interest rate than both cards I currently have. Should hear something on that front tomorrow.

Are you eligible to join the Air Force Federal Credit Union?
They probably have a credit card with a stable rate that will be low and not fluctuate according to the whim's of the market.

I have had a Navy Federal Credit Union credit card for 15 years now. They started me off with a stable 12% rate back in 1992 that recently dropped down to 6%. The great advantage I enjoy with this card is that my first payment on a charge is due two billing periods after I make the charge. This means that I am not charged a late payment if for some reason I forget or am unable to pay ontime within the first billing period. There is no late payment fee or interest charge either, during this extra one month buffer period. The Air Force Credit Union may have a similar policy.

EDIT:
This extra one month buffer period may be a feature provided for the Navy due to ship deployment schedules. There were many times I made a charge on my card, then went out to sea for a two month period before I had received a statement from the credit card with a bill for my charge.

 

[BUTCH1]

Originally posted by: ranmaniac
Chase did that to me as well, my account with FirstUSA was either sold to or was taken over by Chase, and they upped my interest rate from 9.99 to close to 30%. I filed a complaint with the BBB, as Chase upped my rate, even though I never missed a payment, and my credit report was clean. I simply closed my account with Chase, and paid it down until I started receiving 0% for 12 months cc offers from Citi.

I transferred my balance to Citi, paid off the balance before the 12 month period, and vowed to never do business with Chase again. Chase are nothing but a corporate loan sharking mafia, and the best way to deal with them is to not ever give them your business.

That's scary to read as I just transfered my balance from another card to my chase card (0% APR,1 yr.). Guess I'll be making
damm sure that check gets there 4-5 days before due date..

 

[Pepsi90919]

i don't even pay attention to interest rates on credit cards. i would be a fool to let them charge me interest in the first place.

 

[Strk]

This seems to be a pattern with Chase.