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Credit Card Bait & Switch

Discussion in 'Anything goes' started by The Big Ragu, Jan 17, 2009.

  1. Pancamo

    Pancamo Active Member

    You won't know how much of an impact closing it has because scoring system is not published.
     
  2. The Big Ragu

    The Big Ragu Moderator Staff Member

    poin, I just found an article on Bankrate Monitor that addresses what I had in mind. It is a Q&A with someone who is involved with credit scoring. Here is the link.

    http://www.bankrate.com/brm/news/cc/20080328_close_credit_card_FICO_score_a1.asp

    It says a lot, but one thing I was focused on was this:

    I have another card I have had longer -- first card, I got in in college. So I am probably overthinking it. That card alone demonstrates that I have a long credit history, so even if my report takes a hit for closing an account, it may not be as significant as I am worrying about. So yeah, I am waiting for my payment to post and then I am going to call and tell them to go to hell and never expect any business from me again -- not a bank account or any deposit, a money market, a mortgage or anything. And I will put it in writing to the CEO and some management types.

    Thanks for bringing it up and getting me to find that article.
     
  3. mustangj17

    mustangj17 Active Member

    Same here Shaggy. In fact through my rewards dollars I've actually made a couple hundred over the past few years. Not a lot but free money just by using my card and paying it off on time.
     
  4. crimsonace

    crimsonace Well-Known Member

    Rule No. 1 of using credit cards: Pay them off ASAP.
    Rule No. 2: Once you get them paid off, pay your balance IN FULL every month. No interest charges, no late fees. That's where they nail you. I set mine to automatically deduct the full balance each month. I essentially have no debt -- save my house -- and it's a very, very free feeling.

    If you have service charges, get a different card.
     
  5. poindexter

    poindexter Well-Known Member

    If your FICO goes from 815 to 800, who really cares? (and even that is highly dubious) It won't harm you getting the lowest rates for whatever loan you apply for.
     
  6. Baron Scicluna

    Baron Scicluna Well-Known Member

    Sounds like the newspaper industry. They're trying to get rid of customers as well. ::)

    I've had my issues with credit card companies in the past as well. I've sent in my payment by as much as 15 days before, only to have them claim that they didn't receive it until after the deadline. They conveniently post it the day after was due and tried to boost my interest rate. I called them out on it.

    Recently, they tried to boost my rate again, claiming that the prime rate had gone up. I pointed out that the Fed had just cut interest rates, and that if they keptboosting my rate, I'd go somewhere else. They agreed to cut it to a 1 percent rate increase, which still sucked. But they ended up putting the rate back to my usual one.
     
  7. dixiehack

    dixiehack Well-Known Member

    If you aren't dealing with someone who will take the time to actually review your credit profile instead of just type in the three digits the computer spits out and hope for the best, you are dealing with someone too stupid to be a part of your financial life anyway.
     
  8. apeman33

    apeman33 Well-Known Member

    You get monthly statements on closed accounts? Strange. I don't get statements even on my open accounts unless I have a balance. And I've never received a statement on a closed account once I paid it off.

    But, heck, let them send statements; they're losing money doing so. If that bank ever calls you, ask them if a fiscally-sound institution would waste money sending statements to people who owe them nothing. When they say, "no," I'm willing to bet the conversation will turn quite interesting when you tell them that they must not be a fiscally-sound institution.
     
  9. alleyallen

    alleyallen Guest

    Don't know what the real impact would be but I'd close the account. To me, there's something that should be said for loyalty. When I had car insurance with Allstate, I kept seeing my premiums get bigger and bigger, despite the fact that I have/had an absolutely clear driving record, no accidents, nothing.

    WTF Allstate? Where are all these safe driver discounts you're offering on TV?

    Allstate lost my business as a result. Show some loyalty to me as a customer and I'll be equally loyal to you as a business.
     
  10. Pancamo

    Pancamo Active Member

    The three digits are the key to getting a home mortgage with a decent rate today. Fannie and Freddie have scaled the structure to loan to value and credit scores. Someone with a 740 plus is going to get a better rate than 720, 700, or 680. Someone with a 685 score will be at least 1/4 point higher than the 740 score.
     
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    I am not in the market for any loans and I don't need a mortgage. But that was why I wanted to know exactly what I was doing before I got rid of a credit card that had somehow amassed a $30K limit, which I have had for more than a decade. Saying "screw you" is the obvious gut reaction, because what they did was slimy -- they didn't like the deal they gave me anymore, and I don't doubt they are losing money on it. So they are reneging by changing the terms, adding an arbitrary fee that effectively raises the rate they promised and also changing the repayment schedule to force me to pay it down quicker. It doesn't seem like it should be legal, but who knows what fine print I never read. On top of that, they are also trying to get me to walk as a customer entirely by keeping the fee in place, even though I am paying it all back and being forced out of the deal they were all too happy to give me three years ago. It's like punishment for beating them at their own game--even if I pay it down o zero and give in to their strong-arming, they are telling me they don't want me as a customer anymore because of it. The woman I spoke to as much as said so.

    Even so, I try not to ever cut off my nose to spite my face. I had a good FICO score last I checked. If closing this card affects it, because I am taking something with a big line and a long credit history out of my score, they have doubly screwed me. I'm going to close the account anyhow. I've never banked with Chase, but I sure as heck never will now and I am telling everyone I know about this. They may be having financial difficulties, but reneging on a deal that alienates such a large base of customers with good credit can not possibly be good for business. The only reason people got these deals in the first place was because their credit was good. The sites I have read about this--it's all over the Internet--are talking about class action lawsuits, so as a result, they are also going to have to defend themselves in a court now.
     
  12. JayFarrar

    JayFarrar Well-Known Member

    I suspect that if enough people have this problem you'll see a class-action lawsuit.
    Lawyer Up!
     
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