Another credit card complaint and question

[eliza61]

Uugh, I'm really starting to hate the cc companies.

Anyway, I have (had) a chase visa. I use it primarily for the kids college books and extras etc. anyway, I finally got the familar letter stating they were raising my rates from 7.99% (where it is now) to 14% The thing that is ticking me off is that the new rate will apply on previous balance along with any new purchases.

Soooo, I called and asked why? I get a standard pat answer. "The market conditions have changed causing the cost of business to go up and to have to reevaluate every one, yada, yada, yada. I inform the young lady of a few things that have not change. 1) always paid on time and at least 50% over the minimum payment. 2) credit score is still hovering around 700, which is good and 3) my debt to income is still ratio is still very low.
Any way Chase refuses to budge so I tell her I do not accept the new contract. Representative gets very froasty and says she'll close the account immediately and contact the credit agencies in the next few days.

So I have a 2 part questions.

1) I heard it looks bad to have an account closed on your account
2) Can I have some thing put on my credit account stating why I close the account?

Thanks.
E

 

[Tnkrbelle565]

Uugh, I'm really starting to hate the cc companies.

Anyway, I have (had) a chase visa. I use it primarily for the kids college books and extras etc. anyway, I finally got the familar letter stating they were raising my rates from 7.99% (where it is now) to 14% The thing that is ticking me off is that the new rate will apply on previous balance along with any new purchases.

Soooo, I called and asked why? I get a standard pat answer. "The market conditions have changed causing the cost of business to go up and to have to reevaluate every one, yada, yada, yada. I inform the young lady of a few things that have not change. 1) always paid on time and at least 50% over the minimum payment. 2) credit score is still hovering around 700, which is good and 3) my debt to income is still ratio is still very low.
Any way Chase refuses to budge so I tell her I do not accept the new contract. Representative gets very froasty and says she'll close the account immediately and contact the credit agencies in the next few days.

So I have a 2 part questions.

1) I heard it looks bad to have an account closed on your account
2) Can I have some thing put on my credit account stating why I close the account?

Thanks.
E

It will drop your credit score a few points if you "opt out" of the new rate (and no they don't list your reason) BUT unless you are planning on applying for a large credit- house/car- in the very near future, I wouldn't worry about that so much.

 

[Princess April]

I went thru the annual "checking my credit report" thing the other week and I could swear that they offer a place that you can add notes to your credit report. Maybe this would help.

 

[KelleyD]

you drop a couple of points for inquiries and a couple for closing, but unless you plan on closing out everything you have I wouldn't let it bother you.

I just did the same thing. Got my notification from Chase on a card I don't typically use. Called to cancel, woman asked why and I said I got notice about the rate change...I don't use it so it didnt make a difference, it was just the point that it was applied to previous balanaces...thats pretty crappy.

No argument, no bargaining just said its closed and thank you. I just hope this doesn't continue with cards I do use....

 

[TheRustyScupper]

I could swear that they offer a place that you can add notes to your credit report. Maybe this would help.

1) Yes, you can add comments, but, it seldom helps.
2) Most companies ONLY look at the FICO Score, not accounts or notes.
. . . insurance companies, such as car and house insurance *
. . . companies doing pre-employment checks
. . . companies granting credit cards, loans, etc
3) The exception is a mortgage.
4) There you MIGHT be able to have them read the notes.
5) But, the interest rate will depend upon Score, not notes.

* IMPORTANT: Auto insurance by most companies is now costed on your credit rating. So, even with no accidents, a person with lower FICO Scores can pay a lot more than the same person with a higher score.

 

[punkin]

When you close it, make sure Chase states that it was closed at your request (that will go on your credit report) and it will not drop your score as much (so I've been told).

 

[dizzneebabe]

It can actually drop your score more than you think. Other than on time payments, the single biggest factor in determining your score stems from your AVAILABLE credit. If you close that account, you no longer have that credit available, so your balance to available credit ratio goes down. It's a catch 22, but if you want to keep your score higher, you should keep the account open. It also may have more impact on your score if you have had that account for a long time. If it shortens your credit history by closing that card out, your score will fall even more.

I just got the notice from Chase too--mine is going from 8.99 fixed to 16.24!!!!! Why??? "...to maintain profitability on my account..." Of course, I don't ever use that card, but opted to put our airline tix on it for this Dec, b/c the airfare dropped. Within 3 days, I received the notice--for previous balances, too. Nice, huh?

I wanted to close it, but I really don't want to give up the high credit line (25K) and impact my score.

I'm hoping down the line credit will loosen up somewhere and I'll be able to transfer it somewhere else. Otherwise I'll be waiting until Dec to pay for it with DH's bonus (hopefully).

 

[Free4Life11]

I just got that notice too and am getting really sick of it! I could understand them raising rates across the board 2% or so, but they way they cherry pick which accounts to increase really bugs me! I already opted out of my Citibank increase, so those cards will be closed. I hate to close these cards too, but frankly I am sick of even dealing with credit cards.

 

[eliza61]

It can actually drop your score more than you think. Other than on time payments, the single biggest factor in determining your score stems from your AVAILABLE credit. If you close that account, you no longer have that credit available, so your balance to available credit ratio goes down. It's a catch 22, but if you want to keep your score higher, you should keep the account open. It also may have more impact on your score if you have had that account for a long time. If it shortens your credit history by closing that card out, your score will fall even more.

I just got the notice from Chase too--mine is going from 8.99 fixed to 16.24!!!!! Why??? "...to maintain profitability on my account..." Of course, I don't ever use that card, but opted to put our airline tix on it for this Dec, b/c the airfare dropped. Within 3 days, I received the notice--for previous balances, too. Nice, huh?

transfer it somewhere else. Otherwise I'll be waiting until Dec to pay for it with DH's bonus (hopefully).

See that's my catch 22. They don't give you a choice. If you keep it open you automatically have to get the higher rate on previous balance. Of course this is the card that I use for my kids college needs Right now I have a ~3000 balance from books and student funds. Generally, I would cover their books every term and take 5 months to pay it off, just in time for the new semester. I didn't mind at 7.99%
The thing that galls me is that I get dinged for not playing their extortion game.

Oh well, I closed the account so it's a done deal but I am very glad new legislation is going into effect very soon, which I think is the real reason behind this.

 

[mombare]

We got an interesting email today regarding one of our credit cards: Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed. We rarely use this card, and never maintain any kind of balance. This seems to be the first credit card issue we have had. Anyone else got this?