APR increase on DISNEY VISA

[Johnson1220]

I am so mad ! I just received a notice from CHASE that they are increasing the APR to 12.24% on the Disney VISA starting August 1, 2009! That is more than double what we were getting. They are saying it is b/c of the economy and that they are doing it across the board. Once the economy rebounds there may be a chance that it is lowered. I am so angry. They did say that vacations booked here will still get the 6 month APR. I am thinking of stopping using this after our September vacation I am so mad...

Did anyone else get this notice !?!

 

[austinosphere]

I'm sorry. I know higher APRs are no fun. But it's going to be a pretty across the board thing I think.

Look at the bright side - maybe this will encourage us to pay off our credit cards each month.

(I'm a bad one at that).

 

[gracie1]

If you don't plan on using it anymore, they normally have an "opt out" plan where you can choose not to take the increase and they will just close the account. I owe on mine as well and may just transfer to another card if I get the letter. I have 4 chase cards and have only received a letter about one of them and that card I don't even use so I just shredded the card

 

[a1tinkfans]

Just want to say that MANY banks and financial institutions are cutting back lines of credit, lowering limits, sometimes significantly and increasing %. As a small business owner, it can be a NIGHTMARE for several reasons, including but not limited to having no/limited access to previously "open" $$ that then disappears...
AND more importantly to many ....WHEN your credit limit is lowered your DEBT ratio goes UP thus your CREDIT score goes DOWN............
THIS is happening across the board to people that PAY off their cards each month and are on time customers.

BUT, keep in mind that if you OPT out or close accounts it WILL ALSO affect your credit score (DOWN), more so now as it makes it "appear" as though you were unable to handle the account and pulled out of it....so tread carefully.............
SAD that so many good people are being "brandished with the same paintbrush" of the many many people that made POOR decisions and were/are living above their means and came crashing down.....
And the bailouts? WHAT have they accomplished...IMHO..NOTHING...we're getting deeper add deeper into debt....and if I hear that "well we needed to do something now to avoid it getting worse later" theory....I might explode. Seriously, SCARE tactics should not rule this great country. How about
HARD work and SELF respect and Higher education WILL get you to a better place, not an easy or fast fix, but own accomplished with PRIDE.
OKAY, enough ranting...(that felt good though)
As far as I am concerned the % can be 25%, I could care less as I do not pay a PENNY in credit card interest.......I just avoid it and un necessary DEBT like the plague. Wishing everyone GOOD financial times......
Heres to Better Times Ahead.............or heres to HOPING for Better Times SOON Ahead

 

[jacos11]

We got the letter and I will be closing the card as soon as it's paid off. We will use our visa rewards card through our local credit union.

 

[gracie1]

I owe on my disney visa and will be putting the rest of my vacation on there. Right now I am on the 0%. If it goes up, then I will just have to deal with it. I just hope that they don't drop the limit down to make me over the limit. If so I will be transferring to another card
I have always heard that the more accounts you close how it will affect your credit score. I never had that problem (knock on wood)
Right before I decided to buy my house 3 years ago I closed all my accounts except for 6 (I closed 21 cards) You got it, it was not a typo, 21 cards
Not that I need to justify myself, but I had these cards and just didn't use them very much. So I closed them all. I was looking for a house and a few months later I went to settlement and my credit score was a 745
I thought maybe it would show up later down the road but when I took out a loan for some home stuff I still had the same score.
I guess it depends on wether the cc reports Not sure. But am just happy that I haven't experienced problems with closing accounts and opting out of them.

 

[n2mm]

Doesn't matter who you are it seems to be happening to everyone. I got the same notice too. I'm that person who pays her balance each month no matter what it is, so they make no money off of me. It really doesn't matter to me what my interest rate is, I don't pay any interest to Chase. But I do manage to get about 500 rewards points per year. I have a Visa through my FCU w/an 8% fixed rate and I use that one if I have to carry a balance. My daughter got the same notice from Chase and she closed her account.

 

[Green Tea]

I'm that person who pays her balance each month no matter what it is, so they make no money off of me. .

They still make money off you-aprox. 3% of every charge you make. 500 points a year is $50,000 a year charged. So they are making $1500 a year off you. Don't think they are in the business of making no money.

 

[n2mm]

They still make money off you-aprox. 3% of every charge you make. 500 points a year is $50,000 a year charged. So they are making $1500 a year off you. Don't think they are in the business of making no money.

Impossible. I've never paid one penny more than what I've charged. I just charged my DVC purchase today and will pay off the card as soon as it shows up on my online bill. I only use my charge for bill projects when I have the money sitting in my savings account. If I charged $9,800 today and pay $9,800 next week, how did they make any money off of me....? I don't see your logic. Or do you mean the vendors are paying, because it's not me! I could care less if the vendors are paying.

 

[Disneefun]

Impossible. I've never paid one penny more than what I've charged. I just charged my DVC purchase today and will pay off the card as soon as it shows up on my online bill. I only use my charge for bill projects when I have the money sitting in my savings account. If I charged $9,800 today and pay $9,800 next week, how did they make any money off of me....? I don't see your logic. Or do you mean the vendors are paying, because it's not me! I could care less if the vendors are paying.

Green Tea meant that the stores have to pay a fee to the CC companies for every purchase you make. so every time you swipe, the cc's do make money, you're just not the one paying it directly (although we all pay it in the form of higher prices, but that's another post)

 

[minnie1928]

Impossible. I've never paid one penny more than what I've charged. I just charged my DVC purchase today and will pay off the card as soon as it shows up on my online bill. I only use my charge for bill projects when I have the money sitting in my savings account. If I charged $9,800 today and pay $9,800 next week, how did they make any money off of me....? I don't see your logic. Or do you mean the vendors are paying, because it's not me! I could care less if the vendors are paying.

They are making money off of you...it's called interchange income. You didn't pay for it directly (like interest) but you did generate the income for them. Interchange income is BIG business. Anytime you use a card (debit/credit) with a Visa or Mastercard logo, interchange income is being generated.

I got my notice today, but honestly I could care less. I don't carry balances, I just rake in the reward points. I'll be keeping my card.

 

[cepmom]

Impossible. I've never paid one penny more than what I've charged. I just charged my DVC purchase today and will pay off the card as soon as it shows up on my online bill. I only use my charge for bill projects when I have the money sitting in my savings account. If I charged $9,800 today and pay $9,800 next week, how did they make any money off of me....? I don't see your logic. Or do you mean the vendors are paying, because it's not me! I could care less if the vendors are paying.

I think she meant the percent the merchants get charged everytime you use the card....the banks are making plenty of money from them even if you pay your charges off each month.

I pay my charge cards off each month as well, and am waiting to get the letter stating they are lowering my limit or raising my APR. So far it hasn't happened.....yet.

 

[n2mm]

I think she meant the percent the merchants get charged everytime you use the card....the banks are making plenty of money from them even if you pay your charges off each month.

I pay my charge cards off each month as well, and am waiting to get the letter stating they are lowering my limit or raising my APR. So far it hasn't happened.....yet.

Makes sense (or cents). I got my notice yesterday. I only use my card to get the rewards points. I wondered if they will lower my limit. That really wouldn't make a difference to me either. I imagine they will just close it one day. Since Disney is my biggest vendor--esp. DVC or AP. I only use this card for big purchases, home remodeling, and travel expenses. I've had my federal credit union Visa for 25 years and it's always been good to me! (this is my card of choice).

 

[wall*e2008]

I think she meant the percent the merchants get charged everytime you use the card....the banks are making plenty of money from them even if you pay your charges off each month.

I pay my charge cards off each month as well, and am waiting to get the letter stating they are lowering my limit or raising my APR. So far it hasn't happened.....yet.

I have two Chase Visas, one being the Disney one. Both of the statements had an insert. The two APRs were raised, but we have never carried a balance on either of them, so I could not tell you what they were or what they got raised to. I have had my limits raised on one of the cards each month.

I think this is all to hedge their bets with the new rules.

 

[Green Tea]

how did they make any money off of me....? I don't see your logic. .

As the above prosters provided, Chase makes money from the vendor every time you swipe. About 3% of the transaction. Banks don't just provide a service for nothing.

 

[RachaelA]

We had 0% for a year and now we have 12% (or whatever it is). We never carry a balance so I could care less what my interest rates are.

 

[Disneyliscious]

SAD that so many good people are being "brandished with the same paintbrush" of the many many people that made POOR decisions and were/are living above their means and came crashing down.....

While I agree that the above statement plays a role in this, lets not forget about the honest, hardworking Americans who made every payment on time and then got laid off from their jobs. Being at a job for 20+ years and getting a credit card because you can afford it is not making a poor decison. Every person who is breathing is at risk of being laid off. Its not fair to blame those people. Their lack of ability to pay is not their fault. If everyone could pay in cash....we wouldn't need credit. The fact is.....we do need it....and as a nation, we are being taken advantage of by it.

Lets also not forget that the CC companies are just as much at fault for approving credit lines whch are beyond the means of re-payment for those who are already in poverty. In fact, they are more to blame then those who can't re-pay the line of credit.

It takes somone with some kind of intelligence to write the criteria used in approving those for a credit card. All it takes to get a credit card are a decent credit score and a job. You're not even required to have a GED to get a credit card. As a society, we cannot blame the uneducated when they are being taken advantage of by the educated.

Its a SICK, SICK system.

 

[wall*e2008]

While I agree that the above statement plays a role in this, lets not forget about the honest, hardworking Americans who made every payment on time and then got laid off from their jobs. Being at a job for 20+ years and getting a credit card because you can afford it is not making a poor decison. Every person who is breathing is at risk of being laid off. Its not fair to blame those people. Their lack of ability to pay is not their fault. If everyone could pay in cash....we wouldn't need credit. The fact is.....we do need it....and as a nation, we are being taken advantage of by it.
Lets also not forget that the CC companies are just as much at fault for approving credit lines whch are beyond the means of re-payment for those who are already in poverty. In fact, they are more to blame then those who can't re-pay the line of credit.

It takes somone with some kind of intelligence to write the criteria used in approving those for a credit card. All it takes to get a credit card are a decent credit score and a job. You're not even required to have a GED to get a credit card. As a society, we cannot blame the uneducated when they are being taken advantage of by the educated.

Its a SICK, SICK system.

The bolded is flawed thinking. A CC is a tool that is used to not have to carry large amount of cash around when you are making a purchase. It should only be used to buy an item that you have the money in the bank to pay it off with. If you did that every month then the day you lose your job you would not have a balance and you would not use it to buy more stuff you did not need.

Just making payments is NOT living within your means. A loan is needed for a home but nothing else. One should save to buy a car and then buy it. If you need a car, but the best one you can for the money you have saved. Buy clothes when you have the money and on and on.

If you are laid-off and your unemployment and savings is not enough to make your monthly payments, then you need to reconsider the debt you are carrying and/or save more for the emergency.

 

[crisi]

As the above prosters provided, Chase makes money from the vendor every time you swipe. About 3% of the transaction. Banks don't just provide a service for nothing.

And some places will give you a 3% discount if you pay cash (ask if you are making a large purchase) or they'll only take their own store cards - to avoid this.

 

[HeyIt'sMe]

I recently got the notice too - - - - going from 10.15% to Prime + 9.99% "which as of May 17, 2009 would be 13.24%" (that's what my notice stated). Glad we don't have a balance. And we won't be using that card anymore just on principle!