I thought I was safe, but CHASE got me!

[sksjasams]

The title says it all...here we are in March, my two Chase cards had their interest rates raised a few months ago to 13.24%, which I could live with. I felt so lucky that I was not dealing with all the issues I was reading about here. I had a Household Bank card that I had paid off that got closed, but that was it.

Well, yesterday I got 2 letters, one for each Chase account. They closed my account with no balance (had $5500 limit) and lowered the credit limit from $6000 to $3700 on the account that I owe $3400. Reasons given...balance owed on revolving accounts too high and balance too high compared to credit limit. Well now that they did this, my balances on credit cards are too high compared to my credit limit! My husband is unemployed and I liked the security of having that available credit in case of emergency.

How can I help control this situation before my other cards start to follow suit? Should I try to apply for another type of card in order to boost my available credit? Is there any chance the new info has not been upated yet on my credit report? Please advise! Thank you for your help!!

 

[mommyoffive]

Sorry to hear this happened to you. I don't have any advice but I am done with chase now that they raised our interest rate to 17%. We started at 5% interest.

 

[maggiew]

I'm sorry that this happened to you. It stinks that they can close one account and then extremely lower the limit of the other. I guess you should feel a little lucky that they didn't lower the limit below what your balance was on the card! I've read about them doing that to a couple people here on the DIS board.

But, I don't think you should apply for another credit card. I see some red flags when you said "before my other cards follow suit". That implies to me that you have several other cards. Do those have balances too?

You just need to tighten your belt a little and try to weather the storm. I hope your DH finds a job soon.

Maggie

 

[TheRatPack]

We paid off a lot of our cards a few months ago and following that...we got hit with lower limits on the Chase card (cut limit in half) and Target Visa....our other cards haven't lowered the limit yet, but doesn't mean they won't. They give random reasons why they lowered them...but seriously it's just a sign of the times and it's going to be harder and harder to get credit with the economy the way it is. Oh and be thankful that you still have around 3000.00 limit on yours....they started us 3 years ago with 1500.00 and that's where we've stayed. Now we have a measly 700.00!!!

 

[dd50]

BoA and Chase have been doing that to every one at one time or another. If you need another card I would suggest going to a credit union but most times you will need to supply documentation of income.

 

[sksjasams]

Whew...I made couple calls to Chase and they agreed to reinstate my credit limit and reopen the closed account. I feel so much better. Thank you!

 

[GaSleepingBeautyFan]

Whew...I made couple calls to Chase and they agreed to reinstate my credit limit and reopen the closed account. I feel so much better. Thank you!

I'm glad it worked out. It is nice to have a CC in case of emergency.

I got hit by Target Visa.

They raised my interest and lowered my available credit. I've always paid them on time so it sure steamed me.
It's the only credit card I have in my name only so I don't want to just close it because I think it's important for a woman to have credit built up in her own name.

When I called them about it, they said they are doing it to everyone. They would not lower the interest rate either.

I don't carry much of a balance so I'm going to pay it off and just use it every couple of months to keep it active and pay it off right away when used. Then I'll keep my fingers crossed they don't lower the credit available even more.

 

[jessicaerv]

Originally Posted by sksjasams View Post
Whew...I made couple calls to Chase and they agreed to reinstate my credit limit and reopen the closed account. I feel so much better. Thank you!

Chase did the same thing with my card - lowered my limit from $20000 to $7000 due to inactivity. When I called and asked them to reinstate my limit they told me they'd have to run my credit in order to evaluate my credit-worthiness!!!

I was pissed because I've always been a good customer, never late, always paid off my balance each month, and the change in my status with the card was initiated by THEM and was not as a result of any fiscal irresponsibility on my part. The manager told me there was nothing they could do.

So, I use the card for one small, scheduled payment (cell phone) each month so they can't close the card on me. They no longer get any money from me (or from the vendors I charge at).

 

[mom2faith]

Something that jumped out at me from reading this, and somethign that we recently did, was to follow DR rules about not needing credit for emergencies.

We paid minimum on our CCs for just a few months and put away the extra for emergencies. Then we went back to our Snowball plan after we got a little emergency buffer saved. I know a big emergency can run us more than what we have saved, but at the same time, wqe have more than enough to cover life's day to day emergencies.

Anyway, just a thought....

 

[FIREFIGHTERMICKEY]

You may want to look into the Dave Ramsey Budget plan. I HIGHLY RECOMMEND IT! Youll never use a CC again!

 

[dd50]

Something that jumped out at me from reading this, and somethign that we recently did, was to follow DR rules about not needing credit for emergencies.

We paid minimum on our CCs for just a few months and put away the extra for emergencies. Then we went back to our Snowball plan after we got a little emergency buffer saved. I know a big emergency can run us more than what we have saved, but at the same time, wqe have more than enough to cover life's day to day emergencies.

Anyway, just a thought....

DR says to have NO CREDIT at all.