<font color=skyblue>I have three credit cards:

Visa from my Credit Union APR 11.25%
Visa from Chase (Previously Bank One) APR 22.99%
American Express APR 13.69%

The national average this week is 13.27, so I called and asked the Chase company why they were trying to run me off. See, previously it had been 12% when they were Bank One, but then Chase took over and my rates started rocketing. In speaking with a manager at BB&T where I have an account, he told me that a lot of people were complaining about Chase's rates. Even on Clark Howard's radio show, he bad-mouthed Chase because they have a lie built into their mice-print that allows them to break their own rules on fixed rates if they promise a fixed rate for a period of time. Anyway, as I said...I called Chase and asked them why they would treat me like this. Her reply was that the rate of the APR is more than just the national average, but also if I am considered high risk, like if my Credit Score was bad. I told her that my credit score was so brightly paved in gold that people weep in joy to have me as a paying customer. She then told me the truth that because I had more than 50% of the card used up of the $2900 limit, that I was considered High Risk by their company. I told her that what she just explained to me was not High Risk for them, but high Opportunity because I had been watching my monthly payments and was paying more than the minimum each month, but after their tricky interest costs, I was left only having $1.98 placed towards Principle. I told her that by raising the APR on me to 30%, they were hoping that I would never pay anymore than the bare minimum each month and that this rate would feed their cash-hungry asses very well, just like all the other millions of people that they are trying to rob from. I told her that she was part of a legalized robbery of the American People, and that her mother would be ashamed of her. Then I thanked her for answering my questions and hung up.

So I warn all of you with credit cards. Look at that interest rate. Watch and see how much is actually being applied to Principle. Not all credit card companies are trying to take such blatant advantage of their customers, as I have shown that only Chase of the three cards I own has been so sneaky as to come up with a high interest rate to suck the money out of my pocket faster than I can repay the debt. If you have a Chase card, beware.</font>

[ 11-11-2005, 04:19 PM: Message edited by: Larry_OHF ]

No problem...Just pay 'em off when they are due. I NEVER run a balance.

Agreed, though for major purchases on your credit card, I'd recommend your CU.

[ 11-11-2005, 04:34 PM: Message edited by: Sir Degrader ]

Remember... you didn't talk to the person who sets the rates, only the poor schmuck who gets to explain them. That doesn't make it any better, but make sure your anger gets directed to the right person.

First thing I'd do is to contact my credit union to see what the impact would be of me doing a balance transfer. If I could, I'd transfer that whole amount to the CU card and cancel the Chase card. Send the card back with the payment, cut up into pieces, with a statement that the sole reason you're cancelling the account is because of the predatory interest rates.

If my CU card couldn't handle it, then I'd get another card from the many that come in the mail and transfer the balance to it. Then send the Chase one back.

Repeat until it's paid off.

Only other thing that comes to mind would have been to ask the person you talked to if they would put their position (that half your limit as a balance made you high-risk) in writing.... it's mighty funny to see what happens when you ask people to put things in writing [img]graemlins/hehe.gif[/img]

I carry only two credit cards now, and pay them both off monthly. It took a while to get there, but that's where I'm staying. One card is for work, and one is for me. No department store cards, no gas cards, nothing. In fact, that's why I'm going to drop Costco later -- they only accept *their* credit card at the pump, and I don't want or need another one.

I keep two cards on hand (three, if you count the my corporate AMEX, but I don't have to pay for that although I do have to justify it [img]smile.gif[/img] )

One card has a relatively low limit, $3000 and a 10.5% interest rate, the other a $10000 limit but the interest rate is 17.9%. I use the low interest card for day to day stuff, and usually my balance runs around 10%. My other card, I don't carry a balance on, only use it occasionaly and pay it off immediately upon receipt of the statement. It's nice to have that extra buffer for the emergencies.

The interesting thing with credit cards, is that paying them off immediately really doesn't do much for your credit rating. If you trying to improve your credit rating, keep a small balance and only pay the minimum each month. It shows creditors that you are capable of making monthly payments. (Or so I've heard)

If my rates start to creep up, I call and tell them they have to do better. If they don't, I cancel. I usually explain that I have several balance transfer offers on hand, at X%, and if they don't beat that percentage, I will move the debt and cancel.

My most recent success was a couple months ago -- I posted about it on Oasis. I went from 18%+ down to about 10%. I made the guy make me 3 different offers, and he kept going lower. He asked what it would take to keep my debt, and I told him, "the offer I'm holding in my hand is for 11.99%" -- and he beat it.

If your current cards don't want to let you transfer the debt for cheap percentages (and no transfer fees) then watch for credit card offers in your mailbox. Don't ever fill out the offer in the mail, though, call and negotiate it lower.

One thing people don't seem to understand is that almost nothing in this world is "take it or leave it." Everything's negotiable. If it isn't, always choose "leave it" unless you absolutely have no other choice.

Be extra vigilant of your Credit Card companies these days, folks. They just won a HUGE lobbying effort with recent Bankruptcy reform that just went into effect. If your credit card company can run you bankrupt, you can no longer discharge the debt in bankruptcy. So, this "sea change" in the law encourages them, in the short run, to overextend you on credit, then raise rates and drive you bankrupt. Some will go for this heavy-handed business model, so be careful you don't get caught up in the mix of people who get hung out to dry on this one.

[ 11-11-2005, 05:22 PM: Message edited by: Timber Loftis ]

So many people Larry do not look twice at the bill, or are too lazy to change. Credit card companies know this and by taking over the cards from another company it is a guilt edged chance to skim the [s]victims[/s] customers to pay for the leverage used in the buyout.

I only use a credit card for car hire / booking over the phone or internet and real emergencies. I f you use the card for every day items you are asking for trouble.

I'm a "rate tart"! I move credit cards every 6 months to take advantage of the 0% interest deals.

Why pay interest if you don't have to?

Not much use to anyone outside the UK though! :rolleyes:

Rate Tart

Actually, I just finished being a rate tart myself. I graduated law school with lots of debt, and did the "shell game" between 0% offers for a solid 5 years.