Can chase bank legally do this?

If you read your agreement they can pretty much raise rates for any reason - even if you are late on ANOTHER credit card!

 

My guess is that your credit score has fallen since your acct was opened. Yes, banks can do anything they want these days. Your onlu option is to transfer the balance to a lower rate card or pay it off.

 

It is legal.

Be sure to get their reason in writing (known as an adverse action notice), including what credit report(s) they pulled. They are required to sent you this if you request in writing. Use that to request free credit reports to make sure there is not something else negative on those reports.

Being near your credit limit with them alone is probably not the only component leading to their decision. Either other negative information, or a high total debt to total available credit across all your reported accounts is probably what tipped their decision. They are telling you to reduce their risk, or pay them for it.

What total debt to available credit do you have?

 

Your total debt is way up near your total available credit. Your credit report is all they have to go by. You could be making $400K a year and have $100K in the bank, but they would never know it.

In the game of debt musical chairs, Chase doesn't want to get stuck.

Also, never count on purchase debt staying at the purchase rate. You are more likely to have a balance transfer fixed rate until paid honored, as long as no negative items appear.

 

Chase did the same to me... you can 'decline the change' as the representative says... you have to write a letter and fax it to them. Basically you wont be able to charge anything else onto the account for the life of the balance, but you get to keep the terms the way they were. hope that helps!

 

I've seen agreements that state that they may change a variable rate for any reason without your notification or consent. Sucks, huh?

 

I am in the same boat, but I never received any notice of the rate change. I DO read my mail, so I have no idea when they would have sent it to me. It's been a while since I noticed they changed it, and I have charged a couple of this to the card since. Any recourse?

 

There's a few different approaches that are dependent on your credit profile.

If you regularly receive other cc offers, call up Chase and tell them BigBank Next Door has offered you a 12-month 0% rate and since you've been such a good customer - can they match it?

Generally speaking, you should, if you've been a good, on-time paying customer for at least 12 months, get a rate reduction.

If you never received any notification that your rate was increasing, or an adverse action notice, call them and ask for the reason.

Go up the food chain.

 

I've done some reading and it appears Chase doesn't give a damn, but I guess I'll try....

I've only had one late (2 days late) ever....the website was down and they even credited the fees. I also have drastically paid down the balance on the card in the last few months when I got a big bonus at work.

 

It works. It's also dependent on how well you're personally situated to negotiate and your ace-in-the-hole could be to just transfer the balance to a new lower rate card.

I'd agree that Chase doesn't have the best reputation; all the more reason to move your business if they can't come to terms with you.

If you've been a good customer, and you've paid down the balance dramatically, you've improved your position.

What happens depends on a great many factors *but* if you're in a good position, I've heard of some people actually shredding a card [it doesn't neccessarily have to be *that* card] while speaking to a CSR.

Best position is to not be dependent on just one institution.

 

It is worth it to find out how much they value your business. Never depend on only a couple lenders, and open or extend credit lines before closing any account, so your debt to available credit ratio does not interfere with a competitive transfer.