Ok I will try to make this as short as possible... actually I probably have a pretty easy situation. Anyways... I have had numerous cards for about 6years or so. I would always get the 0% then transfer them over etc... well needless to say that stopped so I ended up with a handful of cards all with balances on them. Not long ago my wamu cards turned into chase cards... and here is where everything went to hell. Not long after they were converted my limits were cut... after that followed my rates went up... and after that a few months here and there chase canceled each card I had with them which was a total of 4 cards ( 2 origional chase cards, and 2 that were wamu ). The last card was actually canceled a couple days ago. So basically chase has probably ruined my credit, and I really did nothing wrong. Honestly in the 6 years I have had all my cards I was only late 4 times ( and I don't even think they consider these lates because each of those were only late by a day ! ). I haven't checked my credit lately, but I know it has had to take a huge plunge because of this. Honestly I don't even know how chase can get away with this, because like I said.. never once was I late and I always paid over minimum payments ( sometimes not much over but still ) in addition I also paid off another 3500 loan I had with GE money. I am furious with chase right now, and I don't even know where to begin. I actually have been stashing money away to pay most of my cards off at once, but now that chase has pulled this crap I do not even know how to handle them. I have about 5k in debt between the cards ( none had huge limits to begin with - about 1500-1000 that were cut to 800-500ish before they eventually closed them ) I read a lot about letting the payments go on these before they may offer you a reduced payment option, but the question I have with that is.. won't that make my credit even worse than it already is ? or do you think since they most likely already tanked my credit score for no reason a few more hits won't matter since I will have to rebuild anyways ? I just need some advice on what to do because paying them off in full for scamming me just does not seem appealing right now... Honestly I feel I should be able to sue for something like this, but I am sure this is probably not the case ( even though it should be ). Just need a little help.. sorry if I went off ranting. I also have: 2 hsbc cards discover card capital one card another GE account All if which again I have never been late on... these cards lowered my limits a bit as well, but did not cancel me ( cross fingers ). All off these also have balances over half of the limit after they reduced my limits ( except discover which is almost paid off ). Thanks!
The first thing you need to do is get a FREE copy of your credit report - it will be free if you have not already recieved a copy this year. You can go to the actual bureau site to obtain a copy. Part of the credit card issuer trickery is they have their own 'risk based' scoring, periodically they pull your credit report and analyze your accounts with them. Clearly you have fallen into what they deem a 'higher risk'. These risk scores are usually not documented. My guess is they have done this because your debit-to-income ration may be too high. Additionally, you must watch your credit limits, typically issuers use a 35/65 ratio; if you use 35 percent of your credit limit you are consider 'high risk'. As far as your rates increasing, you need to know when this occurred. The new Unfair and Deceptive Acts and Practices (UDAP) ruling requires them to notify you 45 days in advance of any term changes, you have the right to 'opt-out' and not accept these changes. You must 'opt out' in wrting and when you do you have 5-years to pay your balance in full under the old terms. This is important - double-check your mail to see if they sent you the 'change in terms' as this may be your only recourse. Finally, to answer your question, I would not ignore payments/abandon the accounts - you may need the credit elsewhere and it could also affect employment opportunities. Unfortunately, short of the 'change in terms' letter, you have little recourse here. But do your best to set new expectations. I would write them and request that they explain in specific detail exactly what is going on with these accounts. Remember - YOU ARE THE CUSTOMER, keep this in mind - they are making plenty of money from you. You have every right to understand how they do business. If they explain the situation and you don't understand, write them again - it is important to have a solid understanging. In the end, you may choose to close the accounts and if so, write them a letter that explains exactly why you are closing the account and that you no longer choose them as one of your financial partner as you do not agree with their business practices. It is time we as customers start challenging our financial partners - let them know you are not a "dumb consumer, rather a smart customer" hope this helps and good luck!
Welcome to the forum, and I'm sorry to hear about what you've been going through with your credit cards. Believe me, you're not alone, and Chase isn't the only culprit out there. As new legislation has passed and the consumer credit market keeps getting tighter and tighter, interest rates have risen, limits have been cut across the board, and cards have been closed on many customers that are considered "higher" risk. First, don't get copies of your credit reports from the actual bureau website. Got through annualcreditreport.com, where you can get a free copy from each of the credit reporting agencies. Review your reports and look specifically for any negative marks. A closed account that you were never late on isn't necessarily a negative mark, but it will affect your credit utilization, which accounts for about 30% of your FICO score. You length of credit history may have also been affected. But if you don't have any lates or other negative marks, I doubt your credit score has really tanked. And I agree with Utterbeans - don't ignore the cards with balances. If you've saved up the cash to pay them off, do just that and move on. If you hate Chase now, never do business with them again and tell all your friends why they suck. Keep managing the credit cards you do have wisely, pay your monthly bills in full, add to your available credit with some new cards in a few months, and your credit scores should be back on track as soon as your credit utilization ratio improves again. Good luck!
