I just got a notice that Chase is jacking my rate up from 12% to 26.54%! I am so pissed! They really wouldn't even give me a reason when I called them on it! The strange thing is that Discover just lowered my APR and increase my CL. I am going to close my account to keep my current rate. First, how will a closed account with a balance effect my score? Second, does Chase have to note my account "closed at consumer's request" since I am the one asking for it to be closed? Thanks!
Send them a written request for their reason. They legally have to provide it, particularly if their decision is based on information obtained from credit reports. It is called an Adverse Action Notice. It should indicate which credit report's information was used in their decision, so that you can request a free copy of that credit report and dispute any erroneous information it may contain.
If you are rejecting Chase's "new" credit terms, just keep the letter from Chase and send a CMRR letter that states you are rejecting the new terms, which keeps your interest rate XX%. It would also be worthwhile to request, in a second letter, an Adverse Action Notice, too.
How will this closed account with a balance affect my score? Do they have to listed it "closed by consumer" since I requested it to be closed?
If you send a written request to have an account "closed by consumer", that's how it should be listed on the credit reports. Is this a high credit limit account? Do you have a marginal, overall credit profile? You may want to just write to Chase, decline the new account terms, and just sockdrawer the card.
