I've had a Target Visa with a $6000 credit limit since September 2001. In April 2003, Target lowered my credit limit to $4900 because of a charge-off on my Experian credit report, a charge-off I might add is from 08/1998 and was on my report when they gave me the card. I wrote them and explained this to them, but they refused to raise my credit limit back to its original amount, Fine, I thought. I wasn't using the entire line anyway. But, just last week, I received another letter from them, stating that because of this charge-off on my report, they are now raising my interest rate from 9.99% to 21.99%. Nothing has changed! The charge-off still has the same date on it, same amount, nothing is any different than last April. I also might add that I have a perfect history with Target, always paying on time and more than the minimum, as well as with all of my other current creditors. Is there any sort of legality for them to do this? I haven't defaulted with them or any of my other current creditors, and yet they are punishing for something that happened 6 years ago and was on my report when they gave me the card. Any advice on how I should approach this? Are they really allowed to do this? I mean, I know a current creditor can do anything they want, but can they do this to me? Any legal standpoint I might have? I don't know, just asking for some input. Thanks!
They have the right to revise the criteria for setting your interest rate. The fact that your bad TL didn't matter initially and now does could be explained by tighter criteria over the years. Here's what I would do. If you find the rewards part of the card something worthwhile, fine, but just pay every balance in full, making sure they never see a penny in finance charges. If you don't care about the rewards, I would use that card to ONLY charge at Walmart or any competitor. But never charge a Target purchase again. And if you really want to get their goat, keep the charges very low. They still have to bill you. Costs them money. Just use the card to burn them at their own game. They are attempting to maximize their risk/reward yields on your account. You can play the same game.
Don't they need to tell me about this revision of criteria, if in fact that's why they are doing this to me? I requested a copy of the account terms and conditions be sent to me and see if I can get them through that. Thanks for your suggestions too!
Yep. Very True. JCPenney lowered my CL because of something that was on my CR when I got the card. I just closed it...even after they offered to lower my interest rate AND raise my limit. Or use it to buy a Pepsi 20oz once a month... See DanS's quote above. They only need to send you a letter stating why the changes will take place and when. JCP sent me a letter and said the changes would take place on the next billing cycle. Most CC contracts state that they reserve the right to change the terms of the agreement. That's why they do AR's (soft inquiries) on our reports.
Gosh, at the rate they're going, Target might just close my account altogether next summer when that bad TL falls off my report!
Same thing happened to a friend of mine last summer. With a bk-7 on file she was approved with a 6k CL. I thing the bk-7 was in the 6th year. At any rate Target Visa chopped her CL to 2k. Of course she paid off the balance and has not used the card since Aug. of 2003. When she shops at Target she used another cc. Best regards, Mirage
Re: Re: Target Visa crap...advice please? Years ago I kept applying to Sears because they offer you $5 off for applying and even though I got turned down, I kept trying because I heard the card was "hard to get". Obviously, I knew nothing about hard inquiries. Now when I shop at Sears and the salesperson asks if I want to apply for their card, I proclaim as loudly as possible "There was a time I wanted to get your credit card but Sears didn't think I was GOOD ENOUGH for them, so there's no point in trying is there? That would be like begging my ex-wife to take me back and that's just sorta... pathetic, isn't it? Tell you what, how about if I pay you with a credit card from another company that charges me reasonable interest rates, provides lots of great services, gives me a percentage of my purchase back, allows me to use my card anywhere I'd like and really seems to like doing business with me. That would be like ending up with a younger, prettier girlfriend and that's sorta... poetic, isn't it? Here ya go.." The bigger the line is, the bigger the laugh. Does Sears care? Nope. Does everyone identify? I think so, even the sales people. Do I enjoy it? Oh yeah... Now imagine me on line at Target using some other credit card... fun...
I love this idea!!! I am going to make a note for future reference! The next time one of my CC issuers pulls something like this I'm going to give as good as I get!!! Thanks for making my day!
You're not the only one they did it to.. so unfortunately there's not much you can do. I'm in the same boat and am just as frustrated. I called to cancel and they gave me something about doing so in writing.. and that gave me time to cool off. Pay it off in full. Don't let them make any more money on you at all. They're guessing you'll pay the higher interest rate (can't pay it off).. let them be wrong. Don't close the account. you've had it for a while. Ride it out. Pay it off. Go buy a Pepsi or a pack of gum once a month, keep it active, make them mail you a statement... pay your .25 or 1.25 online. Use them to keep your ratios in tact and to keep the trade line aging....
