Another thing I've noticed is my score got dinged when my new cards began reporting the minimum balance due as well as the CL's. Unlike my Cap 1 card which does not report the CL or the minimum balance due. I'm sure the software is designed to calculate your APR from your balance due and determine that you are subprime so you get dinged 2 ways - if your CL is too low and your APR is too high.
There's a thread called "Why CNet'rs do the things we do" that has an interesting link. Since I haven't figured out how to do links, all I can say is check that thread and click on the link. A good article on keeping your options open.
Re: Re: Thought credit was A-1 -- Now this! It is a excellent article Hedwig. I used to wonder why credit card co.'s are so anxious for us to BT balances to their card and then close the account? Because with the other account closed you have nowhere to go with that huge balance and with all your money on one card, you can't afford to miss a payment. Btw, if you want to link to an article just copy the url in your browser and place it between the blue code ----> [ url]http://www.url to the article.com[ /url]
Re: Re: Re: Thought credit was A-1 The suggestions people are making about closing the account vs. keeping it and not using it are valid. Try not to let your emotions get involved in your finances. I've made many decisions that were based on "teaching" or "showing" someone a lesson about how to do business and in the end, wound up being the one was taught. Every country, society, culture, family, etc. has its own protocols and rules. Learning what they are and working within them allows us to function. Learning them well enough to leverage the oddities makes our life easier. Of course it sucks that the rules keep changing and so many people are hooked on credit cards that they can do virtually whatever they want - even get the BK laws modified. So we've got to learn to take advantage of the quirks and avoid the edges that *could* hurt us later. I just took my own suggestion and called to get DMB to lower my APR. I've paid them down from $8800 to $5600 in the last two months. Took ten minutes and I got 2 points shaved off. It's still a ghastly 16% but on my current 5600 balance that's over a hundred bucks a year I just saved. They asked if I'd like to have my CL raised, I asked if they could do that w/out an inquiry. Nope, they can't, ok, thanks anyway! I remember hearing when I was a kid that banks like to lend money to people who don't need it. The trick is, IMHO, to look like you don't need the money. Then they'll be begging you to user their services.
StarStuff, You're being "stonewalled", they know you're in the right, but are hoping to wear you down and forget about this (and have you keep on paying the ridiculous rate). My suggestion now is to seek another credit card and do a Balance Transfer. Think about winning the war, not just the battle. You can keep the card "open" if you like, but do not use it. I would recommend that you call and "inquire" your most recent balance, THEN mention you are "considering" a balance transfer", this will hit them where it hurts....lost $$$. I know you're currently unemployed, but most likely another company will not fully verify. They will go straight off your credit report, and assume you are still employed at the listing on your report. Your credit sounds strong enough that another credit card tradeline, inquiry, etc. will not hurt you or your credit. The difference between 9.9% and 23.9% on $1500 WILL hurt. That's over $200 a year they have decided they can get out of you! You have leverage in this matter due to your strong credit. You CAN TAKE YOUR BUSINESS ELSEWHERE! Credit card companies make a huge portion of their income from fees, and "jacked rates" such as this. They were not making "enough" off you at 9.9%. BUT...the idea that they may make NOTHING off you may scare them. Think of your financial self first, move the balance if you can. You can continue the fight, but you have "armored" yourself with "nothing to lose", whereas they will have lost money. Business wise it is 15 times cheaper to retain a customer than win a replacement one. It's like walking away from a relationship, suddenly they'll want you back as you're walking out the door!
Hmmmm ... Very wise advice. You guys are prime rate! All my cards are now locked in my fireproof safe. My sock drawer is full of socks. I still have my trusty Visa check card to give me the convenience of plastic. Kind of like a nicotine patch.
Re: Re: Thought credit was A-1 -- Now this! Good advice but not for his situation. I would just try to pay down the cards. He can always bluff about the BT to another card. But is the loss of $1500 really worth it for them to lower his APR? There's no guarantee he will be approved for another card with a low BT rate and then he's stuck with more inquiries on his report.
He's a she. ;-) Yeah, I understand what Bizwiz is saying and it makes logical sense. Now that I know how the CC companies look at your reports and analyze your usage-to-available-credit ratio, getting balances paid down and/or getting higher CLs makes sense. However, if my credit report shows usage that made Chase kick me into a higher rate, wouldn't my other accounts see the same information and not only deny a transfer (for which I'd have to get a CL increase, since they're all close to their existing limits -- hence my current problem) but possibly follow Chase's lead and jack my rates, too? That's what's got me biting my nails every time the mail comes these days: Am I going to find a 10% or 15% increase on my other cards one of these days?
Credit reports don't show what your APR is. Some companies try to surmise from things like how high your limits are, and may think that Chase raised your APR. If your other companies follow the same rules, when they do their periodic inquiry they may jack your rates, but maybe they won't. Not all companies follow the same rules. The only problem with another inquiry with your cards so highly utilized is that it may make you look desperate, like you're looking for the next card to run up. That could help influence the decision to jack your rates. So, I'd try to work your current cards for increases. Call and ask if they'll give an increase without a hard inquiry. Tell them you have other balances you want to transfer. If someone (like AT&T Universal) offers you a low BT deal and will increase your limit with a transfer, do it and transfer the balance off of your Chase card. Then let Chase know that the only reason you BT'd off their card was that they raised your rates. They may lower, or they may not care. If they don't care, leave them in the safe.
That's probably the best advice at this point. If I were still working, I might feel bolder about pushing for a CL increase. Once I get back to work my priority will be to pay down all of my cards as much as possible and take advantage of some of those special offers from the CRA-checking companies to track my scores until they're more favorable. I'll be dealing from a position of strength then. Not that I can't pull off a good bluff, especially when I go in forearmed. However, though it wasn't (and isn't) right to do what Chase did, for the reasons they did it (or anyway, the reason they claimed), my balances are high and it's not the worst idea in the world to cool my jets and get my debt load paid down. It's true that I don't have the kinds of expenses many people have and can handle the payments on my current debt, even while out of work, but still it's best to owe as little as possible, especially when it's non-investment debt (as opposed to a house, for instance). I enjoy using credit cards but it won't radically alter my lifestyle to tuck them safely away for a while.
Given your situation, I think you've made a wise decision. Good luck with your job hunting and with your credit repair future.
I'm sure the software the CC companies use can calculate what the APR is from the balance due and the CL. Btw, sorry StarStuff for mistaking you for a man. I wouldn't want to be a man for a hundred million bucks! What a horrible thought, huh?
Re: Thought credit was A-1 -- Now t Don't worry about it, SoParkDiva. Probably you never dreamed a woman could be so woefully ignorant! ;-D
I don't see how you can calculate the APR from balance and payment. Minimum payment is usually a certain percentage of balance. The higher the rate, the less on the balance. But if you are currently using the card, you are changing balance constantly. If the account were closed, they could look at the change in balance each month and perhaps figure it, but I don't see how you can on an active account. Even on a closed account, if you're paying more than the minimum I don't see how they can figure it. I pay my accounts every month (except a few low APR BT accounts). So my balance may show $1,000; $1,700; $1,100. I think they show minimum payment but not what you actually paid. This is one of the problems, FICO thinks I'm carrying a balance when I'm not. If they showed what was actually paid it would be easy for creditors to know you pay every month. But ask anyone who has applied for a mortgage recently--if they think your balance is too high, you may have to show them your receipts showing that you pay in full.
I don't see why this is so dificult. I guess no one here took algebra. You have CL of $2,000, you take the balance owed reported for that month which is $500 and the minimum payment due which is, say $15.00. Are you saying computer software designed for that purpose could not figure out what your APR is from that information? Thank you
That jerk on MSN who referred to creditnet suggested that our advice would be not to make payments on the account. What an idiot! Just the kind of person who would post on Bill Gates' message board.
But the minimum payment is usually the same percentage, regardless of interest rate. The lower the rate, the more goes to principal. My minimum payment is the same on my 3.9% account as it is for the same balance on my 7.9% account, because it's the same PERCENT OF BALANCE OWED. I'll just pay off the balance on the 3.9% account much more quickly. On an open account, you are using it and the balance is constantly changing (or that would have to be the assumption, anyway). So you can't assume that the change in balance is the amount paid on the principal. I could have charged some and paid more than minimum. I could have charged and paid minimum. I could have charged nothing and paid more than minimum. All of these could lead to the same balance and minimum payment info on my credit report. Even if it's closed, I could pay more than the minimum and if you took change in balance you still wouldn't get the correct APR.
Re: Re: Thought credit was A-1 -- Now this! i = p x r x t interest = Principal x Rate x Time (periods) Lets say: you and I have ABC credit card. We both have a 2000 balance and a 4000 credit limit. ABC requires 10% of the balance as minimum payments. Both our payments would be $200, but it is conceivable since Diva has scores in the 700's her interest rate = 4%, while my lowly 600 = 12%. We both pay the same amount each month, you just get yours paid off faster. Without time periods (which aren't reported) there is no way to calculate your interest rate. LOL to really drive ourselves really crazy we could throw George into the mix. He has a 2000 balance. $1000 is a bt at 1% (of course), and 1,000 is at 5% (because he never gets the lowest rate). His payments are still $200 a month! There is not enough information in a cr for a creditor to disseminate our interest rates.
