General > General info Somewhat hot tub related
Watch your credit cards
ndabunka:
Bonnie - Don't "close" the credit card accounts. Just pay them off and leave the card in a desk drawer. You won't care WHAT they do with the intereste rates because you won't owe them anything on those cards. Late payments on Zero = zero so who cares. Keeping them "open" but unused gives your credit score those dollars as "potential" credit and is a good thing (even for a crappy company like Chase).
On the Mortgages... For those who may not be aware a number of companies (including North Carolina's BB&T) had 30 year re-finance rates as low as 4.75% (with no points for well qualified owners) about 3 weeks ago. My current 30-year is about 7 years in and is at 5.375% so it would take one of the 4.5%'s to get my interest and they may still get there (at least that is what the government is trying to influence). Typically, the 30yr rates follow the gov't treasury bills about 2 points higher (MAX) and that allows the banks the ability to make decent money (basically for free). However, the spread TODAY (and for the past 2 months) has been closer to 3 points which means that the banks are making/charging more than they SHOULD be for 30 year loans (to excellent credit owners). Greedy SOB's.
So, I have a salivating mort broker as well watching the rates ready to call me once they get close to 4.75% again. I really want to (hopefully) wait until the 4.5% target becomes a reality but I expect that if it does, it will be one of those things that is only viable for about 2 days before it disappears again. And even then will require things like 35% equity in home, 740+ credit rating, 5yr Income history, etc. All within range for good, responsible borrowers... theoretically...
Bonibelle:
But Nada, they are going to charge me $120.00 year just to have that card sitting in my desk!
And I am betting that is why they started that because they know that people don't want to damage their credit ratings by closing accounts.
Seriously, if you can join a credit union, that is your best bet. I called for an equity line to pay off all my debt and the current variable rate is 2.5%...I am making more than that in CD's..right now, so that is really a bargain.
thearm:
Boni,
You are right in cancelling the card. I had the same thing happen with chase. I used the card once to get a $50 rebate and never used it again. I happened to open another chase account for a rebate and when I went to pay it off I noticed there was a charge on the other card. When I called to check on this they told me they had instituted a annual charge! I never checked the statement because I had only used it once and then payed it off. Be sure and check all of your cc statements because I am sure soon everyone will be following suit. Also you are right on with jointing a credit union. The one I am a member of and have my mortgage with gave a rebate based on how much interest you paid during the year because they had a great year. Never see any banks do this. They just want you and me to give them more money in a bailout. :(
Richs100:
Boni, I am not at all surprised with your experience with Chase. I did a balance transfer on a card at 3.99% for the lifetime of the loan. I then made the mistake of putting that card in my wallet and charged a few minor things the following month which originally totalled about $300.00. I made my usual large monthly payments to pay down the transfer, but after several months I noticed that the overall interest rate on the card had crept up to about 5%. I also noticed that despite my large monthly payments, that $300.00 in purchases was clocking an interest rate of 24.99% and the principal balance on the original $300 was actually increasing each month.
I called Chase and asked them what was going on. They advised that that $300.00 would continue to grow each month and there was nothing I could do about. I told them there was and paid the card off. BTW, I have excellent credit, a good income and relatively little debt. I just don't understand their business model, but I guess it works for them when they are successful in trapping someone who can't afford to get away from them.
Another card I've had for years was recently bought by Chase. I got a notice in the mail this month that the rate was jumping from 9.99% to 23%. I called them and they said it wasn't just me, but everyone with the card was getting the jump. Fortunately, I had a small balance on that one. So, I've now shut down two cards. Way to grow your business, Chase!
So, no more business for Chase from me. They are snakes. And it's too bad that the banks were able to buy off Congress for a delay til 2011 of that Credit Card Bill of Rights which was passed last year. Expect a lot more of this until the law takes effect (or is further watered down).
I am so thankful I have the ability to side-step these arrows. But, with what's happening in our economy right now, I'm sure there are a lot of people who can't, and they will be pushed closer to the edge by these tactics. Hope there's a special room in Hell for these guys!
Rich
Bonibelle:
No one likes to feel alone..Chase thank you, I have tons and tons of Chase customers who have the same situation. http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html
I wrote to Chase and their answer was basically, tough beans we can do whatever we want..
I can too...and I closed that account this morning.. >:(
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