BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
Two weeks ago I was informed that my Chase credit card, a card I've had for around 15 years, was closed. I was told that I don't use the card enough and that I was "costing Chase money." I'm sure my FICO will be negatively affected . . . Thanks Chase! :shoot:
Many of my investor friends have told me that their credit lines have been cut, interest rates boosted, and I've heard plenty of other stories from people with good to great credit of credit woes thanks to (Pick one or all: the economy, greedy banks, Congress & the Obama Administration, Bush, Fill in the blank ________).
Have You Had Your Credit Affected thanks to the Downturn?
The only effect that I felt was about four months ago when Citi notified me that they are jacking up my interest from 7.5% to 14% and when I called to protest, they blamed it on "Recent economic developments" - I paid off my balance (Which was at the time about $2,700 out of $20,000 LOC) and that was that. I've been using the card since but I try to pay the balance on a monthly basis.
I had a WAMU HELOC that was cut from $150k to $50k then closed all together. Shortly after that they went out of business, that’s what they get for messing with me! My AMEX card was what cut from a limit of $27k to $10k, if they close it I’ll get them too. I just received a notice from BOA that my 7.9% fixed card is being changed to a variable rate as of August 1st, fortunately the balance on that card is $0.
Get used to seeing more of this. The credit card “reform†bill was designed to give the banks a year to change the terms so that everyone is screwed.
We got a chance to chat about that in Vegas a bit, didn't we Rich. The "reform" bill is going to end up being one of the worst pieces of legislation for the consumer we've ever seen.
No affect here. My sizeable HELOC remains in place and my credit cards unchanged. Though I never carry a balance so short of them closing my account, I wouldn't feel a change on my credit card. In fact, I'm the one more likely to take my business elsewhere so that I can get better rewards.
Tom - The CC companies are also closing accounts for people who pay their balances in full every month . . . I wouldn't be surprised to hear that they closed you down for that very reason -- for your sake, I hope you manage to avoid the siege. Thanks for sharing!
I've had my chase HELOC closed and my Amex card cut way down. If my other cards have changed, I threw those letters away in the mail. As long as the home depot card stays pat, I'll survive. :)
Get used to seeing more of this. The credit card “reform†bill was designed to give the banks a year to change the terms so that everyone is screwed.
Watch for the Monday (July 13th) post on the BP Real Estate Dispatch for more on this.
Posted by J. Dorkin:
"The "reform" bill is going to end up being one of the worst pieces of legislation for the consumer we've ever seen."
______________________________________________
I disagree. The previous status quo was terrible to consumers with CC companies practically doing whatever they want. The lured consumers (Especially the young and inexperienced) with low introductory rates and then changed to rules of the game and jacked up interest. If you didn't like it you could cancel the card and pay the balance under the old contract, but it would hurt your FICO. They also made it almost impossible for the average consumer to compare different credit cards. Pretty much like buying a mattress... :wink:
The biggest problem with the current bill is that the lobbyists managed to get that "One year adjustment" which the CC companies can do whatever the want. The should have given them no more then 90 days.
They should have given them 0 days. The law should have gone into effect immediately, so the CC companies wouldn't have the opportunity to screw the consumer like they are doing now, Eddie.
Oh, I agree with that completely, I just don't think it would be realistic knowing the power of those CC companies. Lets wait for the next wave of defaults - The CC default which already started. I'm sure there will be a bailout for that one too. :mrgreen:
Citi recently sent me a notice of change in terms on my AAdvantage card. I don't normally pay attention to them because they typically don't affect me. They changed my rate from 8.9% to almost 16%. I had the right to opt out, which I did. I've had that card for nine years and I used it a lot! My husband and I flew business class to Maui on miles I earned flying plus miles I earned using that card. Just recently, I bought five first class tickets to Miami on miles earned mostly from purchases on that card. So much for being a loyal customer.
Just replace the "C" in Citi with "Sh". That's what I think of them.
Citi recently sent me a notice of change in terms on my AAdvantage card. I don't normally pay attention to them because they typically don't affect me. They changed my rate from 8.9% to almost 16%.
Few people actually read those changes and the banks are counting on that here. I never paid much attention either until the recent law. A lot of people are going to get hurt because they don't pay attention. So much for not bowing to the special interest. This is the "change" we can believe in? No, but it is the one I expected.
I had chase change payoff amount from 2% to 5% on $17000. I had AMEX slash my available in half and BOA Slashed by 40%. I took a loan out from my mom to get all things off my credit and even paid off my car the previous month. I then got a letter from Capital One slashing my line in hal because of too much debt on my name. They sent this to me a month after I paid everything off. They slash it after I pay off $30,000 and a car. Banks are run my crooks. My wife has never had a card is now getting offers with $300 initial line. But after the first statement she will only have $31 available because the rest are fees to open they want $269 to open a credit card with a300 available line. What the hell is going on. This is insane.
I had chase change payoff amount from 2% to 5% on $17000. I had AMEX slash my available in half and BOA Slashed by 40%. I took a loan out from my mom to get all things off my credit and even paid off my car the previous month. I then got a letter from Capital One slashing my line in hal because of too much debt on my name. They sent this to me a month after I paid everything off. They slash it after I pay off $30,000 and a car. Banks are run my crooks. My wife has never had a card is now getting offers with $300 initial line. But after the first statement she will only have $31 available because the rest are fees to open they want $269 to open a credit card with a300 available line. What the hell is going on. This is insane.
The "Banksters" as I like to call them, alot of my clients are having the same problem. Glad I have alternatives for them.
CHASE really seems to be hitting their 'customers' hard. my dad actually called me up yesterday and his cc was slashed from 3000 to 250 (and he only had a 200 balance). he's closing it. i told him that if he didn't owe them the 200 then they would have just closed it.
i used to work for wamu. wamu bought out providian (which was shadey) and then chase took over wamu (from the fdic as we all know). chase is trying to limit their potential losses so that is why they are slashing and closing.
i read that amex was paying some of their customers $300 to payoff and close their accts.....nice
Chase closed 2 of my cards. $8500 available but $0 used. Screw them
That the problem. You didn't use them. It cost CC to keep your account open and if you don't use it, it is not profitable. You should have used them and pay the balance every month.