[bozodriver]

I financed my 2007 Wing by writing a “credit card check” because the interest was 3.99% and you just couldn’t get cheaper money anywhere. Now I get a notice in the mail that the bank (Chase) is raising the interest to 10.99% and it just doesn’t make any sense to me .. I’m a really great customer ! My typical payment is 10 times what the minimum payment would be every month. Luckily the balance is down to where I can write a check and pay the darn thing off. BUT .. I just don’t understand why the bank would be doing this sort of thing to a really great customer. When talking to a representative of the bank just now, I explained that I’d be writing a check to pay off the balance and then closing the account ! He (the account manager) said he was sorry but that’s just the way it is.

Can someone please explain the logic in this move by the bank .. they just don’t seem to care about loosing a really good customer …... :wrong:

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Confused in Connecticut

 

[bluestreek-02]

The whole banking thing is bad I left one bank to because I did not like what they were doing :coffee1:they will pay for all of this later :wrong:

 

[Bartman]

Most of the time, those "Convenience Checks" have a limited time on the low interest rate. 6, 12 or 18 months is typical. BT's or "Balance Transfer" offers from some banks can have a longer duration. It's not unusual to see a low interest rate until the balance is paid off on those type of offers.

I bet if you go back and read the "Terms and Conditions" on that offer, you'll find the answer you're looking for. Or better yet, call Chase and ask them why the interest changed.

 

[twodogs1800]

Because of the new rules the government just passed that go into effect next year that limits what the creditors can and cant do as far as screwing customers by raising rates for no reason, I think most of them will do it now before the laws go into effect. I have had one do it already myself. Screw us anyway they can.

 

[LD_RIDER]

I financed my 2007 Wing by writing a “credit card check” because the interest was 3.99% and you just couldn’t get cheaper money anywhere. Now I get a notice in the mail that the bank (Chase) is raising the interest to 10.99% and it just doesn’t make any sense to me ..

I have no idea what your original terms were. But.....typically, if your credit card raises interest rates, you have the option to <opt-out>. Legally, what this does is freeze your <current> interest rate, but in effect, the account is closed since you can no longer use your card. Any balances are paid at the original interest rate. Read the fine print on the back of the letter.

The preceeding does NOT apply if you indeed used a <limited-time> promotional APR on a credit card check. Note that just because you used a credit card check does not preclude the interest rate from being fixed. For example, I had 25K on a BofA <credit card check> that was fixed at 5.99% for the life of the loan.

Somebody has to pay the bank for all those knuckleheads that over-extended themselves on home mortgages...Might as well be you!

 

[FredGarvin]

Most of the time, those "Convenience Checks" have a limited time on the low interest rate. 6, 12 or 18 months is typical. BT's or "Balance Transfer" offers from some banks can have a longer duration. It's not unusual to see a low interest rate until the balance is paid off on those type of offers.

I bet if you go back and read the "Terms and Conditions" on that offer, you'll find the answer you're looking for. Or better yet, call Chase and ask them why the interest changed.

this is my thinking as well. Read the material that came with it. That will explain what they can and cannot do. Banks are in a survival mode, losing 1 customer (or even 1,000) isn't a big deal given what the interest rate (times a few million customers) increase means to their bottom line.

 

[LD_RIDER]

Because of the new rules the government just passed that go into effect next year that limits what the creditors can and cant do as far as screwing customers by raising rates for no reason, I think most of them will do it now before the laws go into effect.

:agree:

 

[rdm1465]

I think you wrote a Credit Card check that had a limited amount of time. Especially with that kind of a jump.

 

[DaleC]

Why do they (credit card companies) do that?

Because they are wolves in sheep clothing.

DaleC

 

[BubbaJ]

exatly, I avoid credit cards like the plauge. I have 1 and when I use it I pay it off immediatley. They don't like me for that but that is how I do it.

:doorag:

 

[BigDaddyGoldwing]

Actually, this is being done across the board even to people with excellent credit ratings because of the current economic conditions. The banks credit defaults has risen sharply and they knew full well how over extended they were given the more than generous credit they make available even to people that cannot afford it. So, because of those people that are defaulting on their credit cards we all have to suffer with higher rates.

If and when they raise my rate, they will immediately become history!

 

[Bentwing]

All of the statements below are true depending on the type of card and the issuer of the card. It sounds to me like the low rate was probably an introductory rate that was bumped once that intro period was over. I has nothing to do with your credit or how you pay. You have to read the fine print very carefully....Credit cards are fine as long you really understand the rules. ..

The secret here is to learn the rules and be so disciplined that it winds up being your game and not theirs.....

 

[3putt]

Looks to me like you received an introductry "teaser" rate that they can change after a stated period of time. 4% is a great rate and you should know that no credit card company is going to do that for any length of time. Actually 11% for a credit card company is OK also. The best thing you can do is pay it off and move on. IMO nobody is screwing you; its just business. You took advantage of the low rate-be happy.

 

[Roadie]

I explained that I’d be writing a check to pay off the balance and then closing the account ! He (the account manager) said he was sorry but that’s just the way it is.

I would just pay off the account, but I wouldn't close the credit account. You would only be hurting yourself closing the account, because that will cause you to have a lower credit rating.

 

[scattergunjake]

It's simple, they do it because it's their money and they can!

 

[bozodriver]

I would just pay off the account, but I wouldn't close the credit account. You would only be hurting yourself closing the account, because that will cause you to have a lower credit rating.

AND .. that is exactly what I have decided to do.
Pay it off .. and keep it .. in the drawer.

Thanks for all the responces .. :bow:

 

[Motor City]

This is a big scam that they have been pulling lately. One of the news reporters here in Detroit did a story on this a couple of weeks ago.
What will happen is they will raise the intrest amount plus lower your line of credit.
The bad news here is if you have any ballances with these companys it will reflect your credit rating as a higher debt to income score. The botton line is, Your credit score will go down and things like your auto and home insurance will cost more because they look at your credit score as part of the formula to figure your preminum payment. :thumbup:

 

[laen]

Credit card companies sux. Pay it off and count your savings$$$$$$

The only one I carry is American Express which has no interest and I pay it off monthly

 

[BigDaddyGoldwing]

I think you all need to give bozodriver a little more credit (no pun intended). I'm sure it wasn't a teaser rate with a limited time frame because I think he or anyone else would be smart enough to read the fine print on a credit loan of 10 or 20 large or whatever the amount financed. The fact of the matter is, as has been reported on the news for the last several months, that banks have extremely over extended the credit lines to their customers for years but the default rate has risen exponentially along with the mortgage defaults and pink slips going on across the country. The banks (who own the credit cards) have already taken a bath on mortgage defaults with more yet to come and now the credit defaults are the going to be the next big shoe to drop. Chase was one of the largest credit card companies that realized the only thing left to do is to cut peoples credit limits and raise the credit rates in order to limit future defaults and make up for the larger number of credit defaults growing each and every day. The worst is yet to come. The state of Ohio went broke this month and couldn't supply the funds needed to pay out the states unemployment checks requiring and emergency bail out from our federal government of $500 million. This is a scary time for all of us.

 

[DavidinKy]

I financed my 2007 Wing by writing a “credit card check” because the interest was 3.99% and you just couldn’t get cheaper money anywhere. Now I get a notice in the mail that the bank (Chase) is raising the interest to 10.99% and it just doesn’t make any sense to me .. I’m a really great customer ! My typical payment is 10 times what the minimum payment would be every month. Luckily the balance is down to where I can write a check and pay the darn thing off. BUT .. I just don’t understand why the bank would be doing this sort of thing to a really great customer. When talking to a representative of the bank just now, I explained that I’d be writing a check to pay off the balance and then closing the account ! He (the account manager) said he was sorry but that’s just the way it is.

Can someone please explain the logic in this move by the bank .. they just don’t seem to care about loosing a really good customer …... :wrong:

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Confused in Connecticut

My experience with Chase is they don't even care, very rude service reps. I too cancelled my M/C, I always paid off each month, didn't need anyway. As for paying off you wing, just write 1 big check, works for me.