GL1800Riders Forums banner

21 - 40 of 42 Posts

·
Registered
Joined
·
691 Posts
CC companies like people like you because you can afford to pay more. They figure people who earn more can pay more. Good Credit ratings doesn't always bring the lowest rates on loans,or change the deals they offer after they have you hooked. You did the right thing by paying it off.
 

·
Registered
Joined
·
354 Posts
What Rob said above. I have a card and my wife has a separate card. Last month we received a notice from both of them VISA and Mastercard(the fine print tri-folds you normally throw away) stating due to the present economic envirornment, there are forced to raise their interest rates. You have the option of doing nothing and the rate will increase automatically and you can continue to use the account or you can "opt-out" by writing or calling. Normally if you "opt-out" the interest rate will remain as it was before but the account will be closed for any new transactions. I pay my credit card off each month so I opted out of that one (will get a lower interest card from another place) but my wife wanted to keep her's so we did nothing about that one (went up 2%).
 

·
Registered
Joined
·
895 Posts
Ironic results...

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.
As an ex-banker, I agree with your assessment of what is happening to interest rates on credit cards. But I've never been able to wrap my head around the irony that the banks know that increased rates will actually accelerate credit card defaults for those people who are marginally sound financially. I guess the theory is that, with higher rates, people will quit charging and the banks will have limited their loss potential. Nice theory but raising rates actually pushes many over the cliff. Maybe this is why I'm not in banking any more.
 

·
Registered
Joined
·
19,947 Posts
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.
There are many things wrong with that statement. In fact, none of it is true. The state of Ohio did not go broke, and they didn't default on any payments. It was just their Unemployment fund that ran out of money. They are still paying benefits from the general fund. And they aren't getting a bailout from the Fed (aka handout). They applied for a loan from the US government.
 

·
Registered
Joined
·
19,947 Posts
Those convenience checks go straight into the shredder when I open my mail.

If you check further, you will probably find that you also paid a fee for using those checks. They are usually considered a cash advance.
 

·
Registered
Joined
·
747 Posts
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.

Sorry to disagree: How many times have all of us received solicitations in the mail from credit card companies accompanied by checks that all we have to do is activate the account and simply use the checks. Most have a very low "teaser" rate that expires within a very short period of time. Credit card companies are not in the business of lending money at 4%. One has to be cautious of the "really good deal", often times it leads to the "really bad deal". The really savy person(the originator of this thread) takes advantage of the teaser rate and then pays off the loan when it excellerates. That is a great way to use other people's money to our advantage. We live in a world of folks and companies that like to take advantage of our failure to FULLY READ THE FINE PRINT. In addition to the above; how many times are we offered initial low rates or an additional 10% off the first purchase to accept a department stores credit card? What happened above IMO is a very common occurance. We just need to be more vigilant and take advantage when we can. :yes1:
 

·
Registered
Joined
·
2,581 Posts
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:

.
.
.
.
Confused in Connecticut
Bozo,

I'm sorry you got duped.

Please click on TANSTAAFL

If you abide by the philosophy of TANSTAAFL, you'll never go astray!

I've never seen this principle violated......not once.
 

·
Registered
Joined
·
3,508 Posts
Turn on late night tv, There's a guy out there saying you can get your CC bebt erased and pay nothing! Except to him for telling you how to do it lol

Banks = Legalized robbery

And many CC companies are dropping people who seldom/ never carry a balance!
 

·
Registered
Joined
·
4,179 Posts
They did it because they're Chase. I've heard they're starting to add a $10 monthly fee on accounts, no matter how long or good of a customer you've been. I just fund out one of my cards account was sold to Chase and will take it over next month. It's been a 0% interest for 3 years. Lord knows what'll happen on their end, but for us, the account will be closed and paid off ASAP. If Chase can find a way to screw with their customers, they will.
 

·
Registered
Joined
·
1,997 Posts
Five years ago, I was told by Chase that I was a credit risk. The reason? Because I had previously paid off two auto loans EARLY. Yep, they don't want you to pay early, they want you to run the loans out to their complete duration ($$$ for them) Most people think that being a credit risk means that the bank is only worried that you won't or can't pay....but you can also be a credit risk if you pay too early as well..... its all about the risk to their money....their principal and their forcasted income (interest). Sux don't it?
 

·
Registered
Joined
·
211 Posts
Chase did the same thing to me, raised interest rate to 10.9%. I payed the balance in full. Now all my purchases, Dr.s visit's, groceries, fuel, bills, basically any expense I would normally pay cash for is charged to that account. When I get the statement of 2-3K each month I pay it off immediately, I know they hate that and it kinda makes me feel all warm inside. I won't forget what Chase or any other bank that has screwed me has done in the past. I figure their time is coming. I hope they all fold. My financial future will not include any credit purchases that can't be payed off when the statement arrives. When the majority operates this way what are they gonna do?
 

·
Registered
Joined
·
1,566 Posts
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.
+1...

I purchased my Suzuki Katana in '05 with the same deal...you only had to pay $99.00 a month....however...if it wasn't paid off by the due date the interest & payments went up significantly. I paid mine off 2 years early.:thumbup:

I hope this helps.....

Mark
 

·
Registered
Joined
·
948 Posts
If you have to do credit, Don't buy it.

If you knew what Banks and Credit cards get away with................. you would be like me, if I can't afford to pay cash, I don't buy it.

I do not have any loans and never will.

Smart guy!!:agree:
 

·
Registered
Joined
·
282 Posts
I did the same thing but it was at 0% for 12 months. So I make the normal payments I would be to pay it off in 5 years so I don't get it dragged out any longer. I have been bouncing it at 0% for the last three years with no problems and the transfer fees were cheaper then paying any type of interest that was out there cause I didn't pay alot for my 03. It was a win-win for me.
 

·
Registered
Joined
·
3,382 Posts
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:
Confused in Connecticut
The money they made from other customers by raising the interest more than covered the loss of one account. Everything now is about MONEY.
 

·
Registered
Joined
·
2,530 Posts
Capital One raised our rate from 8.99% to 24.3%:22yikes:

I quickly paid off the entire balance and cancelled the account

One does need a credit card for some transactions (internet purchases etc) but within one month we will have ZERO credit card balances...and I aim to keep it that way
 
L

·
Guest
Joined
·
0 Posts
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 …...
It is very simple... Banks all over the world are failing. Banks need money real bad and they don't care at all about "really good customers".
 

·
Registered
Joined
·
5,173 Posts
Credit cards are a must have. I have one that is company issues, and one of my own. I always pay them off every month. I'm not one for preaching (okay, my wife doesn't agree with that), but this is the one thing I will preach on. Credit card debt is bad thing. I realize that is not the case here, but just my 2 cents worth. I never pay any attention to the notices I get from my CC company because I don't ever come near the max and I have no problem paying it every month.

As to Chase - I use them for my checking account and very small savings account. They have never been friendly to individuals in my opinion. Their message seems to be "we'll take your business, but we really only care about commercial business". In fairness, service from their on-line banking center has been outstanding. Not so much in other areas of their customer service.

Anyone familiar with Guaranty Savings? They are right down the street from me and I'm thinking of setting up another account with them and phasing out of Chase.
 

·
Registered
Joined
·
603 Posts
begin rant:

No disrespect intended, but this sounds similar to the families who purchased homes with Adjustable Rate Mortgages. Economic situations changes, their interest rates reset, and they were placed in undesireable positions.

I'm sure most of these people were wonderful folks you would be proud to sit next to in church, but they did not achieve a satisfactory understanding of the financial dealings into which they were entering. True, they were many times taken advantage of by lenders, but at then end of the day it's the buyer's responsibility to understand what they are geting involved with and make wise decisions accordingly.

A fair portion of the nation's troubles are the result of people expecting someone else to look out for their welfare and assume responsibility when they fail to exercise personal responsibility.

end rant:

whew, I feel a lot better now:lol:
 
H

·
Guest
Joined
·
0 Posts
Do a Google search and you will see a lot of credit card companies are paying people to cancel their accounts. The whole dynamic has changed. Now their top priority is getting the accounts paid off and they would rather not loan you anymore money.
 
21 - 40 of 42 Posts
Top