Does Chase charge everyone now if they have low interest cards?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
13 posts
1bootcamp
Centurion Member
Centurion Member
 
Posts: 103
Joined: Wed Apr 16, 2008 2:07 pm
Location: Big Island, Hawaii

Does Chase charge everyone now if they have low interest cards?

Postby 1bootcamp » Sun Feb 15, 2009 9:03 pm

I have heard quite a bit of uproar about Chase charging customers a monthly fee of $10 ($120 a year) if they have an existing credit card with Chase that has a low interest rate. From what I hear it sounds like that also includes promotional rates too like balance transfer signup offers and special rates for "until paid in full" balances.

What load of bull is this? I want to know if this is applied to only those with bad credit or if they are doing it to everyone that has a low interest rate.


Multi-Purpose
Centurion Member
Centurion Member
 
Posts: 102
Joined: Tue Apr 29, 2008 7:53 pm
Location: Somewhere in So Cal

Postby Multi-Purpose » Sun Feb 15, 2009 10:52 pm

I think there's more to it than that. You have to have a low interest rate and a high credit utilization rate. At least that's what I heard about this Chase fiasco so far.
[font=Comic Sans MS]Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.
-Barack Obama[/font]

DGenerateKane
Centurion Member
Centurion Member
 
Posts: 108
Joined: Wed Jan 14, 2009 5:59 pm
Location: Earth

Postby DGenerateKane » Mon Feb 16, 2009 8:24 pm

I don't know what low is but I currently have something like 10.99%, the lowest of all my credit cards and Chase has never charged me. I however have never had high credit utilization.

User avatar
Cucumber
Centurion Member
Centurion Member
 
Posts: 567
Joined: Tue Apr 22, 2008 12:44 am
Location: Zuma

Postby Cucumber » Wed Feb 18, 2009 3:01 am

I could be wrong but I think they are only punishing those with promo low interest rates. If you have a low interest just because you have good credit and that's your normal rate I don't think they dock you. At least that's what I've heard so far...
OBAMA
Stop talking crap about him!

bozell
Platinum Member
Platinum Member
 
Posts: 56
Joined: Mon Jun 30, 2008 9:46 pm
Location: c-town

Postby bozell » Thu Feb 19, 2009 3:10 am

in protest you should close your chase credit card if they do this to you. why support a company that does a thing like that!!!

to the guy that has a 10.99 rate you are lucky that has not been raised through the roof yet. most of us have had our low interest rate credit cards go up, up and UP lately way above 10%

DGenerateKane
Centurion Member
Centurion Member
 
Posts: 108
Joined: Wed Jan 14, 2009 5:59 pm
Location: Earth

Postby DGenerateKane » Thu Feb 19, 2009 4:31 pm

I just checked my APR again and it has dropped to 10.24. Not that it matters to me since I always pay my bill in full every month.

RCNitro
Green Member
Green Member
 
Posts: 4
Joined: Sat Jan 17, 2009 12:56 pm
Location: California

Chasing Chase VISA

Postby RCNitro » Mon Mar 16, 2009 6:52 pm

My Chase VISA experience initiated a $10 fee and 5% minumum monthly after several transfers of 2.99% to 4.99%, all offered "until the balance is paid". I quit transferring when the transfer fee was no longer 3% or $50 (or $75 or $99)...now it's a flat 3% fee, $30 per $1,000 transferred. My credit utilization is usually high on this card, and this card only. Paying down higher interest first and pay Chase' 2% minimums seemed okay at such low rates, but 5% minimum is forcing me to pay this low interest first, AND the $10 monthly fee adds to a much higher percentage rate balance (to be paid later of course). Well, I'm keeping up, but there's got to be a point that I stop paying $120 annual for a card that I'll probably never use again, and closing this account would really crash my credit. Chase' alternative offer to me is waive $10 fee, 2% minimum payment, but all balances adjust to 7.99%. I was told that I have until the end of March '09 to accept, but it looks like they did it already anyway. I'm not proud of this situation, but I'm learning and paying. Somehow the banks still win though... :(

teddyd
Green Member
Green Member
 
Posts: 3
Joined: Thu Mar 12, 2009 1:51 pm
Location: ohio

Postby teddyd » Mon Mar 16, 2009 10:16 pm

I never like balance transfer offers that charge a fixed rate like your 3% because they are collecting all that money up front. I don't know how they get away with this fee.

This transfer fee is pure profit on their part. So you pay the 3% transfer fee, but if rate is 4% you actually have a 7% interest rate. You may not be saving that much since all the money is paid up front vs. spread throughout year where you may actually lower your balance.

User avatar
fffresh
Centurion Member
Centurion Member
 
Posts: 416
Joined: Sat Apr 26, 2008 9:12 pm
Location: the edge of the world

Postby fffresh » Tue Mar 17, 2009 2:18 pm

Indeed the $10 monthly fee is taking a no annual fee credit card and turning it into a Chase credit card with a $120 annual fee. Unless the balance is of an extremely high dollar value, and the interest rate is extremely low, there are probably better options out there to transfer balances. The difficulty with transferring balances now however is that what was considered an average balance previously, many creditors now look at as high, and hence, will now issue credit lines to new customers in that amount.

And yes, many do not consider the balance transfer fee thoroughly enough. If the balance transfer offer is only for 6 or 9 months and is above 0%, once you add in the 3% or 4% fee, there probably is little incentive in taking advantage of it.

RCNitro
Green Member
Green Member
 
Posts: 4
Joined: Sat Jan 17, 2009 12:56 pm
Location: California

Chase Visa Update

Postby RCNitro » Fri Mar 27, 2009 10:50 am

Update to my Chase Visa with low (3-5%) balance transfers: Chase has credited the $10 fees, returned my minimum monthly to 2%, and left my interest rates unchanged! I did complain when my minimum was raised to 5%, forcing me to pay my lowest rate card first, but now they've reverted everything back for me and provided the following:

In reviewing your account, we discovered that you were incorrectly sent a Change in Terms notice this past November. As a result, you may have been charged a $10 monthly account service charge(s) and your minimum payment due was changed to 5% of your New Balance.

We have already taken action to correct the terms on your account. We have credited your account for the $10 monthly account service charge(s). With your next billing statement, your minimum payment due will revert to its previous calculation of either 2% of your New Balance or 1% of your New Balance plus billed interest and any billed late fees. In addition, we set your promotional rate balance(s)--with no defined expiration date--back to its original terms. As always, your account remains subject to all terms and conditions, including default APR actions, as outlined in your Cardmember Agreement.

Your satisfaction is important to us, and we apologize for the error and any inconvenience this issue may have caused you. If you have any questions, please call us....



Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 2 guests