Aspire Visa

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magyar1045
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Aspire Visa

Postby magyar1045 » Mon Nov 17, 2008 4:26 pm

Aspire Visa - a credit card affiliated with a bank in Atlanta, is being discontinued.
In their notification letters to customers they say that the limits of these cards will be reduced to the current balances. But that they will keep on sending monthly statements/payment coupons until the balances are paid in full.
Not only will this make it look like 100 % of utilization when they report the credit limits and balances to the credit reporting agencies- resulting in Fico scores going down, but they will also report it as 'closed by credit grantor", another major negative hit against a person's credit history/score.


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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Nov 17, 2008 6:31 pm

Wow. I tried to pull up more info about this on the search engines but it doesn't appear to be up yet. Do you know if this is effective immediately? If not, say it's effective November 30th, I'd say anyone that has a credit card from them should close it themselves, that way it would be closed at the request of the user instead.

Besides these negatives you pointed out that will hurt the cardholders, I would say it's a good thing Aspire is going under. I've heard horror stories about them in the past and when I tried to pull this story up on the search engine I came across quite a few more. If you type in "aspire credit card" almost all the results are negative reviews, scam reports, complaints, etc.

A few that I found really shocking:

1. They sometimes charged a $15 fee to users for payed online.
2. up to $179 in fees to activate the card
3. Then there were a few judgements/court orders against them from the FTC and State's attorney generals. They had to pay $11 million in damages to NY consumers alone for their billing practices in 2006.

A company like that definitely doesn't deserve to be in business.

Do you have a card with them? If you do I wonder if it's too late or not to transfer the balance to another card (to reduce that credit utilization effect). If they have that debt "locked" in with them there has to be something wrong with locking customers in at a interest rate they never agreed to on a permanent basis. I'm not a huge fan of B of A but I know when you do a balance transfer with them they deposit the money directly into your checking and it's yours to do with what you want. Doing something like this may be a good way to pay off that balance if they're trying to lock it in and not let it be formally transferred.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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magyar1045
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Postby magyar1045 » Mon Nov 17, 2008 7:34 pm

Up until Saturday - when I received their letter - my credit limit with them was $3750. On today's website information it showes my new limit as being $1435, the same as my balance.
Will definitely access my credit reports in December to see what exactly they're reporting to the credit reporting agencies.

Floppster
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Postby Floppster » Mon Nov 17, 2008 8:40 pm

Ouch that is quite some dirty business they are doing. I think the best way of preventing yourself from situations like that is to only go with the big hitters such as Amex, BoA, Chase and a few more.
Intellectuals solve problems. Geniuses prevent them.
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sputNick
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Postby sputNick » Mon Nov 17, 2008 8:53 pm

Ok let me get this right- they would sometimes charge to pay your bill? That is so crooked!! Did they say why they are going out of business? Because they must be making a fortune if they charge all those fees no matter how many defaults they might have now.

The big ones aren't always the best though look at B of A and all that crap they're pulling lately. And the thing is if you're rebuilding or building credit most of the big names won't do business with you.

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Cucumber
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Postby Cucumber » Tue Nov 18, 2008 2:12 am

Do you have any other cards avail to transfer that balance to? I would get it off there asap if it's using 100% of your credit line now.

They sound like a total scam :(
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Stop talking crap about him!

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fffresh
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Postby fffresh » Wed Nov 19, 2008 6:15 pm

I predict we will continue to see more of these unscrupulous creditors close shop in the coming months and years. Despite available credit being tight today there are more and more offers to extend at least some credit to every consumer, no matter what their credit history may be. Companies such as Aspire which have been unfairly jerking around customers won't stay in business in this environment.

Now that the account is closed at what interest rate are they propositioning you to pay it off with?

kiboko
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Postby kiboko » Thu Nov 20, 2008 2:18 am

Good to see an UNFAIR lender like this that charges LOANSHARK rates go bye-bye!

magyar1045
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Postby magyar1045 » Thu Nov 20, 2008 12:49 pm

This bank operating the Aspire Visa probably went begging Monica Lewinsky style for bailout money but was turned down.

indianamom
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Postby indianamom » Sat Nov 22, 2008 6:54 pm

For lenders like that I say Good Riddance



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