Another Chase victim, need advice.

For just about anything you want to get off your chest about credit cards.
8 posts
future_man
Green Member
Green Member
 
Posts: 3
Joined: Mon Aug 24, 2009 2:58 pm
Location: las vegas

Another Chase victim, need advice.

Postby future_man » Mon Aug 24, 2009 3:07 pm

Greetings all,

First post. I checked for similar posts and couldn't find any, but my search may not have been exhaustive, so please forgive me if I'm doubling up.

Recently, Chase closed my credit card account. I had been with Providian for several years, and stayed on when Providian was taken over by WaMu. Once Chase took over, my APR doubled and tripled (from 6.9 to 21%). As though this were not enough, in July they sent notice that my account was cancelled.

When it was cancelled, I had an $8300 limit with a $2,210 balance. I thought the ratio of my limit to balance was solid. But this is not the problem.

I've accepted that I'm a casualty of the "credit crisis" or whatever you may call it. I'm willing to move on and, frankly, glad to have one less credit card to worry about. The problem is this: I'd been planning to pay off the Chase card in its entirety, and had saved the $2,210 to do so. Now that the card is cancelled, I'm less excited to do so. I know that I should just pay it off, but I feel like my credit has already been dinged by Chase and that if I pay all of the money, all at once, that I will receive no sort of beneficial credit boost. It feels like I'd be sending my money into a vacuum.

Should I just pay the damn thing off, or do I have other options? I'd really like to be able to do something useful with all of this money I'd saved up to pay the card off.

Any help appreciated,

FM


User avatar
Mogul of Pineapples
Centurion Member
Centurion Member
 
Posts: 1271
Joined: Sun Jun 01, 2008 11:32 pm
Location: Smogland

Postby Mogul of Pineapples » Mon Aug 24, 2009 11:15 pm

I know you don't want to because of what they did, but I think the best use of the money would be to pay if off. When they closed the card, are they allowing you to continue paying it off under the present terms, or are they demanding payment in full? I'm assuming the first because they usually allow you to keep paying on the latest terms. If that's the case you definitely want to pay it off 20% interest isn't worth it. There's no where you can put your money either that makes sense when they are charging 20%. If it was 0% even then I would probably still pay it off so you can have that weight off your back.
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.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

future_man
Green Member
Green Member
 
Posts: 3
Joined: Mon Aug 24, 2009 2:58 pm
Location: las vegas

Postby future_man » Tue Aug 25, 2009 3:59 am

Thanks Mogul. Yes, they're letting me pay monthly payments. How gracious of them!

Ugh. I know you're right. And I've been *this* close to making the full payment electronically at least three times. I will have to bite the bullet, but it feels so wrong. Any idea how big a ding this cancellation is to my credit?

My score wasn't anywhere close to perfect before (thanks, unanticipated ambulance/hospital visits!). Still, I managed to pay on time and more than my monthly minimum. But that wasn't good enough for Chase, obviously. With one card left, the balance of which is closer to 1,000 than 8,000, I feel like I'm throwing my money down a hole at the bottom of a pit.

Now, to research how best to get a 520 back to the mid 700's . . .

jeffysdad
Centurion Member
Centurion Member
 
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

Pay it off and be done with it

Postby jeffysdad » Tue Aug 25, 2009 9:33 am

Minor damage to your credit, if any, will drop off and you'll have a clean slate. Why worry about making a payment on time when you don't have to.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

User avatar
Mrs. GoodCash
Green Member
Green Member
 
Posts: 5
Joined: Fri Jul 31, 2009 3:45 pm
Website: http://www.creditcardsexposed.com
Location: Florida

Postby Mrs. GoodCash » Wed Aug 26, 2009 7:13 am

jeffysdad wrote:Minor damage to your credit, if any, will drop off and you'll have a clean slate. Why worry about making a payment on time when you don't have to.

Future Man, Why did Chase close your card? Normally they send you a letter stating their actions, but don't always give a reason why. Before you pay it off, call them up and see if they will negotiate a one-time settlement payment. Easy enough to do. Don't tell them that you have the $2k just sitting around waiting to be spent, though. You can say something like "times are tough, what would you take to settle this account right now?" And before you make a final decision, tell them you have to talk to your girlfriend, wife, pastor, accountant, etc.

I just helped one of my client's negotiate a $20,000.00 biz card for a lump sum of $1,500.00. No joke. Although, normally the standard is 40 - 50%.

Make sure you get everything in writing, even if its an email to confirm. AND write down the contact person's name, phone number, ID, extension, etc. Everything that they say. This "log" can be used as prima facie evidence should you need to use it.
Few people realize that now more than ever, credit card companies are willing and able to "play" when it comes to negotiating or renegotiating debt. Wish you success in your endeavors.

Mrs. GoodCash
"Wealth is the ability to really experience life." Thoreau

Sara Jane
mrsgoodcash@gmail.com
http://www.creditcardsexposed.com

future_man
Green Member
Green Member
 
Posts: 3
Joined: Mon Aug 24, 2009 2:58 pm
Location: las vegas

Postby future_man » Wed Aug 26, 2009 3:44 pm

Standard reasons: my debt to income ratio is out of whack. I also have some significant medical bills from an unanticipated series of hospital visits when i was uninsured in 2007.

I've already paid the money. Might I still have some room for negotiation?

User avatar
Mogul of Pineapples
Centurion Member
Centurion Member
 
Posts: 1271
Joined: Sun Jun 01, 2008 11:32 pm
Location: Smogland

Postby Mogul of Pineapples » Fri Aug 28, 2009 10:03 pm

Are you talking about negotiating the hospital bills you already paid? You won't be able to do that but what I would recommend is asking for an itemized bill and having it examined. There are companies out there that will examine your medical bills to see if there's any fraud going on. The truth is that almost all hospitals and surgical facilities scam the patients on the billing. They bill for things like $147 for "mucus removal system" (which are Kleenex) and other scams like that. Get a review done and if they overcharged you (which is likely) I would then take it to court and sue the hospital for 3x the amount.
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.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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 Sep 01, 2009 1:21 pm

I have my Chase card locked in my safe until further notice. I will begin using it again when they learn how to treat their customers with respect. They slashed my credit line by a great amount without cause a few months back.

This is America and we have a choice. If a company treats us badly let's not do business with them again until they get their act together.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests