Do you have a Chase credit card? If so, you should be watching your monthly statements closely. Chase has implemented new rules that is dramatically affecting credit cards of all its customers it seems.
People everywhere are seeing their interest rates skyrocket as Chase and others are raising rates, lowering credit limits, and in some cases, closing accounts altogether.
I have a Chase credit card myself, a Master Card that had a 9% interest rate. The card had a $1500 credit limit and carried a balance of only $150. I’ve never been late or missed a payment, as well as always paying much more than the minimum payment when I used it. Suddenly, last month I get a notice that the rate has been pumped up to 23%. Yes, 23%! My situation is common to others all over the country.
What’s funny is that just a year or two ago we would see our mailboxes being flooded with credit card offers. Everyone was pre-approved for all types of credit. These companies like Chase all did their best to get you to go into debt. I can remember getting 2-3 of these in one day. In fact, it was easy to understand how some families would end up having 15-25 different credit cards in their wallets at one time.
Thankfully, I never took the bait, but the few cards I do carry are all being hammered with these new terms.
Talking to Chase did no good. I called and was basically told that this was how it is now and if I didn’t like it I can close the account. I went as far as talking with a supervisor and she even admitted that there was no problem with my account and that I have been a solid customer for years, but these are the new rules and her hands are tied.
Not wanting to damage my credit rating, I’m hanging onto the card, but won’t be using it much at all. The thing is, the higher interest rate isn’t going to affect me much, if any, since we pay off the bills every month, or close to it anyway. It’s the principle of the matter.
If I was a poor credit risk I could definitely understand jacking up the rates or closing my account. Our family is not. I’ve been around long enough to know that what goes around eventually comes back around.
These credit card companies like Chase, Capitol One, AMEX and others, will all be wanting our business in a short few years when this financial mess passes by. How many customers will they have alienated between now and then? How many like myself will say forget it when it comes to their new offers? No one knows for sure of course, but I know that there are many like me who are now saying that enough is enough.
