The Credit Card Company Said WHAT?!

[Palsgraf]

Well, actually, they "wrote" WHAT?!

I've been paying off credit cards these past two years.

Some were easy: every time a bank wrote that they'd have to raise our rates (because of "current economic conditions"), they'd also offer the option to "opt out." But if you choose to opt out, they'll close the account.

Okay! Close my account! I don't want to do business with a bank that'll use the "current economic conditions" as an excuse to raise my rates ... especially when these same banks are making record profits in these "current economic conditions"!

(I don't think they realized how many people would choose to part with their precious little pieces of plastic. The last one we cancelled over-the-phone, we were actually transferred to a real person who asked why were were closing the account and then offered to not raise the rate if we kept our account open. "No! Close our account! Goodbye.")

Anyways ...

I've been slowly paying-down the balance on the account (recently acquired by a bank whose name rhymes with "Sh*ttyBank") that did not raise our rate ... probably because it was already too high to begin with. I recently sent them a letter:

Dear Sirs,

1. Please reduce the credit limit on my card to $[xxx.xx].

2. Please reduce the interest rate on my card to [xx.x]% or lower.

I started calling their automated teller each day to check if the credit limit had been reduced as per my request. When I began to wonder if my letter had been lost in the mail, I received this resposne:

Dear [Palsgraf],

Thank you for your recent inquiry regarding your [xxxx] account.

We are unclear on how we may assist you.

Please call us at 1-800-xxx-xxxx at your earliest convenience.

Sincerely,

S. Larson
Customer Service

Yes! They actually wrote that!

(Well, typed it.)

What part was unclear? The "Please reduce the credit limit" part? Or the "Please reduce the interest rate" part?

I'd even used a big "1." and a big "2." to show that they were two distinct steps!

So I'm pondering my next move.

I've considered sending this letter next:

Dear Sirs,

I'm sorry, but I cannot call you because I'm afraid.

I'm afraid of the immense headache I'd get from trying to speak with someone who doesn't understand "please reduce my credit line" and "please reduce my interest rate."

And I don't believe any amount of Tylenol or Ibuprofen or Excedrin or Cabernet Sauvignon would help.

So I have attached my/your credit card (below), cut into eight pieces.

Please immediately close my account.

Sincerely,

Palsgraf

Any other suggestions?

[smileyeagle1021]

Any other suggestions?

Vodka that might help with the headache... or at least make you care about it less
Other than that, I can completely understand you cancelling all of your cards... I've had good luck with HSBC, CapitalOne (I know, I'm the only person who likes them), and Barclay.
That said, my more realistic advice (after closing that many accounts your score is probably not very good and the only reason I've had good luck with those banks is I have better than average credit) is cut all ties with commercial banks and stick to credit unions. What most people don't realize is that you aren't a customer of a credit union, you are a shareholder, your savings account gives you partial ownership of the credit union. As such credit unions will give much better service and rates because their goal, just like commercial banks, is to maximize returns for their shareholders, and YOU are their shareholder.

[blas]

I feel for you. My cable provider seems to think "I want to downgrade my services" means "I want a *temporary* free upgrade and a surprise bill in a few months that's nearly double of what I was paying for before!"

[taxguykarl]

I had a similar problem with Crap One. I sent a registered letter cancelling the account (I don't recall why just that they did something that PO'ed me). This was not done, so I called in and the phone jockey said that "[Management] did not consider that enough to cancell your account."
My reply, "What does the FTC think of that practice?"

End result the account was closed and the balance (consisting of an annual fee and interest on the same) was cancelled.

[Sliceanddice]

the reason people will keep a card open even when the interest rate skyrockets is because 30% of your credit score is your debt vs credit limit and decreasing your credit limit by canceling a card with out a new card with the same or higher limit waiting for can take a good score like a 720 down to a 620 in a heart beat.

[csquared]

I like your letter. I think you should send it, less the "cut up card and cancellation" and see what you get.

They want to get you on the phone, so that they can talk you into something.

If you want a better credit card, go with a credit union.

[telecom_goddess]

the reason people will keep a card open even when the interest rate skyrockets is because 30% of your credit score is your debt vs credit limit and decreasing your credit limit by canceling a card with out a new card with the same or higher limit waiting for can take a good score like a 720 down to a 620 in a heart beat.

That's insane....right now my credit score is something I don't even want to lay eyes on but when all is said and done in a couple 3 years I should be debt free with NO credit cards at all. So my score will suffer because I'm not wallowing in debt anymore? The only reason I would even care about my score is for renting apartments anyway.

[BlaqueKatt]

CapitalOne (I know, I'm the only person who likes them),

Nuh-uh I am very happy with them.

they gave me my very first credit card 7-8 months ago(it has a ladybug! yay!). with a $300 limit, made my first 3 payments on time and now have a $500 limit.

They rawk!

[42_42_42]

That's insane....right now my credit score is something I don't even want to lay eyes on but when all is said and done in a couple 3 years I should be debt free with NO credit cards at all. So my score will suffer because I'm not wallowing in debt anymore? The only reason I would even care about my score is for renting apartments anyway.

It won't suffer if you pay off the debt, but don't cancel the cards.

[Solumina]

Being debt free will not hurt your credit, having no revolving credit will. Just keep one or two cards with no annual fees open and either keep them just for emergencies and pretty much don't even think about them or use them as you would a debit card, only when you have the money in your bank account so that it can all be paid off before the end of your billing cycle.

[blas]

Be careful with Capital One. Not long ago, they started punishing me for not using my card, but charging me "inactivity charges". So even though my card is nearly maxed out (but because I make a little over the min payment every month, there is a little left over) if I don't spend at least a few bucks every few months on it, I get zapped.

[DeltaSierra]

A bit of advice - if you have a credit card, and can't pay it all off each month, OVERPAY the minimum by at least $5. I've gone from a $300 credit limit to $19,000 in 5 years doing that. I'm almost finished paying it down (had to charge $3000 for car repairs last year.)

[blas]

That's about what I do, $5 to $10 over the min each month.

My card's max is only $1,000, but that was eaten up very quickly by owning an unpredictable pile of crap car.

[telecom_goddess]

Be careful with Capital One. Not long ago, they started punishing me for not using my card, but charging me "inactivity charges". So even though my card is nearly maxed out (but because I make a little over the min payment every month, there is a little left over) if I don't spend at least a few bucks every few months on it, I get zapped.

Unbelievable.....I swear they invent fees right outta their ass.

[Kogarashi]

Being debt free will not hurt your credit, having no revolving credit will. Just keep one or two cards with no annual fees open and either keep them just for emergencies and pretty much don't even think about them or use them as you would a debit card, only when you have the money in your bank account so that it can all be paid off before the end of your billing cycle.

Agreed. Hubby and I currently have a Chase rewards card (love them; they've done right by us so far), and we use that in lieu of debit/checks, making sure to only spend what we have in the bank account. Hubby pays the card off each month, and we don't have to worry about interest. I don't know if they charge "inactivity fees" either since we do use it at least once a month.