My credit card company sent me a notice that they're changing my balance transfer fee maximum from $75 to $250. I use balance transfers sometimes, so this is bad for me.
They said in the notice that I can "opt-out" and reject these changes, but at the end of my membership year, they will CLOSE my account and I will have to "repay the balance under the current terms."
I'm not even sure what that last part means. Sounds like they will close my account and I'll have to pay the final balance? Also, if they close my account, won't that hurt my credit score?
2006-10-25 11:33:40 · 7 answers · asked by melissa 2 in Business & Finance ➔ Credit
Any time your credit card company changes the terms on your account, they must give you the option to 'opt-out'. If you opt-out, you're account will be blocked and the only transactions allowed will be payments. Interest and penalties will be calculated under the terms as they existed before the change until you pay off the balance. As long as you pay according the those terms, your account is in good standing as if the change of terms never happened.
2006-10-25 13:12:11 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
Without knowing what the "current terms" are, it is not possible to say if this means that the entire balance must be paid at the end of your membership or if the account will simply be "locked out" to any increase in the balance, which would mean that you would continue to receive monthly statements with a minimum payment amount. Read your membership documentation to find out.
Your credit score will not be hurt as long as you continue to pay the "minimum payment due" on each statement received.
If balance transfers are important to you, find a new card issuer with a lower fee for this service but make sure you compare all rates and terms, not just this one.
2006-10-25 12:04:17 · answer #2 · answered by bobbus10011 2 · 0⤊ 0⤋
Depending on your credit score, it could cause you to get a lower score. If your score is low already, then closing the account won't make much of a difference. If you have really good credit, it could lower your score since part of your score is based of the total amount of credit you have and what percent of the limit you are using. (If you close your card, then you automatically lower the total amount of credit available to you.) Another part of your score is the amount of time your accounts have been active, if this is your oldest account. It will lower your score.
2006-10-25 14:41:22 · answer #3 · answered by Mariposa 7 · 0⤊ 0⤋
i highly doubt it will affect credit score (only if you don't pay at the end). yes, it means you will have to pay your final balance at the end of the year.
2006-10-25 11:37:43 · answer #4 · answered by spellman_2007 1 · 1⤊ 0⤋
This sounds like the company is walking a thin line of illegal action. If you can pay this off, do it and get away from these people.
2006-10-25 11:42:34 · answer #5 · answered by beez 7 · 0⤊ 0⤋
i think its time you got a new credit card
2006-10-25 11:39:15 · answer #6 · answered by Bobby B 2 · 0⤊ 1⤋
if they close a account, that will hurt your credit score.
--------------------------------------------
http://www.bestcreditrates.net
2006-10-25 14:45:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋