Chase changed my apr rate to 27%!?

Question

I have an account with Chase and it was at an APR of 17%. I went to their website and got their number, after waiting 15 min. I finally got a 'customer service representative'. I asked if they could lower my rate; I was told to go on-line and use the 'contact us' feature, which only led me back to the phone number to call?! My next statement had an APR of 27%! This seems more like 'customer shaft' to me; is there anything I can do? My balance is almost $5,000 and I'll never get it paid off at 27%! I called to try to make my payments easier, being an honest person who wants to pay their debt, and this is how Chase reacts?

Answer 1

Try doing a balance transfer with another bank. Sometimes you receive these special offers in the mail with terriffic deals. They offer low interest rates and will save you big $$. If that doesn't work, try going in to your bank to see if you can get a small loan to pay it out. Close the account at Chase. You have to try as hard as you can to get this $5K paid out ,and paid out fast to bring up your credit score. BTW... your received poor service from that Customer Service Agent. I know that they would of been thinking that you might start getting upset about what has happened to your APR. They probably just wanted to get you off their phone. That is one of the most stressful calls an Agent could have.

Answer 2

Listen up ! Look for other cards you may have a change in rate also. This is the most common thing creditor to to consumers. Your great payment history has no leverage. Your creditors are the only financial institution on earth that can raise your rate at any given time. Example if you bought a car and now your debt to income is higher and discover See's that when they pull your report they can raise your rate. You are now a high risk. Be late on amx and citi or chase will raise your rates. That my friends is the world of credit card debt. Its perfectly legal and not a thing you can do about it most of the time. Frustrating but true. This is the same story I hear day after Day client after client. That is why it is so important to pay balances off every month.
Kourtnie Donihoo
Debt Analyst
The E.D.A. Group

Answer 3

This is common in the credit card industry and it's how they make their money. Once they have you on the hook and you are carrying a balance, they decide you might not be as good of a risk. They--and all credit card companies--check your credit reports often. I know Citibank checks my credit at least 3 times a year. It I get into any sort of debt somewhere else, they will use it as an excuse to raise my rates.

I am with the other posters-- find a card to transfer the balance and try and pay as much off as possible while you have that 6 months of a honeymoon interest rate.

Answer 4

They increased the percentage rate because you're a bad credit risk, being that you are still maintaining a high balance. I think that if you started making larger payments; larger than the minimum, your credit rating would improve and they would lower the interest rate.

Also, it's the way banks make money. They make money off of people's bad choices, very capitalistic indeed. Anyway, you are currently enjoying the blessings and lifestyle that capitalism via credit cards has afforded you. Just do your best to pay it off sooner rather than later, or file for bankruptcy if your finances are out of hand. Though, filing does not mean that all or evne any of your debts will be discharged. What's more, the creditors will repo. the stuff you bought

Answer 5

Did you talk to them after the 27%? I'd apply for another credit card, make sure you CAN transfer your balance to a lower credit card company and then call Chase--explain what happened and say if they can't lower your rate you'd like to close your account. Almost every time I've threatened to leave, they've lowered my rate (not Chase, but other companies...). If they don't lower your rate, at least you have another credit card to transfer to. Also, I believe that credit card companies are required to let you know if the APR is going to change IF it is a fixed APR. If it was adjustable to begin with, they don't have to let you know.

Answer 6

Isn't it amazing how easy it is to ruin our own lives? Of course, it is with the assistance of companies like this.

In years past, it was only the loan sharks that operated in this fashion. Then, it was considered illegal. I'm sure you've heard the stories.

Now, banks, credit card companies and the like have paid off our Senators, Congressmen and law-makers so that they can get away with stuff like this. This is my opinion and NO, I cannot prove it!

Dispite anyone's credit worthiness, 27% is beyond outragious! It is rates like this that make paying back a loan nearly impossible!

You can make an attempt at working with the company as others (above) have stated. IMHO, it just doesn't work. You will be treated like a criminal, a moron.

Another suggestion is to find a family member who is willing to help you out.

I highly recommend cutting up your plastic. If you cannot pay for that which you 'need' within one month, you don't really need it.

I have been free of credit cards for 5 years and am living quite happily without them. I will not have someone else dictating who I am!

Persue you credit worthiness through your bank and local establishments.

Establish laws to create a 'fair' credit rate for all.

Happy New Year!

The OL' Sasquatch Ü

Answer 7

It is up to their discretion to do this. Normally, it will state this in the original papers that you receive when you receive your card.

Possibly, they were looking into lowering your APR by checking your credit and something has changed on your credit to make them raise it. For example, if your credit score has dropped or you have a lot of debt showing on your credit, they can raise the rate because of those kinds of things, because it makes you more high risk.

It sucks, but that is just the way it is. I would look into transferring your balance to a card with a lower rate.

Answer 8

This happened to me as well. I have a $5000 balance with Chase and pretty much I will never get it paid down. Do you know the reason they raised mine to 27%???? Because I have high revolving balances with OTHER credit card companies. I will never use a Chase card again.

Answer 9

all credit card companies are crooks. Some of mine have gone from 9% to 29.99% and I have never been late or missed a payment. However because of these higher amounts I have run out of money sooner than I thought and next month I won't be able to pay them anymore.

Answer 10

You too huh !! What is up with that ,,, If I was notified, I didn't read it.. It hit all of a sudden ,, I'm gonna call them this week. if they don't reduce it ,, I will try to find another lower to transfer balance 's to ... I think it was a sneak attack ,, and just after Christmas Go Figure ..


Good Luck

Didn't Like What Happend , But was glad to see another person mad about it .. I hope we all call and protest ..


IT SURE WASN'T RIGHT ..


GOOD LUCK

HAPPY NEW YEAR !!!!!!!!!!!


.