So, I have an acct with WAMU (Washington Mutual) and made 1 late payment a month or 2 ago. Since I have online billing, and no paper statements (and they don't offer APR online)... I called to find out my APR. It's at 31.49%!!!! I owe $634 on it. I want to know which is better to do. Make higher payments and then cancel the card once its paid off ... or make a $200 payment today and close it... and keep paying on it? Any advice would be fantastic. Thanks!!
2007-12-06 10:29:43 · 14 answers · asked by Just Tryin' to Help 4 in Business & Finance ➔ Credit
I had the same prob...
Call them up and tell them you want to "settle" your account.
Ask them if they will lower your interest rate and total amount owed.
Keep in mind, they want to keep your account open, so they can charge you the interest rate, so if you tell them, "well, if we can't work out a lower interest rate or account balance, i'm just going to have to pay it off soon and close it."
They don't want you to pay it off all at once, because they want your monthly payments so that they can make money on you from interest. So, it gives them incentive to lower your interest rate! ;)
Best of luck!
2007-12-06 10:32:21 · answer #1 · answered by shaRT 4 · 0⤊ 1⤋
First because you were late you hit what is known as the default rate. This is a rate that kicks in anytime you are late. Generally, if you continue to make your payments on-time you can usually negociate with them to lower your rate back down after about 6 months. Read the terms that came with the card and there should be something that explains this.
Do not close the account out. As that will not lower your interest rate. Pay as much as you can each month, to get it paid down as quickly as possible. Then after 6 months talk to them and see if they will lower your interest rate back down.
Once it is paid off then always pay off the balance each month and make sure it is on-time. This way it does not matter what the interest rate is, since you are paying it off each month you are not charged any interest.
2007-12-06 19:04:15 · answer #2 · answered by OC1999 7 · 1⤊ 0⤋
I'm speaking from experience here. You don't want to close your account if at all possible! It's better for your credit score if you can try to pay it off by making higher payments, or at least pay off a lot of it, but keep your account open, especially if you have had your account for a while. That way, you will have a bigger credit line available which is good for your credit score. If you close your account, you won't have that credit line anymore. You just definitely need to be vigilent about not making any more late payments. Bottom line is you want to do everything you can to keep a good credit score!
2007-12-06 18:38:12 · answer #3 · answered by WhoMe? 5 · 0⤊ 1⤋
I would call and cancel the card. Pay it off and not obsess with the I love debt score. The only thing it will get you is debt.
pay as you go and live on less than you make and you will have money. You wont need to borrow. If you dont borrow you dont need a high I love debt score.
Debt free is the way to be!
2007-12-07 01:58:42 · answer #4 · answered by heybulldog 5 · 0⤊ 0⤋
FFS! FFS! FFS!
I am English, and there are a few sharks here too, trust me, but 31.49%?
Stop using the card, pay it off, and bear in mind you will still owe money in arrears, with interest if you don't pay it.
Publicise their un-ethical practice by naming and shaming (like you have done here) and crucify the bloodsuckers as they have tried doing to you.
I owed £35 000 on my cards once, and the nasty sharks did everything they could to stop me paying it off.
Now I've lost my house, they still want to loan me money.
They're gonna lose this time... Or I WILL?
2007-12-06 18:42:11 · answer #5 · answered by MikeD2 4 · 1⤊ 0⤋
Tell tehm you want to transfer to a different credit card, when they ask why, Say what are you frikken kidding me, 31 % !!!!
They will probably say they can lower it. Tell them you want 9% or you are done... They will offer you 20 0r 19 keep talking them down. I got my discover down to 11% that way.
If they won't do it. Then get a different card and really transfer it.... but don't be late or it will happen all over again...
2007-12-06 19:13:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you close a card, you have to pay the balance in full. make higher payments or borrow the money to pay it off.
2007-12-07 15:21:33 · answer #7 · answered by Steve R 6 · 0⤊ 0⤋
Call n ask 4 a lower rate n pay it ALL off n then cancel..some of these banks r getting away w/ murder !
2007-12-06 18:39:06 · answer #8 · answered by Gambit-Xeneise 5 · 0⤊ 0⤋
It could be your credit score is not very good and therefore your have that rate. Find out what your score is by paying everything on time you will have better credit and in turn better apr
2007-12-06 18:33:55 · answer #9 · answered by mystcarol 4 · 0⤊ 1⤋
you are stuck paying the APR until your balance is paid off. I would pay what you can as fast as you can, and maybe take a loan somewhere else to pay off the rest...it doesn't matter if you close it or not, they are still going to keep sticking that rate to you. Sorry!
2007-12-06 18:33:49 · answer #10 · answered by silentnonrev 7 · 1⤊ 2⤋