Don't know what to do

iVillage Member
Registered: 05-26-2004
Don't know what to do
2
Mon, 03-16-2009 - 2:43pm

Hi there.

Been reading this forum like a nutty person and a few of you have gotten into the situation I'm sitting in now.

I got notice today that Chase is going to jack up my APR rate from 14.99% to 21.24% as of May 2009 billing cycle. I have a decent balance on it (like $10,500) and I'm trying to pay it down. I also have had this card the longest and it has a good credit limit on it ($16,000). The advice I need is the following: do I close the account and not accept the new terms and pay it off under the old terms that I took the card out on and let my credit score take a hit for it?? OR do I accept the new terms and have more money put on the credit card from finance charges and such?? They also said the following:

"Closing your account.
The portion of the closing your account section of your agreement that shows the reasons we may close your account is amended to read as follows: Except as required by applicable law, and without prior notice, we may close your account or suspend your credit privileges at any time for any reason, including account inactivity. If we close your account, we will not be liable to you for any consequences resulting from closing your account or suspending your credit privileges."

I don't know what to do. I asked my husband and he's yet to get back to me and he's pretty good as to decisions like this and I've NEVER been in this situation before. How long would this hit be on my credit report?? I currently have good credit and really don't want it knicked, but I refuse to let the credit card company get the best of me.

Help!!!!!!!!!!!!!!!

Kelly

iVillage Member
Registered: 11-17-2007
Mon, 03-16-2009 - 3:24pm

First how good is your credit score. If I was in your position which thank the Lord I am not because all of interest rates are locked in. I would start looking for cheap money. If it meant applying for a couple of cards to cover the 10,000 I would do it.


There is cheap money out there. Just the other day I got like 4 offers in the mail from different credit cards The highest one was 6.9 which is a lot cheaper then what you are paying now.


Yes you can opt out of the account but if it is like you say the oldest card you have

iVillage Member
Registered: 12-21-2004
Mon, 03-16-2009 - 5:14pm
When I got the notice from my credit card I went ahead and did the opt out - I really hated to do that - but I knew that I wouldn't qualify for another card - I had tried recently and been denied - and I just didn't think I would ever get the card paid off with the hiked up interest rate.