“I just received notice from Chase Credit that they are adjusting everyone’s (Business and Consumers)interest rate by 2% regardless of credit history or balance. I love the idea that they can give out worthless loans to folks who could not afford it and then expect the customers who stayed faithful to bail them out. Chase is worthless in my humble opinion now. I am pulling out from Chase tomorrow as I am not paying their way out of the mess they created because of greed.” See comment at http://www.smartbalancetransfers.com/blog/2009/02/chasecredit-card-low-interest-rates/
I followed up with the visitor via email and he elaborated on his comments, stating, “I spoke to chase twice this evening and they are sending this to all business customers and also the consumer card holders as well.” The visitor also forwarded me a copy of the notice he received, which is posted below.
After gathering additional information, I contacted Chase and asked if my account would be effected by a rate increase. The customer service representative stated that, “Chase will be changing terms on all accounts. You will be notified by mail before any changes take place.”
I recieved conflicting information when I contacted Chase customer service via email. They wrote to me:
“”Please be advised, your account is not currently subject to any change in terms for the Annual Percentage Rate (APR). Currently, the APR on your account is 13.24% variable for purchases and 19.24% variable for cash advances. You may verify these rates by comparing them to the information included in your monthly billing statement. As your account has a variable rate, your standard APR is based on the Prime Rate and may increase or decrease as the Prime Rate fluctuates.
As noted in your Cardmember Agreement, we may change the terms associated with your account and will notify you of the change in writing in accordance with applicable law. Any changes to your terms will be mailed to you prior to the change taking place.”
Given the conflicting statements from various customer service reps, its hard to say whether or not across the board changes are going to take place. However, the reason stated for the rate increase is refreshingly honest. As highlighted below, the rate increase was for the purpose of, “maintaining profitability on your account.” Apparently, borrowing money for 0% and lending it out for 12% just isn’t good enough these days. But hey, at least they’re being honest.
Click here for full sized image
Click here for full size image
If you have any information about an across the board 2% interest rate increase or general change in terms on Chase credit cards, please provide us with additional details and, if possible, email us a copy of the notice. If you send a notice, please be sure to black out any personal information, such as your name or account number.
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May 21st, 2009 at 7:27 am
I too, got the same notice in the mail yesterday, 5/20/09. It listed the exact same reason – “to maintain profitibility on my account. In my case, the rate went from 19.99% to 21.54% effective with the July 2009 statement. Needless to say, I called the 1-800 number listed and cancelled the card. I will now wait to see what kind of comments Chase will make to the credit reporting bureaus about this.
Talk about hosing people over.
May 21st, 2009 at 2:07 pm
Jim,
It seems like your interest rate increase could have been much worse, though it is still a 7% increase on a debt you are obviously repaying. At least Chase let you keep your old rate. I have heard from a slew of Capital One customers who recently had rates increased by nearly 50%
May 22nd, 2009 at 11:07 am
I got a notice uping my APR by 2% as well. I have had their card for six years. I just renewed on their new Platinum card. I have never been late, I have paid off significantly more then the minimum or paid the balance off in full each month. I have a $20,000 L of C and am holding a $241.00 current balance.
No rhyme, no reason, but when I called them they just simply said accept the new rate or close the account. I went to my Credit Union got a new 7.9 percent card and closed Chase.
May 28th, 2009 at 8:58 am
Similar Story: I’m a ten year CC customer with Chase in perfect standing. They [expletive deleted] me on that balance transfer and jacked my rate last year. I called to complain and got them lower it to something reasonable. But then yesterday I got my June Statement and saw that my APR went up 4 points! When I called to ask them why, they claimed to have sent a letter back in March that “gave me the option” to stay at my current rate or accept the new higher rate (X number of points above prime). So because I didn’t contact them, I nvoluntarily accepted a higher rate. I open every piece of mail from Chase, I never read anything that said I had this option. Card Canceled, balance transfered! All these companies are jacking up their rates pending the new legislation. These companies mismanage, take TARP money, and we get screwed twice. So outrageous!
May 29th, 2009 at 10:23 am
I also got the 2% increase letter in the mail on 5/28/09. No reason, this is everyone. Called them and they could care less that I closed my account. I hope people do not accept this and stop using Chase credit cards.We dont need them as much as they think!
May 29th, 2009 at 1:48 pm
I’m waiting on my letter. I wonder if this interest rate hike is truly across the board or reps are just saying it is to calm down angry customers. But the evidence is starting to pile up for an across the board hike. I imagine there will be a flood of comments if that is the case, although I think it could be limited to customers with good credit who hadn’t been hit with rate increases yet, as opposed to every single customer. Nevertheless, I wouldn’t rule anything out.
June 2nd, 2009 at 11:53 am
I just got a letter from Chase today. Interest rate went up 4%. I have multiple cards with Chase and hope this isn’t just the beginning. Will need to decide if I want to close the card.
June 3rd, 2009 at 7:36 am
I have been doing more research and am finding APR hikes associated with the company checking FICO scores. This would apply to me. I have been paying off debt via the “debt snowball” method, and have paid off 3 installment loans this year. My 1 Chase credit card was the only debt left. I watch my credit score pretty close and noticed that paying off my debt actually decreased my credit score by 8 points over the past 4 months, from 730 to 722. I sure bet they dont DECREASE your APR when the score goes up.
I got my balance transferred to my credit union credit card for 3.99% until I pay it off.
June 3rd, 2009 at 10:03 am
Jones,
Closing a credit card account can hurt your credit score. Nevertheless, if you have a large balance you cannot repay quickly and cannot get a balance transfer, saving 4% may be better than losing a few points on your credit score. However, if you do not have other credit cards, you may want to open one before closing this account, so you have credit available AND so you limit the damage to your credit score.
June 3rd, 2009 at 10:06 am
Paula,
Looks like you stumbled straight into a credit score Catch-22. When you paid off the accounts, it probably shortened your credit history a little, which would account for the small dip. Granted, your credit score should have increased, as you now have less debt, but these credit scoring systems are really a joke.
Congratulations on paying down your debts though! Even if FICO doesn’t like it, it must feel good.
June 4th, 2009 at 11:56 am
I just got off the phone w/Chase and my interest rate is going up 6%!! (I have very good credit). My other card with them is remaining at the low rate offered. I will be transferring my balance to another credit card company at a significantly lower interest rate and this is what I was told:
1. Transfer the balance
2. Contact Chase to close the account and it will show the account closed with a zero balance.
3. This needs to be done by June 22nd.
I’ve been a customer for a long time and have not had problems with Chase, but there’s no way I will accept this rate increase. CANCEL YOUR CARDS BEFORE JUNE 22nd!!!!!
June 4th, 2009 at 11:54 pm
My WaMu card (now owned by Chase) jumped 4% as of July 1st; however, I haven’t received a notice on my Chase card. Ugh!
June 5th, 2009 at 9:09 am
Jami,
If you are transferring the balance to a new card, you may want to keep the old Chase credit card open to limit any damage to your credit report. The reason I suggest this is twofold. First, a key component (about 30%) of your credit score is based on your credit utilization ratio. This is the amount of available credit you are using over the amount you have. Thus, if you close the account, you will decrease your available credit, which will increase the percent of available credit you are using.
Closing accounts can also negatively impact your credit score by effectively shortening your credit history. This plays a much smaller role than credit utilization, but if the Chase card you are closing is one of your first credit cards, this can be an issue.
Of course, if you cannot get a low rate balance transfer, definitely close the account to preserve your lower rate. This will have a negative credit score impact, but a 6% increase is going to have a negative effect on your wallet, and that is probably the most important thing to protect.
June 5th, 2009 at 9:26 am
Caught,
I’m sorry to hear about that. And the thing that really makes me cringe is that 4% interest rate increases are really more like 30-40% increases when original rates are in the 10% to 12% range. UGH indeed!
June 19th, 2009 at 8:41 pm
I also received the notice of increase in APR, but mine works out to 7% higher rate even though I have always paid on time, paid more than the minimum amount due, etc.
I figured out that this increase would INITIALLY cost me an additional $312 per year in interest, not to mention that the increased monthly payments will slow down the rate at which I can pay off the outstanding debt.
In addition, if you read the notice carefully, this changes the APR to a variable rate based upon the index they are using. With the economy going South the way it is now that Congress and the President have tried to “fix” it, you can be assured that the rate will continue climbing at a far rapider rate than the COL since the Commerce Dept decided to redefine what goes into the COL in order to lower it even though it is rising like a sky rocket. After all, Obama doesn’t think that the higher costs for heating your home or providing lights for your family to read or watch TV counts as inflation! That is BEFORE he and ALGore add their tax to force the cost of heating and electric much higher so that ALGore can make a few billion more dollars to fuel his jet and light his home that already burns as much electric as a small town.
I originally received this card as a promotion from Philips when I bought a HDTV and the original rate was ZERO for the first year. While I have no problem with Chase wanting to make a profit on money they loaned me, 25% APR is usury in my eyes. I will be shutting down my account, just as I have with two other CC’s I have that tried to do the same thing.
If it hurts my FICO score, so what. I would rather have an extra $312+ a year in my pocket than 15-20 more FICO points.
June 20th, 2009 at 6:26 pm
DJ,
I think you’ve got the right approach. If you don’t need your credit score for a major purchase, paying $300 a year to maintain it is really rediculous. However, I do always suggest opening a new credit card account before closing an old one, as this can offset the damage to your credit score and also provide you with some available credit. The way credit card companies have been acting lately leads me to believe getting a credit card will not be easy for just about everyone in the very near future.
June 21st, 2009 at 8:25 pm
THE SAME THING HAPPEN TO ME! I CANCELED BOTH CHASE CARDS AND THEY SAY IN THERE IF YOU REJECT THE INCREASE YOUR APR WILL STAY WHERE IT IS. IM CALLING THEM TOMORROW IF THEY DON’T DO ANYTHING ABOUT IT I AM NOT SENDING ANYMORE MONEY! IF ANYONE WHO IS HAVING THE SAME PROBLEM STOP SENDING THEM MONEY! WE ALL NEED TO WORK TOGETHER. IF WE STAND TOGETHER AS ONE WE WILL WIN. THIS IS THE PROBLEM WITH THE WORLD TODAY. NO ONE STANDS TOGETHER ANYMORE THERE’S TO MUCH FEAR IN WHATS GONNA HAPPEN! OOOO MY CREDIT SCORE IS GONNA GET SCREWED OR WHAT WILL I DO WITHOUT A CREDIT CARD…. I’LL TELL YOU WHAT WILL HAPPEN. YOU WILL STOP SPENDING SO MUCH MONEY I THOUGHT THE SAME THING I HAVE A PERFECT CREDIT SCORE NEVER LATE ON MY PAYMENTS I OWE CHASE $12,000 I’M A FULL TIME STUDENT I D.J. ON THE WEEKENDS. I DON’T MAKE THAT MUCH MONEY I LIVE IN A 2 BED APT. WITH MY GIRLFRIEND AND HER SON AND WE BOTH STOPPED USING CREDIT CARDS FOR A YEAR AND A HALF PAYING OFF OUR CREDIT CARDS HOW EVER WE CAN. WHY SHOULD WE SUFFER MORE FOR CHASES LOSS! SO IF EVERYONE STANDS TOGETHER CHASE WILL SUFFER EVEN MORE!!!!!!!!!!!!!!!!!!!!!!!!!!
July 10th, 2009 at 3:43 pm
I got my statement this month and noticed that my APR had doubled! When I called them up they said it was a “business” decision. I told them that it was disgraceful and that I would be making my own business decision to no longer use them for CC needs. We all need to publicize this and shame these guys…they probably don’t care but let’s at least not let them do this quietly. The bottom line here folks, is that if you are a slave to the credit card companies…they own you. Pay off your credit and stay out of debt!
BTW, can anyone recommend a credit card company who you’ve found to be ethical and/or more trustworthy than Chase?
October 21st, 2009 at 1:27 pm
I opened my credit card account almost 10 years ago with Providian then Wamu took over and Chase. I have NEVER been late on a payment and ALWAYS pay more than the minimum. Last month I went over my limit by $8 and received a $39 fee for it. I understand and made no fuss about paying it. Last week I received a letter advising me that my interest rate will be increased from 15% to an outrageous 30% in January. I called 3 different times and spoke with everyone I could about stopping the increase as it was a small error and I have always been a loyal client. All I got was thank you for being a great customer but there is nothing we can do. This is just plain wrong and can’t believe the way they have handled my situation. I will NEVER deal with Chase again and will make sure to tell as many people as I can about this outrageous behavior. I will stick with Capitol One from now on as they have always been great to me even when I did make an error…
CHASE BANK SHOULD BE ASHAMED OF THEMSELVES!!!
October 21st, 2009 at 3:52 pm
In the past, most banks would have removed the fee for you. Today, they seem to use any excuse they can to charge higher rates. I hope you are able to transfer you balance away to a different card. No one should be paying 30% interest rates to anyone but a loan shark.
November 20th, 2009 at 7:11 am
I received that same interest rate hike effective March 2009. When I called they pretty much said accept it or opt out. I accepted since I need an open line of credit. I have never missed a payment, been late on a payment, exceeeded my credit limit, or violated my credit contract in any way. My credit score is excellent. There was no reason for the rate hike.
For the second time this year I have received a rate increase notice. This will bring my total increase to eight points since this time last year. Again, I call and I’m told too bad, so sad, accept it or leave. The rep willingly told me that I did nothing wrong they just need to raise rates to stay in business. Again, I have to accept to have an open line of credit. I also questioned if the increase will apply to past purchases. After beating around the bush and telling me she doesn’t know for sure she finally admits that it will apply to past purchases and becomes effective January 2010. So convenient that this goes into effect right before the new legislative laws put in place to help consumers avoid these fraudulent acts.
Now here are my questions: How many increases can be imposed on a good user for no reason? Where is the reward for being a loyal customer for five years and never missing or being late on a payment? Why did the government put a date on the effective date of the new laws and why are these companies allowed to do anything they want to hurt the consumers before it becomes effective? The damage is already done. The middle class suffers more. These laws are causing more bad than good because the credit companies are scrambling to cover themselves by preying on those they know will bail them out–the ones that pay their bills!
Chase should be ashamed.
November 20th, 2009 at 10:06 am
Karen,
It seems the rate increases are unlimited and the rewards for being a good customer are non-existent. You may want to consider getting a new card from a different company and doing a 0% balance transfer to move your debt off this card.
November 23rd, 2009 at 11:02 am
2%? It is not much! I had 6.99% before March 2009. In March that rate went up to over 12%, and a few days ago I got a letter form Chase. They raise my interest rate to over 22%!!! That is a rip off. I have a perfect credit score and never was late with any payments. What is going on? When I called them, I was told that there are two things I can do: accept the new terms or close the account. However, both of these options negatively affect my credit score. Is there any place I can complain about this kind of practice?
November 28th, 2009 at 6:09 pm
Raised my cc rate from 15% to almost 24% for no reason. Said they sent me a letter which was never received. Said close the account or pay the higher rate even though closing the account lowers credit scores. No doubt they’ll then raise rates on any other accounts you have becuase you credit score went down. I had 2 other accounts with chase including a Southwest Airlines Rapids Rewards Visa which I went ahead and closed. DON’T BANK WITH CHASE!! THEY’LL SCREW YOU OVER IN A HEARTBEAT.
December 28th, 2009 at 5:07 pm
All of my accounts with Chase, business and personal, have been given much lower credit limits. I have always had high credit limits – up to $30,000 on one of our accounts and that account was just lowered to $500 although I paid the account in full just a week earlier. I paid all of our Chase accounts the previous week and for this? The reason they gave was the balance owed was too high; number of accounts currently in use (I am a business owner with traveling employees) and rapid increase in revolving balances (business owner with employees). What is this? What bank is better?
January 3rd, 2010 at 7:20 pm
This is insane! I was never told/mailed anything! I got 2%. You know what I’m gonna call them tomorrow and if they ain’t gonna so anything I’ll just simply tell them to keep there recorders ready and sue me for there $10,000 balance. Screw them. I’ve been faithful to this accout for 7 years and never late. I/we consumers bailed them out and this is what we get?
January 6th, 2010 at 10:31 am
I am so mad at Chase credit card they are just worse then loan sharks. I received my first statement for this 2010 year and to my surprise my interest rate was increased from a low interest rate to 14.99% and the latest to 20.24% interest rate. I have been trying to pay this credit card off for over one year by sending payments over my minimum required. I contacted Chase and told them way was my rates increased when I have not used my card and have been paying my cards over the minimum to get them paid and they stated that it was due to the economy not by my payment history. At the sametime, I received another letter stating that since I was such a good customer they can offer me a 0% interest for 9 billing cycle period or 2.99% for 18 billing cycle period to borrow more money but they could not help me with my current rate. How in the world does that make any sense? They are worthless theives irresponsible finacial suits. They lend to people that can not afford a loan and turn around a get our tax money and still stick us with hefty interest rate hicks. I hate every single credit card out there for being the corporates for our financial collapse and making us the smaller percentage of responsible individuals that are responsible in managing our budgets and that end up paying for the irresponsible bankers & their customers that were idiots enough to think that the bankers were out there to help them. Bankers are lower then earth worms in my humble opinion.
January 6th, 2010 at 10:45 am
Marlene,
I would be wary of using those low rate checks. Balance transfer checks and promotional deals are often sent from different departments, so one department may raise your interest rate and cut your credit limit without knowing you have a 0% balance transfer offer. When you go to use the balance transfer checks, they could be denied, resulting in evermore fees. Bankers are truly low creatures these days.