Seems pointless for Chase to do this, thankfully I have a stable job, make a great income and have no basically no debt. But I am quite a consumer, I simply buy within my means. But if nothing else they could make money off of me from the transaction charges from the merchants. I need to buy a car, but when I was talking to the auto salesman, he was telling me that they used Chase financing for the automobiles. I walked out. Now I use AMEX for any credit card purchases I need. Pay the bill at the end of the month, done. I’ve been a customer of theirs for 12 years now. All of my travel expenses, eating out, everything goes on that card.

I guess Chase doesn’t desire customers like me. And they will get what they desire. I was in a Chase branch the other day, making a payment on my card and a young man working there gave me the hard sell on moving my checking and savings accounts there. He probably wishes he didn’t speak to me. I made sure everyone knew what I thought of their bank.

It sounds like you are experiencing the same type of limit reductions that many visitors have shared on the credit limit decrease comment section. And yes, it is completely insane. You’re making a huge effort to reduce your debt and are being rewarded with decreased limits. The important thing, however, is that you are getting rid of the debt. As your debt goes on, other companies should be more willing to lend to you. And you are saving a ton of money on interest.

If you have a good credit history, look at balance transfer offers from other banks. You can get a 0% APR for 12, 15, or 18 months. This can help you reduce the debt faster and stop paying interest to the banks that keep cutting your limits.

But no matter what, keep paying down the debt. It is absurd you are being punished for this, but you’re be much better off in the long run.

I feel for the people who are not working and who’s rates are going up all the time. It’s just insane.

January 04
Thank you from Citi: We are increasing your interest rate.
I just got off the phone with Citi. I believe, like all Americans, I helped bail them out from their poor management choices during the onset of the recession. I received my thank you from them stating my interest rate was going to be raised to 20.99%.

These interest rate increases verge on the immoral. They are well above operating costs. They are targeted at good customers who will pay their bills. We are being asked to finance the misfortune of others, the bank and their defaulting customers, not only through our taxes, but through high interest rates and fees to the banks.

After negotiating, I was able to take it down to 18.99%. Still almost 2 points higher than the average reward credit card rate. I acknowledge the good customer service from Tim with whom I spoke. It isn’t his company any more than it is mine I guess. He just works their and I am a minor creditor. Glad he still has a job, but feel for him as he hears from frustrated customers all day. I’m sure he doesn’t get any reasonable compensation for the pain his employer is putting him through.

Well, this card is on the chopping block and will be paid down rapidly. I will miss my American Airline miles, which I was willing to pay a bit more for, but not this much more. Too bad the co-branding partners aren’t stepping in because this type of negative customer experience reflects on them as well.

Some complain about the US becoming a nanny state. Despite congressional action already underway, average consumers need to be protected by these excesses now. If the big banks can’t make money the old fashioned way, then they should be allowed to fail. There isn’t enough value for me to do business with them anymore. Scale was once seen as a way of driving down costs, but it is a way of driving up complexity and creating market systems that fail to serve consumers, employees and the shareholders.

Maybe its time to get credit through a Chinese bank and cut out the middle man.