Interest rate, scam!

Jeff Gilbert · Mar 9, 2003

I'm normally not one to openly discuss my financial situation with just anyone but here goes anyway. I've had a couple of rough months with unexpected expenses. Since I've had the same Visa card for over 20 years I figured this is what they are for. In the past when I've used it I usually pay the entire balance at the end of every month, as it is more for convenience sake. I believe the minimum payment was around $60 so month before last I sent in a payment of $200. Last month I was more pressed for cash so I skipped the payment because I had what I considered "over paid" and was ahead of my scheduled payment. That was my bad because this months payment, which I mailed another $200 hasn't been received. I got the "CALL" today (Sunday) asking if I will be making a payment today. I explained I had mailed the payment 2 weeks ago and while I was looking at the statement noticed a whopping 26.99 APR! I asked the lady, since I had her on the phone, about the rate plus late fee and she said it was because I was delinquent. She didn't much care about my explanation and said basically it was tuff and that was the rate I would be paying from now on. At her recommendation I called customer service and told them they needed to reduce my rate and they told me the same thing. I told them they would be receiving a check for the entire balance and they could cancel my account. This pisses me off!!!

To keep this on dirtbike topic, I got an application for the AMA Visa, anyone using one?

Wakisashi · Mar 9, 2003

AMA visa would work the same way , it is just another card company and has the same policy.

Senior KX Rider · Mar 10, 2003

moved

Pantera · Mar 10, 2003

Drop them, there are lots of credit card companies that want your money

Papakeith · Mar 10, 2003

I agree, drop them. Just Friday I got two Visas in the mail, not applications, visas. One with zero interest until april of next year, one with zero interest until june of next year. That's on balance transfers. I think the rate was somewhere in the 10's for new purchases. That's not even counting the dozens of other pre-approved applications I recieve every month.
There are too many CC companies out there for you to live with that rate.

mx547 · Mar 10, 2003

the biggest scam is that now if you are late on one credit card, the others can raise your rates too, even though you are not delinquent with them.

gwcrim · Mar 10, 2003

I'd give them one last chance. Call 'em up and tell them you're gonna move the balance if they don't reverse the interest rate hike. That usually works.

bscottr · Mar 11, 2003

Originally posted by Jeff Gilbert
At her recommendation I called customer service and told them they needed to reduce my rate and they told me the same thing. I told them they would be receiving a check for the entire balance and they could cancel my account.

About 5 years ago I had a similar situation. The difference was that even if they received payment 1 day late they could increase your rate. (read the fine print, I didn't) It doesn't even have to be 30 days late. I stroked the check for the balance and closed the account. Two weeks later I get a call, "we'll lower your rate if you keep your account open." Imagine that!

Predatory lenders just hoping you don’t have the ability to pay in full. Bastages. :moon: :flame:

Drop 'em. :thumb:

JuliusPleaser · Mar 11, 2003

I've had an AMA VISA card for a couple of years. They matched my current interest rate when I applied, and the card even has a picture of a vintage dirtbike on it. The card is issued by MBNA, but they haven't done anything to tick me off. . .yet.

It's the only card I have now. :thumb:

Lew · Mar 11, 2003

When you get costomer service on the horn, just keep asking to speak with the supervisor. Eventually you will get up the chain to someone who can make decisions. Like any other business, the interest rate is negotiable. If they won't help than pay em off and close the account.
Lew

Smit-Dog · Mar 11, 2003

Originally posted by Jeff Gilbert
... Last month I was more pressed for cash so I skipped the payment because I had what I considered "over paid" and was ahead of my scheduled payment.

I feel your pain man, but it's not a scam. Paying monthy on any outstanding balance is part of the deal.

Let's say the minimum monthly payment was $50, but you paid $150. Come the next billing cycle, you can't decide to skip the payment because you "overpaid" the minimum from the previous month. Paying on a monthly frequency is part of the deal, whether it's the minimum $50 or anything over that. Would have been better off to pay $100 the first month, and $50 the second instead of skipping.

Like others have said, there is so much competition for your business out there. Customer service may "forgive" or reverse the late charges if you are a long-time customer, or you indicate that you will take your business elsewhere. Worth a shot. Good luck!

motometal · Mar 12, 2003

there are exceptions, smit...my credit union slides my monthly loan payment back a month for every multiple of the minimum that I pay. Helps out if the funds are low for a month or so. I realize this isn't the same as a credit card.

Some of the telemarketers that work for the cc companies have instructions to treat you differently or transfer you to a special dept. if you actually threaten to cance. It is understandable to not want to threaten (honey vs. vinegar), but this can work against you. don't be afraid to let them know you are on the verge of cancelling TODAY.

the other thing to watch out for...lets say you carry a $3000 balance at low or no interest and just make min. payments, then you decide to make a purchase on the card. Chances are the purchase interest rate is higher, and they won't let you pay towards the purchace until the $3000 balance is gone! So, you will pay the higher interest rate on your purchase for a long, long time. This is a bummer, but we have to give them "credit" :silly: for cleverness.

Use one card for your "low interest loan"...don't keep that one in your wallet or use it for purchases, use another card for purchases!

Julius, wasn't yours an "APA" card (American Pimps Association)? :debil:

motometal · Mar 12, 2003

I was told once that even if you are never late on payments, it looks bad on your credit record if you have switched cards too many times.

any opinions/experiences?

Smit-Dog · Mar 12, 2003

The next time you get a loan, ask your lender for a copy of your FICO or Fair Isaac credit score. If you want to find out the factors that affected your score, both negatively and postively, you'll have to get a breakdown report from Fair Isaac for a small fee.

Basically your score is determined by the amount of money you owe, how long you've had a credit history, the types of credit you're carrying, your payment history, and if you have a lot of "new" and available credit.

Your FICO score can affect the interest rate you're charged. Higher score = better rates. Check out these links for more info.

http://www.fairisaac.com

http://www.myfico.com

Here's a handy FICO score calculator that tells you how much you could save by improving your score - or how much more you may have to pay because of a lower score.

http://www.myfico.com/myfico/CreditCentral/LoanRates.asp

Jeff Gilbert · Mar 12, 2003

All this is fine I guess but everytime I have to apply for credit ie; car or something the people in the credit department always tell me it's not everyday they see people without any blimishes on thier credit record like me. I guess I have one now but I'm not going to worry about it. My dear sister and her hubby bought a new house a few years ago. She works for one of those "top guys" at an airline company and has been there a long time. When they bought thier new house they bought as much as they could afford. In fact everything they bought was to the limit of what they could afford or in reality make the minimum payments on. After 2 years in the new house the City of Arlington realized that the property they lived on was appraised as an "unimproved property." The back taxes assesed managed to raise thier house payments approx $200. per month and guess what, it was more than they could afford. Then they got this brain storm of a $45000. home improvement loan. I mentioned that she about her job because the chance of her relocation is pretty good I think and how could they sell a house for $45k more than it's worth? They added some siding and windows for $15k and spent the other $30k to help reduce credit card debt. It was about 3 months later that they filed bankruptcy. 6 months after that they both bought new cars again. 6 more months they bought another house. 2 years later they bought another new house and continue to trade in for new vehicles about once a year. Now I love my sister but I ask where the fairness in that is. I have worked diligently all my life to maintain good credit only to get hosed over this time while they live "high on the hog" and don't worry about what it costs.

I'm just rambling here, I have no intentions of going down thier path but I would appreciate a little respect and be treated as a valued customer for the manor of which I've conducted my personal affairs thus far.

Off soap box, Truespode mode off. ( :p )

Smit-Dog · Mar 12, 2003

Jeff - I would bet case of Labatt Blue that 1 skipped CC payment won't even show up on your credit report.

Don't quote me on this, but this same topic came up a few years ago, and someone mentioned that the CC company has to explicitly decide to report the missed payment to the credit reporting agencies.

Not all of them do this for 1 skipped payment, especially if you've had a perfect record, and continue to pay. Now I'm pretty sure that if someone has a habit of skipping/missing payments, the CC company will damn sure report it.

As far as bankruptcies, what used to be a major financial stigma for most is now just a minor setback. Creditors want to loan money so badly, even the unemployed can get credit cards and car loans. Even though I had a decent job at 18 (1982), it was a major deal to get approved for even a single credit card. I think that my step-dad had to co-sign. Now CC offers are as annoying as AOL CDs.

Interest rate, scam!

Jeff Gilbert

Wakisashi

Mod Ban

Senior KX Rider

Super Power AssClown

Pantera

Papakeith

COTT Champ Emeritus

mx547

Ortho doc's wet dream

gwcrim

bscottr

JuliusPleaser

Too much of a good thing.

Lew

Smit-Dog

motometal

motometal

Smit-Dog

Jeff Gilbert

Smit-Dog

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Interest rate, scam!

Mod Ban

Super Power AssClown

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Too much of a good thing.

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