J
Wilmington,#2Consumer Suggestion
Tue, November 02, 2004
Companys run a "soft" pull on credit bureaus 4 times a year of all of their clients to see what accounts are considered "Risk Accounts". This proccess is called a "Quarterly Review". When they do this they also assess levels of risk to each account. By doing this they decide if they should A.) Reduce the credit line to limit losses, B.) Increase interest rate to accelerate a payoff, C.) Close the account all together. I know you say you have never missed a payment "But" there are other indicators that can affect you negatively credit wise. 1.) Too many inquiries. 2.) Debt to income ratio. 3.) Too much available credit 4.) Too many new accounts. There are quite a few more that they use as well depending on the company. They also should have sent an "Adverse Action letter" explainig in detail why they made that decision so that you can have the opportuntiy to dispute it with the credit bureau or understand what you need to correct on your credit for the future. Hope that helps you.
Danielle
Hollywood,#3Author of original report
Tue, November 02, 2004
I know about fine print. I know the companies CAN change stuff whenever they want. What I don't understand is why they would change a good customers rate from 4.75% to over 18%.
J
Wilmington,#4Consumer Comment
Mon, November 01, 2004
I have worked many years in the credit card industry for numerous companys (Chase included). 9 out of 10 of these major name credit card firms have a one liner in there terms and conditions that states (in a generalized way)"terms and conditions are subject to change at companies discretion". Convieniently this is placed not at the top in plain view but buried in the fine print. So regardless of how fair or unfair you agreed to this when you signed up. I am not in support of their actions just letting you know before you get to far ahead of yourself that you may want tot research that first.