SO ANGRY!!!

[sunray16]

I am so angry right now, I can't even see straight! I have a credit card that currently carries about a $4,000 balance and I had a fixed 6.29% interest rate on it. The last payment was due Oct 14th and I made it on that day, but it was a Sunday and they didn't process it until the next day, making it late.

I got my statement in the mail today and it went from 6.29% to 19.29%!!! So, of course, I called them. The first person I spoke with didn't tell me what I wanted to hear, so I asked for their supervisor and they told me the same thing. The best they could do was a fixed 17.99% rate and that's it. They can't give me my old % back and that's the lowest they will go. I argued with him until my face started to turn blue and he didn't even blink. I asked for his supervisor and he said all I can do is write a letter to the executive office.

I'm just so frustrated. I really want to get out from under this burden. I can't get DH to understand, so I feel like I'm carrying it on my own and my knees are buckling under the pressure. We're living paycheck to paycheck and I can't seem to get a baby fund started, let alone work on my snowball. Every time I try, something else comes up. I just don't know what to do anymore. As it is now, I need to get my car worked on, but I have to wait until I have the money or it will have to go on a credit card which I don't want to do.

I just don't know what to do anymore. I feel like throwing my hands up.

[lwlynch]

same thing happened with me and bank america. fortunately i had another card with a transfer rate for another year that was reasonable

[mikandmari]

If you had a rate of 6.29% fixed, you probably have decent credit. I'd look for a card with a lower rate, or a low introductory rate. I know it's not good to bounce balances all over the place, but nothing wrong with doing it once in a while.

[Preston]

I hate to say it but it'll probably say in your terms and conditions about it falling on a non-business day and I'd look for that clause to make sure they are following their own policies.

This is why I always give a couple extra business days when making a payment... even online.

With things like the electric bill the companies aren't as picky.. but credit cards there is no way I am getting zonked with a fee/increase in interest.

Good luck with everything.

[sdrjeolsen]

I'm with Mikandmari, I bet you can switch it to another card. Good luck.

[Jamauk]

I agree, I'd switch it to a new card with a better introductory rate.

So sorry this happened, but kudos to you for making it a priority to get it paid down!

[Squirt]

You can find offers for good rates on balance transfers all over the internet, if you are not receiving them in the mail already. Do yourself a favor and do not do business with this bank again. There are those out there which are much easier on you.

I had this happen with a 0% transfer at Citicards. I also had difficulties retrieving my password from their site. When I called in, they were able to read my password, which is a big no-no. It should have been in code so no human could figure it out.

Chase is also a bit stingy as well.

[PB&J]

My credit card company did that to me (GM Mastercard, they suck. lol) Anyway, my rate went up to 32%!!! I did a double, no, TRIPLE take when I saw that on my bill. I instantly got another card and transferred the balance. I got a 0% until Aug 2008 with Capitol One.

I get a little note from GM last month saying they have lowered my rate to 27% and increased my credit limit. Like I am ever going to use that card again!

[sunray16]

Thanks for the ideas and support. I'm still fuming, but now I see that as a good thing. Sometimes I think getting furious is what it will take to get these credit cards out of my life.

I actually have another card that had a $0 balance (I know, I know...should have closed it). They had a interest rate on transfers of 2.9%, so I put in for the transfer tonight. As soon as that goes through, I'm going to close the other account. And I'm still going to write a strongly worded letter to the company about how poorly they treat their customers.

[became4347]

Transfer it, yes. But I would NOT close the account down. Just cut up the card and never use that account again. You don't have your financials in your signature, so I don't know your whole situation. How many CCs? Balances? Etc., etc....How old are you, by they way? (I can't remember if u said)

Let me tell you that closing this account can hurt your FICO score. First, it shuts down your credit history for that card. How long have you had that card? You WANT a long credit history. So if this is the first card you ever got, and you've had it a while, KEEP IT!!!!

Second, if you close it, that will totally screw up your debt to credit limit ratio. You want to keep that unused $4000 credit limit available. It will totally help your score. AND when that crappy CC company sees that you have a balance of ZERO, it will raise your credit limit, which will further help your FICO score go up because it will help this ratio go down! Just use some restraint and don't use that card.

I noticed you put, "I know, I know...should have closed it" Who in the world told you that you have to close any CC? It really doesn't make sense. I pulled my 50 yo uncle's FICO and credit report a couple of months ago and was totally SHOCKED! His credit history was only 5 years old! It was a big factor in his low score. He, too, thought that closing accounts was a good thing. But a 50 yo with such a short history and with other dings is a FICO killer. I am 37 and I have a 20 year history-A TWENTY YEAR HISTORY! I know it sounds counterintuitive, but keep your old CCs open. I once saw Ben Stein on TV pull out of his pocket a stack of what must have been at least 50 credit cards! I wouldn't go THAT far, but I have yet to cancel a CC. I had to get some good transfer deals a while back myself, and I kept ALL of the other cards open.

You should read Suze Orman's "Young, Fabulous and Broke" It really breaks down the FICO game well. Or even better yet, go to www.myfico.com and click on the educational sections to educate yourself for free.

Also, always pay your CCs 3-4 business days before due date if paying on-line or mail 7-8 days before the due date if using snail mail. Even if paying in person, I always go at least 2 days prior to the due date. Late payments also affect your FICO bigtime!!!

Your CCs can and often do check your FICO everyday. It's a soft inquiry that doesn't show up on your report. They have every right to do so. They use this info to change your limits, offer transfer deals, set your interest rates, etc. For instance, if you don't transfer that balance to the good card quickly, the good card (that was offering you a good deal) might now go up on the transfer rate or deny that deal to you entirely as a result of the late payment on the crappy CC. I'm just saying...don't be late again-EVER!

Good luck and I hope you get it paid off quickly!

[became4347]

Don't write a letter. You will be wasting time and a stamp. Just let this be one of life's many lessons: Pay your CCs well before the due date.

First of all, they don't care how you feel they have treated you.

Second of all, and I am going to play Devil's advocate here, this is business. They offered you a CC with specific terms. You agreed to the terms. You got the card and borrowed money from them. They treated you nicely. Then, you paid late (technically late, I know, but that's life) and now they have the right to charge a late fee and jack up your rates. Credit card companies are trying to make as much money off of you as they can. They are not in the "make people feel good" business. They want you to screw up!

I will tell you that I have been in the same boat you are in (late payment). "Mad as hell and not going to take it anymore!" And I'm ashamed to say that it happened more than once in my younger days as I must be a slow learner. LOL! But I learned from my mistakes and learned to play the game-as unfair as it is. You can do it! Play the game and pay those suckers off!

And as for venting your feelings, that is what we are here for! So vent away!!! We actually care!

[sunray16]

To answer a few questions, I'm 28 and my DH is 30. We have 5 credit cards and a few other things (car loans, equity line, college loan, etc). Everything totals about $60K (not including the mortgage).

This particular card we've had since 2003.

I noticed you put, "I know, I know...should have closed it" Who in the world told you that you have to close any CC? It really doesn't make sense.

To answer this question....Dave Ramsey told me to close it. I guess I assumed everyone on this board was on the Total Money Makeover plan.
The way he explains it does make sense. If you stop the cycle of debt and don't plan to borrow money ever again, what do you need a FICO score for? Dave always says his FICO is 0 because he doesn't borrow money. All a FICO is is a score that shows how well you manage debt. I personally don't want one anymore because if I don't have a FICO, that means I don't have any debt either.

[sunray16]

Oh, and I always pay my CC bills online. This is the first time I've ever been "late" and I do generally pay them several days or even weeks before they're due, but this time life got crazy (I have a 6 month old now) and I "forgot" and paid it at the last minute.

I know the CC company has been waiting since 2003 for me to make a mistake and doesn't care that I've been a good customer all these years. So, I'm transferring my balance and not doing business with them anymore. You're probably right about the letter...I shouldn't waste my breath (or the stamp), but it may be therapeutic.

[Jamauk]

Personally, I would close the CC down. Not only for the reasons you mentioned - that you don't care about your FICO score, but also if you do need a big loan in the future (say a morgage for your dream home someday), they will look at all of your available credit and see that as a liability.

Even if every one of your 5 cc's has a zero balance, but combined you have available credit of say $50K - your lender will be leary. Who's to say as soon as they lend you the money you won't go out and max out your cards again? They have to take that into consideration when offering your loan and deciding the rate you'll get.

Considering you have a mortgage, and I'm assuming you pay that on time as well, your credit score is fine. That holds a HUGE amount of weight.

[became4347]

Like I said before, anyone that you have an account with can check your FICO every single day. This affects the interest rates that you pay now-especially on your credit cards. This is happening now. Why wouldn't you want the highest FICO possible so you can save some money while paying them off?

How attainable is a zero FICO? Well, how many years do you have left on your mortgage? Then you will have a FICO for at least 7 years after you pay it off because it will stay on your credit report that long.

No, everyone on here is not a Dave Ramsey follower. If he actually advocates getting a FICO of zero, then he has just fallen even lower in my eyes. He has no debt because he sells millions of books and tapes. He doesn't worry about borrowing money because he will never need to-he has sold millions of books and tapes. I am not bashing him. I like some of what he says, but this is ridiculous.

What do you need a FICO score for??? Let's say that in 20 years you actually get a FICO score of ZERO. (Highly unlikely as some utility companies, municipalities, and even libraries now report to the credit bureaus!) Anyway, let's say it was possible. Credit cards paid off and closed for over 7 years. HELOC paid off over 7 years ago. Mortgage paid off for over 7 years. Not a single solitary thing on your credit report. What would happen if you needed to borrow money? You could borrow against your paid off house, I guess. But that would be secured debt and your home would be at risk again.

I mean, when you guys are needing to purchase another vehicle (as the ones you are driving now will die one day) , how are you going to pay for them? How far away is that scenario? 7-10 years (if you are lucky)? Will you have a zero FICO and the cash to pay for a vehicle by then? Highly unlikely. You will need a loan, and you will be kicking yourself for not keeping your FICO as high as it could have been.

Also, did you know that employers check FICO scores? Insurance companies use FICO scores and their own scoring systems as well to determine your rates? I mean there are lots of reasons that you need a FICO. Actually, a zero FICO would mean that you don't have a credit history at all, and it also would mean that you couldn't get money if you needed it. Besides, you WILL always have a FICO score more than likely so make it the best it can be so it can work for you.

A FICO score does show how well you manage debt. It is a measure of how risky you are to creditors. But it is not the cause of debt! Why not shoot for ZERO debt and a FICO of 850 or as high as you can???

To me, shooting for a zero FICO, so I can never borrow again because I have shut every account down, has NOT stopped the cycle of debt. The cause of the debt is in the mirror, and if I have no control over myself, then I have no power over anything in my life. To me, it just seems like a position of weakness.

To each his own, I guess. Good luck to you.