My Experience with a Credit Card company

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It's just another instance of punishing those who follow the rules, and ultimately making them feel like suckers for being responsible.
 
Beaglebay said:
It's just another instance of punishing those who follow the rules, and ultimately making them feel like suckers for being responsible.
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Who do you think will bail out the millions of retirees who chose to live fun lives instead of responsible ones by saving for their own retirement? Answer: the responsible ones who saved for their own retirement.

And perhaps a few future tax payers.
 
Mr. Happy Sock said:
Well, I had a credit card that I took out one of those convenience checks on a year ago. $10,000.00, and it was 0% interest for the first year with a $75 fee to borrow the money. It was a no brainer, and at the very least an interest free loan for a year, so I jumped on it.

Well, the time has come where the interest Rate Jumps to 17.99%, and there's no way I am paying even close to that. The money has essentially sat in my checking account, and I figured I'd try and work out a deal with the C.C. Company where I'd pay a little interest and get to keep the $$$$. Everyone wins, right?

Here's how the conversation went-

Credit Card Company (CCC): How can I help you, Sir?
Mr. Happy Sock (MHS): I'd like to work out a deal with your company on the balance on my account. There's no way I'm paying 18% interest on the $$$$ I owe you.
CCC: I'm sorry, sir- there's nothing we can do to help you. The interest rate stands at 18%
MHS: I'd like to speak with one of the people who can make this decision please

(I get transferred to a boss)

CCC: Yes sir, how can I help you?
MHS: Hi, I'd like to work out a deal with your company on the balance on my account. There's no way I'm paying 18% interest on the $$$$ I owe you. Your company really should work with me on this, because I am prepared to pay off the complete balance owed to you (With the interest-free loan you provided to me in the first place). Either work with me and make SOME $$$$$ in interest, OR get nothing. It's really up to you, but I'd like to keep doing business with your company.
CCC: Sir, are you going through some type of hardship? If you are unable to pay your debt, I can transfer you over to the hardship department......
MHS: Uh, NO.......(I explain situation for the 3rd time)
CCC: Well, sir- I'm sorry but we aren't offering any lowered rates at this time.
MHS: Sooooooo.........You'd rather make Zero dollars in interest rather than a few bucks off of a rate of....say 4-6%?
CCC: I'm sorry, sir.......We can't do anything for you at this point
MHS: No problem. I'll send the check out to pay the loan off in the mail today. Thanks for your (Lack of) help- have a nice day!
CCC: ..............Uhhhhhh......Ok Sir- Have a nice day.





Was I being unreasonable? Can someone explain this logic to me? Why wouldn't they want to make money in interest off of a fish they already have on the hook?

Morans
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What is their incentive to give you a 5% rate on money that they have earned 0% on for 1 year? They'd might as well just take their money back so some other poor guy can pay them 18% interest. You weren't being unreasonable to try, but I wouldn't say they made a bad business decision by not agreeing to earn 5% on their money. Just my opinion.
 
3 Point Stan said:
Pay it off.

You'll get the same offer in a few months. Do it again, but stick it in a high-yield interest savings account (line an ING Orange account or something like that - I haven't checked to see which of these accounts are offering the highest interest rates recently) and then do the same thing.

Rinse, lather, repeat.

I did something similar a couple years before I got married. Stuck it in a CD or an IRA (had to commit to a year which was the kicker) so you just have to ensure you have this kind of $$$ laying around to pay it off before you can withdraw it. If you've got it, it's a good way to earn $500-$1000 or so. But if you're not careful, you can f*** yourself royally for not much of a payout by contrast.
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Let me know when you find one of those "high yield interest savings accounts". The best rates you can get nowadays are still under 2%.
 
Mr. Happy Sock said:
The supervisor was a very nice person who explained to me that as of last June, Legislation was signed into effect that protects consumers from having credit card companies jack up the interest rates ridiculously high. The flip side of this legislation is that the consumer who is trying to do what I am trying to do (negotiate a lower interest rate on an account that is in good standing) isn't possible; I need to actually go into default on my account (60 days past due) before they are able to work with me and there's nothing they can do about it; it is now the law.

In short, The company cannot work with me even if they wanted to (Unless I defaulted on the account and destroyed my credit). I thanked her for the explanation and told her a check would be in the mail tomorrow to pay off the account.
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Not to make this political, but you can thank your friendly neighborhood Obama administration for this. Their warped world view is that everybody who has good credit and pays their bills should share the risk with those who do not. :shrug:
 
Don't worry, I'm sure the credit card company still made $$$ off of you.

By selling your personal information to their "affiliates"
 
Some time ago I decided against using credit cards for anything but emergencies. I have an American Express that I use for gas and purchases like appliances, for instance, but that has to be paid each month so I never carry a balance. Using it for an important purchases does give you some protection in the event of a dispute with the seller.
I got a notice from Sears that said they were going to cancel my account because Of inactivity. I believe that if an account is closed you take a hit on your credit rating since
the amount of credit you have available decreases.
Anyone know for sure if this is correct?
I find this rather annoying if true.
 
patswin said:
Some time ago I decided against using credit cards for anything but emergencies. I have an American Express that I use for gas and purchases like appliances, for instance, but that has to be paid each month so I never carry a balance. Using it for an important purchases does give you some protection in the event of a dispute with the seller.
I got a notice from Sears that said they were going to cancel my account because Of inactivity. I believe that if an account is closed you take a hit on your credit rating since
the amount of credit you have available decreases.
Anyone know for sure if this is correct?
I find this rather annoying if true.
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It is my understanding that the total amount of available credit actually hurts your credit score. So, if a card company decides to terminate your line of credit with them, I think it may actually be helpful to you.

The rationale is that if you have a total credit line (all cards) of say, $50k, you could conceivably go out today and buy a car with your card. At that point, you become a huge credit risk to potential lenders going forward. Just having the ability to do something stupid like buy a car with your credit card is bad for your credit score.
 
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