little (big) dillema

[mancunian]

Hi

I would appreciate your help on this...

i got a letter from chase just before shabbos and this is what it said:

"B/c account recently went over credit limit [...] The default APR of 23.99% will be applied to all [...] future transactions."

Now...

I dont care at all about the APR. I will just put the balance on another card or something like that. Even paying those rates isnt so far out of the question.

What i am worried about:

I have perfect credit except some high balances (which are short term).

1. Does this mean I defaulted? I went over my limit twice! ?? Now when they ask me if i've ever defaulted i have to say yes?!?! Or does it just mean that they raised my APR and thats it?

2. The letter is dated 1 day before my current billing period, and it says that the rate change will take effect at the end of my NEXT billing period (or to be specific the biggining of the following one).
     A. If i pay the full balance before my statement posts, a little over a week, and then call and cancel, will that solve the whole thing? It didnt take effect yet...
     B. Does it not matter that it didnt take effect yet?
     C. Should I make sure to call before my statement posts?
     D. Or should i just call ASAP?!

3. Should I call to ask them to reconsider this action?
I have good arguments...
     1. I was unaware that it was such a big deal to go over your credit limit! (its true! you just told me that the other day!

That was the old rule, nowadays if you use your limits that means you're in financial trouble and will get your cards closed by issuer!

). & I only have a 2 year credit history and I'm not so experienced with these things and i just didnt know it was an issue.
     2. Chase even waived the fee the first time and made like it was no issue! They couldnt have given me some kind of warning that next time im totally screwed or something!?!?
     3. When i went over the limit it was not by swiping, it was either finance charges or automated subscription things - again, i have a two year credit history, and it just took a couple times to realize that when youre maxed out the finance charges put you over every month.
And obviously its my fault and its not chase's responsibility to provide me with credit education etc...

     A. Could it hurt to call? the letter said that i can reject this and they'll close my account and i can pay by my old terms. I dont want to do that - I want to close my account. You think they might just close it or something if i call and ask not to raise my APR?
     B. If i do, should i first pay off my full balance - or then is it more of a risk that they'll close it?

4. When i call to cancel and they ask why, should i say the APR increase and repeat my arguments or could  they end up closing it and writing closed by issuer - would i be better off just to make no comment?

5. Is this not a big deal at all & im just making myself crazy?

what i've really learned is that if your going to play shtick with your cards and carry a balance etc., dont do it with companies you dont want to piss off like amex chase and citi (& fia?). I just opened a revolution card and a gap card...

I would really appreciate your help/input on all this - thanks very much

[mancunian]

no one has anything to say?!?!

i know that everyone else here has absolutely no debt whatsoever - but give me break

[Danfantoyota]

its an interesting question! but infortunately i have no answer for you

sorry!!
im just not too experienced in all this stuff...

[mancunian]

finally at least a response!

im very nervous - u see ive never done anything to mess up my credit - if i would have known it was such an issue to go over the limit i wouldnt have!

i guess the system actually does work to analyze risk.

but really all i want to know is:

is this considered defaulting?
what is defaulting?
is defaulting bad for your credit?
if so what are my options...

nuuuu

[me]

Call them and ask them!?

[mancunian]

ya but i dont want them to close it or anything - im sure someone here knows...

[eli1571]

Well if ur saying u don't care about the higher apr y don't u just call them and explain ur story and ask them that they shouldn't post it on cr since its ur first time (supposing it is) i can't believe the'll close ur account if its really ur first time u went over and ur ready to pay it off. But its all just what i think nothing that i know good luck   

[mancunian]

Well if ur saying u don't care about the higher apr y don't u just call them and explain ur story and ask them that they shouldn't post it on cr since its ur first time (supposing it is) i can't believe the'll close ur account if its really ur first time u went over and ur ready to pay it off. But its all just what i think nothing that i know good luck   

no its the second time i went over thats what i said before - the first time anything went wrong with my credit if indeed this is something bad...

it says in the letter that if i dont want this change they'll cancel the card, which means i guess that its my decision, however i dont want them to impose that for any reason. Or who knows - could be if i offer to pay it off they'll say ok and lower my credit limit to $200 or something.

I guess i can call another company anonymously and ask, but why cant anyone here just let me know? (Ahem. Dan. Paging. *Ahem*)

[eli1571]

Y don't u just pay it when its due and let them raise ur apr and just make sure u don't go over Again or just use a different card from now on

[mancunian]

Y don't u just pay it when its due and let them raise ur apr and just make sure u don't go over Again or just use a different card from now on

THATS WHAT I WANT TO DO!!!

I just want to make sure they're not hurting my credit.

What are the consequences (for your credit) of defaulting??
Didi i default??

[eli1571]

THATS WHAT I WANT TO DO!!!

I just want to make sure they're not hurting my credit.

What are the consequences (for your credit) of defaulting??
Didi i default??

i don't think that's called defaulting all u did was went over the limit defaulting would mean not paying  but Again not sure

[steve2]

Y don't u just pay it when its due and let them raise ur apr and just make sure u don't go over Again or just use a different card from now on

    I agree as long as a person pays their bill off in Full then there wouldnt be any % being charged be it 5% or 45%

 However, if you should say make a mistake and paid say $768 when it should have been $786 and didnt realize till you got got hit with the finance charges, on your next statement thats when it can hurt.

 Most banks do not like it when you charge more then you are allowed and I think some will charge for for doing so, the 1st time they will work with you after that they dont want to hear why you did it

 I wouldnt lose any sleep just make sure you pay the bill in Full and dont repeat it for a 3rd time

[mancunian]

well i spoke so a friend he said that getting the default apr is not the same as defaulting (which would be an issue) - i guess i didnt have to get so nervous.

However, if you should say make a mistake and paid say $768 when it should have been $786 and didnt realize till you got got hit with the finance charges, on your next statement thats when it can hurt.

even 1 months interest you on $800 @ 24% would be $16 - not such a big deal.

& i dont plan on doing it again

now i just have to figure out getting more cards while i have high utilization. Not sure why but AMEX just gave me another card and Chase declined me (well maybe its more than just a coincidence w/ chase...)