Why Chase Credit Cards are the worst

One cannot miss that most horror stories about credit cards surround Chase. Maybe they are one of the largest credit card companies but that does not release them from their responsibilities to be fair and treat their customers with some respect. One does not have far than to search for Chase Credit Cards online and hit hundreds of forums dedicated to Chase horror stories. In my book these guys are the Sopranos of the banking industry but experience some referrals yourself at the consumer affairs web site:

http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html

I am convinced Chase bank is evil...

My journey with Chase started in 2002 when I received a credit card account with a line of 20000 and a rate of 8%. I originally used the card for day to day expenses to get rewards but in 2004 due to some family circumstances I had to use the card for some unforeseen expenses which brought my balance to 16000. That is when the fun started. First they found some lame excuse that I am at high risk because of the high balance (they gave me the 20000 limit - I did not ask for it), then promptly used a late payment on an AMEX (I missed it while out of the country) and the "universal default" scheme to jack my rate to 29.99%. That for someone at great risk is practically the kiss of death. In any case I did get the message so I made it a point to pay it off and did so in early 2007. I have not had a balance on that account since. Well a few days ago I went to use the card at a gas station and it was declined. Needless to say my shock when I called and was told that my account was closed because apparently I have too much credit... Normally I would have ignored since I really did not want to deal with these bastards anymore. But this was not the end of it. Apparently all my other cards noticed the closure and started lowering up my limits and jacking up the rates they charge me (that much for the .0001 you get when you deposit money at a savings account).

I have always managed credit with discipline and except of one late payment on an AMEX I had no bad mark in my report until these bastards closed my account which yes it had zero balance (even the service rep that I called was shocked)! I really do not need them and if I need a loan I have tons of equity on my house which I should have used instead of giving them the business at 29.99%. I did think that there was some fairness in the system but Chase reminds me that crooks and robbers do not only hang out in dark alleys, they also work at Chase!

Stay away

Reduction of Credit Card limit....

With the economy turning banks seem to be trying anything to take away as much credit back as possible. While their credit card rates have been increasing steadily, they want to stop giving credit to their "high risk" customers, practically anyone carrying a balance. Recently a lot of people are receiving letters notifying them of a reduction in their credit limit. Their primary reason is usually stated as " Balance owed on revolving accts too high" or Balance too high compared to credit limit. Actually every reduction seems to trigger another one since the balance is getting higher compared to your extended credit limit...

For those having guilty trips note that these reduction and even account closures for inactive credit cards are not necessarily affecting people with high balances. It is a ploy by the banking industry to limit exposure in the credit markets. That much about the 700 billion bailout compliments of the US taxpayer. Now they do not want to give credit to anyone...

A recent NY times articles discusses this new trend here