Chase has a particularly nasty way of getting into their customers' wallets.
I had a cash withdrawal with a 'guaranteed' interest rate for the life of the loan as long as I wasn't late. I put it on automatic withdrawal to take care of that evenuality and forgot about it.
Some time later I looked at the loan--and it was considerably more than my original debt. Seems Chase has a 're-evaluation clause' in their fine print that says they can give your credit a negative rating, even if you are paying them on time, and kick the interest rate up from 7.5% (in my case) to 30%.
You'd think they'd have to at least notify you with a certified letter or something noticeable since they are changing a contract, right? But all they did was send one of those little fine print notices hidden among the ads stuffers for $4.99 sunglasses and such.
Yes, Chase did that to me as well. I called them and they said something along the same line. THAT is what congress should address: the option to change the agreement based on such clauses. I have 1 CC now, in case of an emergency with the car or need to fly someplace.
I posted my story on another thread, here it is.
I had a card with about 6.9% interest that I paid off every month until I bought my home, then I accepted the 2.99% cash offer and maxed out the card for a down payment.
After a few months of $1000.00 a month payments, I used the card for about $3,000.00 worth of household stuff like a refrigerator and shed.
When my statement arrived I saw that the $3000.00 portion was collecting interest at about 19%, and I learned that it was hidden behind the huge amount of the initial total, meaning that nothing I paid on the initial amount would go to that smaller part that was burning up the 19% interest.
I threw everything I could into paying off the card quickly, so my mistake and the Citibank mafia tactics only cost me a few hundred dollars, but it was one of the shadiest business dealings I've ever seen, and I know many people would have been wiped out by that immoral act by the credit card company.
The reason given for my interest jump from 6.9% to 19% was that by accepting the promotional offer for almost the card limit, I reached the high interest red zone.
A side note is how soulless the employees were at the other end in our conversations, I was reminded that you need to look at what you do for a living when you ponder what a high quality, wonderful, moral person you are away from your work.
That is but one of many reasons my wife and I pay off our credit cards every month and keep no balance. We only use them for regular expenses and only for points. In fact I just cancelled my discover card. Sam Club now takes mastercard so I am down to just 2 cards, a visa with great airline points and the MC which gives me point I redeem for home depot gift cards.
Mine got kicked up to 30%, but it was Visa. Once it's paid off, I'll not use it again.