Watch those cards

[FROG MAN]

If your like me junk mail hits the trash.Most of it I never open. We always get credit card offers along with special checks for existing accounts etc.It's easy to over look something.

 

Credit card banks are getting nervous.I guess the loses among the subprime lending crunch has rolled over into the credit card accounts. Good paying customers with good credit and no late fee's ever are being reclassified. One of my wifes accounts is going from 13% to 29.99% if she wants to keep the account open. An immediate letter before the april deadline stating she wishes to deny the increase is necessary to freeze the account and hold the current apr. Last month I had one of mine go from 7.9% to 19.99% for no reason. I gave there business to someone else for 7.9%. Why banks penalize good customers who never default on the terms is beyond me. It's not my fault they lost there A## somewhere else. Watch your accounts.

 

[Squeeze]

.... One of my wifes accounts is going from 13% to 29.99% if she wants to keep the account open.

 

An immediate letter before the april deadline stating she wishes to deny the increase is necessary to freeze the account and hold the current apr.

 

Last month I had one of mine go from 7.9% to 19.99% for no reason.

 

I gave there business to someone else for 7.9%. ...

 

Froggy, could you please rephrase these Sentences ??

 

I'm well aware of the Subprime Crisis, as it had a hard hit on our Stocks, as well as around the whole World.

 

But what are you talking about with % ? Percent ? For what ?

 

Stupid foreign Minds wanna know and understand ...

[FROG MAN]

Squeeze this is a change of terms for credit card agreements. I can see a small change in interest rates as outlined in the agreement for variable rates. But a 17% increase just to keep the account open. Lending rates are dropping but existing card holders rates are going up. I have had two different banks change the terms on our accounts.

[Squeeze]

i Do not understand ....

 

You have a Credit Card ... all Charges for two Weeks or a Month culminate and are on the Bill the Credit Card Company is sending you. You pay the Bill in Time.

 

 

But where are the 13%, or in the Future the 29.99 Percent, used in that Deal ??

[FROG MAN]

Sorry Squeeze I didn't realize you were in Germany. I'm talking about revolving charges on existing lines of credit. Let me give you an example. Last year when my daughter decided to go back to college she needed a car. I bought her a $4500 car using a unsecured line of credit. No collateral needed and a cheaper interest rate then a local bank wanted with collateral. Those lines of credit are harder to get now and existing lines (some but not all) are receiving rate increases.Rates usually jump to a very high default rate for late payments or other defaults on the agreement. Everything in this country is changing. Your credit score and reports are being reviewed by every business and some employers.Credit card banks can even raise your rates because you breeched a contract with someone else. I monitor my accounts almost daily and pay all bills early.

[Squeeze]

Thanks, i think i got it...

 

You payed 4500 for the Car by that Credit, the Bill came in, with some other Charges, e.g. 600 USD, you owe 5100. You payed 2500 on the Bill. The remaining 2600 Bucks are charged with 13 per cent Interest. Next Month .. next Payment ...

 

Man, 29.99 Percent .... where can i start my Loan Business :whistling::whistling:

 

 

This Kind of Credits Card and this use are not very common here in Germany. Normally we, use our Bank Accounts for such Purpose, which allows us the same Procedures.

 

 

As for the Interest ...

 

they NEED to get all their 'lost' Money back. ASAP ....

 

 

This goes also around the World. We have a Stock in 'DAX', our 'Dow Jones', they announced that they are not affected in August last Year. That said, three other Banks are gone bankrupt and have to be overtaken by white Knights, others have lost literally Billions of hard earned Money.

 

So, this Company finally had to announce that the have to forget about 400 Million in last Quarter 2007 .... The Stock went down 35 Percent that Day, another 20 Percent the next Day, then came the Collapse last Week ...

[Squeeze]

Oh .. i forgot to mention ....

 

 

Someone has to pay the Price of the Losses .... but just in Case you can figure, it should not be the Company who screwed up... guess who will pay it ??

 

Those who have already lost their Home or have nothing left in their Pockets ? The Companies ? NO ...

[FROG MAN]

I own my home so no danger of loosing it. What were banks thinking? Risky loans offering 103% total financing with variable rates to home buyers. Some only paid back the interest on the loans for a number of years. Your right businesses don't loose money just pass the cost on down the line. Consumers tighten up and slow spending. The stock market drops and we still pay.My investments are down by 25K now.

[bongobobny]

Yah! I had Citi cancel one of my cards for lack of use. Fine! Wait until I use my "Thank You" rewards and then I plan on cancelling the rest of my Citi cards as well!

 

I pay my balance in full every month unless it's a new card that's interest free for a year. If a credit card doesn't do something for me, then I don't have it. So far the GM card gives the best reward, with Chase "Freedom" coming in 2nd with 3% back...

[FROG MAN]

Yea I know Bob. They canceled one of mine for inactivity. Zero balance and they canceled it. If you use it they raise your apr. It's a no win situation. Our Gm card has been good to us and so has American Express. I bought two new vehicles with the help of GM reward dollars on top of there best out the door deal.

[bongobobny]

Yup, over $5000 so far with another $1500 for the next one! Bought Mr. Monte with the "factory pricing for everyone" deal in '05 as well as a $2000 rebate (or 0% interest). Ended up with a $30000 car for $21000! Gotta love Generous Motors...

 

Word to the wise. Those credit card offers we get bombed with on a daily basis? Make sure you shred those ofers, not just toss them unopened in the trash. It could lead to identity theft...

[FROG MAN]

I use GM for auto and motorcycle insurance. They gave me more coverage for a cheaper rate over Nationwide. Nationwide lost my business after 30 years. Saved $600 in annual premiums without the long term discount.

[bongobobny]

I'll check into that, Mr. Frog! I am using Nationwide for car and home and a different one for motorcycle. The motorcycle only costs $90 per year but the 2 cars are running over $800 apiece...

 

I use AAA+RV for roadside assist.

[mbrood]

It's a scam.

 

The old "I'm your local banker" just isn't there anymore.

 

They are following the "sheep" mentality... "We are going to raise your interest rate because... you won't bother to do anything about it... and because...

a: you have zero balance (paid in time)

b: your check to the utility company was late by a day (out of 12 years!)

c: your "other activities" are under question. (somebody didn't think you NEEDED to buy that motorcycle... "unexpected activity")

 

They fully expect you to bow your head and TAKE the rate hike... then they use that to "hit" others.

 

Don't be a sheep. Pay on time, keep the creditors informed of ANY problems and tell them HOW you will (can) work with them. DUMP those that won't work with you. One of mine jumped to 29% because I wasn't keeping a "minimum balance". Minimum balance? I used the card and then paid the balance off. They told me they REALLY want to see about 20% on the available credit used (paid monthly at the minimum payment at 29%)... that shows I'm a "loyal" customer. I asked if THAT would reduce the rate and the gal said, "No, but it shows you are a loyal customer."

 

WE don't work for them. They work for OUR dollar. Like any company, if the workers don't perform, try to negotiate and then drop them.