Because our credit is so maxed out now, we don’t qualify for any more credit accounts. We tried to get one, but were unable to. They said I can write to learn the “reason” they jacked up the rate, but I pulled the applicable credit report and there is nothing new on it. All payments are on time. Also our credit rating has been stable for 3 or 4 months, so it doesn’t make sense.
What I’m thinking is if I can find other money, like borrow from my 401k for a year, I could maybe pay 1/2 of the account down, which looks a lot better. Then, I can ask my hubby to call and request an interest rate reduction. I’d rather borrow my own money than keep paying these idiots. I’d need to work the 401k loan so that the payments would be similar to what they would be with the current payment on the card. I can probably do this later this summer when a previous 401k loan is paid off. Until then, I’ll just start paying everything I can on it.
This is what I was leaning toward doing after having thought about it for the past 24 hours.
You’ll see that I responded to someone else on this that I might borrow from my 401k for a year at a very low interest rate that goes back into my 401k account anyway….to pay at least 1/2 of this so that it looks better credit wise. Once that is done, they might be open to granting an interest rate reduction. If not, I’ll just continue to pay it off and never use it again. And the better the credit rating gets, the better the chances of getting one of those 0% interest rate cards to clean up the rest of it.
I realize that if I close the account, it will make my debt to available credit ratio even worse, whereas if I keep it open and pay the higher interest for now, with every payment, our credit rating improves.It might not be worth the money I would save in interest in the long run.
These jerks screw you from every direction don’t they?
Thanks again for your well thought out advice.
No we never go over the credit limit on any of our accounts. It’s a $7,000 limit, and we have about $200 unused on the card. Like I said, we have all positive accounts (on time, never late, none over limit) on our credit report. The only problem is we are carrying too much debt, according to the ratios, because they only look at my husband’s income with all the balances being in his name, even though they show up on my report too, because I’m a user on the accounts. It looks like we have twice the debt we actually do because of the way they calculate.
We have about $23,000 credit card debt (most of it in both names) and I have about $5,000 just in my own name (he’s not on those.) Of all the credit cards, we have about a total of $1,500 available, which severely hurts our debt to available ratio. He just bought a new car in September but got a rate with Chase Bank at 5.9% which I thought was pretty good. That adds to our debt too, not to mention our student loans and a 0% installment loan we’re paying for flooring.
My husband tried to get them to lower the rate from 22.9 a few months ago and they refused. He said he wouldn’t call them back (not sure why, but I suspect he’s embarrassed), and they won’t even talk to me as I’m not the primary account holder.
I am beginning to feel that closing the account even if it saves $50 a month for awhile would not be the most advantageous route to go.