March 12, 2010
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News: Some of the many ways Chase was good to me
My experience started with a 0% interest-credit card Chase offered me just over a year ago (just before the "burst"). The scenario goes like this: The offer came with only a $3,000 credit limit. I asked for it to be raised. Chase explained I already had one of their credit card accounts (at 7.5%; $3,000 limit), posing a total risk exposure of $6,000 to Chase. They were kind enough to close the 7.5% account and add the $3,000 limit to my new 0% card. Later, when I reached the "33% utilization ratio" on the 0% account ($2,000), I tried to go online and just "push the button" to raise my credit limit. The button had been removed. (This was when the "bubble" had just burst.). I had to call an agent.
The agent explained that Chase was having to cut way back on risk exposure world-wide (millions of accounts were having credit limits reduced already). Chase could not raise my limit at that time. I hated to risk my good FICO score by exceeding the 33% utilization ratio but, I needed to charge more than $2,000 on that 0% credit card (I was investing that cash elsewhere). So I maxed the card out for the remainder of the 0% grace period. Then, just before time ran out on the freebee, I paid the account completely off. For a year, I was able to use Chase's $6,000 for other investments and it didn't cost me a dime in interest.
I spent the next two months laying low, using older credit cards (to keep them alive) and waited ‘til the credit bureaus were alerted that I was no longer in violation of the 33% utilization ratio. Sure enough, just after the two-month turnaround when the bureaus catch up on monthly updates, I started receiving sweet deals in the mail again. Now I have another year of free interest with Chase with a credit limit that's lower than what I'd like. So, I'll call them and see if they'll close my old $6,000 account (which has now jumped to 7.5% interest) and add that $6,000 limit to my new 0% card.
I've been playing the game now for ten years now and only been burned once. Watch out for credit card shysters. The ones I've targeted are Capital One, Wells Fargo and the USBC clones (they go by many innocent names as the bait).