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Originally Posted by Hedwig
It sounds to me like they are following BoA's lead. Several years ago, BoA stopped rate jacking because you were late on another account at another bank. They will, however, raise rates on an account if that account is late. I think it said two times within a year late and they can increase to the default rate.
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Rate jacking is not the absolute worst a bank could do to you. The following story is based on true events: A friend with a $40,000 BoA card, a $5000 Chase card and an Auto Loan buys a $38,000 item with the BoA card (11.4% made sense.) Three months later, BoA closes the account and invokes the high balances versus credit limit BS. Called them up only to find out that he's welcome to apply for another card...
Quote:
Originally Posted by Hedwig
Notice Chase said they wouldn't increase rates based on info from the credit bureaus. To me, that means they'll still increase if you're late on an account with them.
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Same friend, pays off the Chase card after carrying a good balance through the introductory period and making minumum payments. Next letter from Chase is a notice about his new credit limit: $1,000.
This all reminds me of Al Pacino in "The Devil's Advocate":
Look, but don't touch... Touch, but don't taste... Taste, but don't swallow...