It seems that Chase card services is finally taking a proactive approach in improving its relationship with its customers. After all of the scrutiny the credit card industry has recently received, with Congress looking seriously into imposing stricter legislation on credit card companies, many of these companies have already made some pretty major changes to the way they do business. Yet, for some reason, Chase held strong to its card holder policies and was slow at making any changes.
Chase did already make one change, which was doing away with the universal default policy that many card issuers used to follow. With universal default, the company would increase the customer’s interest rate if the customer made a late payment on ANY account in its credit file.
Although Chase is finally making these changes, I’d love to see them go even further. Chase is notorious for using the Two Cycle Average Daily Balance method to compute finance charges. For many cardholders, this results in paying substantially more in finance charges than with the standard Average Daily Balance method. Yet, since so many people are unaware of the fact that there are different methods used to compute finance charges, they typically don’t even know they’re paying more than they have to.
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This isn't true. Chase is still the worst company out there for jacking up your APR for any possible reason. I just closed my account with them. I called each of ym 4 credit card companies and requested a lower APR given my perfect payment history and the fact that I was making double and triple payments. Discover, USAA and AMEX Blue all lowered my rates no problem – each is now under 10%. Chase however informed me that due to something on my credit report (FICO score in the mid 700s) they were going to raise my rate from 10.9% to 23% in 30 days. My credit report has nothing derogatory on it. My only fault is a high volume or loans and some credit card debt which as I mentioned I am paying down in huge chunks.
Here is why I think they did it. My Chase minimum payment was around $50 and I was paying chunks of $600. I was going to have the card payed off in 7 months at that clip and they realized to make money off me they had better rip me on the interest rates.
Fortunately on of my other cards was happy to raise my limit and give me a fixed 5.9% balance transfer deal on the entire life of the transfer from Chase. My advice, don't do business with Chase.