Credit Card Rant

[nitramaj]

Hi everyone,

I used to post every once in a while on msn, but this is my first time on proboards.

I just closed my credit card with Chase and I'm wondering if I did the right thing.

Here's the info:

I'm 30 years old and I've had my card with Chase for six years. It's my oldest credit account. I have a great history with them and I have credit scores in high 700s.

I owe Chase about $850 on my current statement. I paid $431 to them from my state tax return, and it went through on the 20th. Today I sold my old car and was going to use that money to pay off my remaining balance. When I logged on to Chase's website, the website wouldn't let me make another payment because they only allow payments to be made every three days.

I then called Chase customer service and was told the same thing. Payments are only allowed to be made every three days. Since my statement closing date is tomorrow, the 22nd, I would have to pay them interest on the remaining balance. Still, they said there was no way for them to take a payment from me. I could have gone to a branch to make a payment, but the nearest branch is about a six hour drive away from me.

I felt so frustrated that they would not accept my payment, and that they offered no solution to my problem, I asked them to close my account, which they did, and now here I am.

One of my financial New Year's Resolutions was to pay $0 in credit card interest in 2011. I'm still going to have to pay a little bit to them because of this, and my credit score might take a little ding because I closed my oldest account, but I don't want to do business with them anymore.

So, did I do the right thing?

[shanendoah]

Its pretty common for credit cards to only process payments every so many days, or only take so many payments a month. (One of mine will only let me make 3 payments in a month.) This information is generally easy to find on the credit card site, under the payment screens.
I understand that you didn't think to look for this information, but it is easily available.
To me, it sounds like you would have had to pay interest anyway, unless you knew when you were going to sell your car. And if you knew when you were going to sell your car, why didn't you wait an extra couple of days and just pay it all at once?

As for a credit ding, I don't think it will be much of one unless all of your other credit is MUCH younger, or if this card had a comparatively high limit, which might ding you on your percentage of available credit used.

If you have another card with a comparable rate/rewards program, and pay off the balance every month, it shouldn't end up making that much of a difference.

[alabamagal]

If you don't want it, close it!!! Not a big deal.

People are way too worried about, "I've had this account for x years".

I would be pissed off about not being allowed to pay on my balance. I have a card that I pay online frequently. I believe I have made 2 payments on subsequent days (I really don't pay that much attention to it, just pay as needed).

[Savoir Faire-Demogague in NJ]

Just curious as to why you are not using your bank's online bill paying system, instead of going to each individual vendors web site?
Assuming your bank provides this service....

[schildi]

Two things:
(1) you should probably not close a credit card account with a balance in it.
(2) why do you think you have to pay interest because the "closing date" is tomorrow? You have to pay interest if you don't pay the entire balance by the due date, right?

[schildi]

Mar 21, 2011 14:28:22 GMT -5 Savoir Faire-Demogague in NJ said:

Just curious as to why you are not using your bank's online bill paying system, instead of going to each individual vendors web site?
Assuming your bank provides this service....

I prefer paying through the CC cards web page as well. The reason is that CC companies have been known to change the payment address, and if that happens, a payment through your bank may not get through, and before you know it, you are late. If I pay through the CC company's web site and keep a copy of the confirmation, they can't blame me or my bank.

[zibazinski]

If you make payments during the month, even though you may not pay the balance off entirely, you pay less in interest.

[schildi]

Mar 21, 2011 19:32:23 GMT -5 zibazinski said:

If you make payments during the month, even though you may not pay the balance off entirely, you pay less in interest.

The OP said he plans on paying $0 in CC interest, so I assumed this is not about paying "less", but rather a question of having to pay interest at all (or not). And I thought the cut off date for that was the due date, and not the statement date. No?

[azphx1972]

I'm sorry, but it sounds like Chase isn't that convenient of a bank for you anyway (with the closest branch being a 6 hour drive away), so in the big scheme of things you probably did the right thing.

[qofcc]

In the grand scheme of things, it's really not that big of a deal that you closed the account, but it's also not that big of a deal that they wouldn't accommodate you with an extra payment. So, you didn't plan properly and missed your new year's goal and you're out what? $5? It's not like closing your account is going to save you the $5 interest is it?

If it was me, I'd call them back and say I changed my mind and I want to keep the account open. I've have credit accounts with many banks and over the years, I think Chase has had some of the most attractive balance transfer offers and low minimum payments and their rewards programs are good if you use the card for purchases. Not only will you get a little ding for closing the account with the longest history, you'll get another little ding if you need to open another account to replace it along with the hassle of shopping around for and applying for a new card. If you were trading in the card for a better one as part of a strategy, that would be one thing, but it seems like you're going to inconvenience yourself more than you're going to punish them for loosing your business and it doesn't seem worth it.

[illinicheme]

Mar 21, 2011 19:35:15 GMT -5 schildi said:

Mar 21, 2011 19:32:23 GMT -5 zibazinski said:

If you make payments during the month, even though you may not pay the balance off entirely, you pay less in interest.

The OP said he plans on paying $0 in CC interest, so I assumed this is not about paying "less", but rather a question of having to pay interest at all (or not). And I thought the cut off date for that was the due date, and not the statement date. No?

I'm also confused by the explanation in this thread. It would seem that the OP still had plenty of time remaining to make a payment during the grace period? Unless the OP meant statement due date when they said "closing date"?

[Deleted]

I wouldn't be a fan of this policy either. (Shanendoah is right - they can have whatever policy they want, and maybe this is a common one - but that doesn't mean you have to do business with them)

I have closed a credit card account when I was displeased with a company's policies and service. If they really wanted to keep your business, they probably could have worked around the 3 day rule and found a way to help you eliminate your balance sooner. Sure, your credit score may take a tiny hit for a brief time, but it probably won't be much.

And sadly, closing the account is the only option you really have for letting a CC company know they are losing your business.

[Clever Username]

I think that it's awesome that you closed this credit card.
Think about it... you've never really been the proverbial "credit cards for the perks" type.
This little excercise actually shows that your the "credit cards to buy things I don't have the money for yet" type.
That's why this change is good, it limits your exposure to that risk.
I'm not saying that your in the progressively worse "credit cards so I can go into debt up to my eyeballs" type. But this move removes that option as a possibility.

[motherto2]

I've actually had that type of "buyer's remorse" kind of feeling where I was unhappy with a cc company and demanded they close the acct, which of course they were willing to do. I've also closed cc accounts when I've just called and calmly explained that I'm trying to mitigate identity fraud and closing accounts I no longer use. Funny, they were most accomodating when I was angry, but sure tried to keep my business any way possible when I was calm ;D. You do get over the "did I react too quickly" pretty easily. Next week you'll be onto something else, won't even give it another thought, and your credit score will be just fine. And it's one less card to worry about.

[nitramaj]

Thanks for your feed back everyone.

I knew I was selling my car. I just didn't realize that I could only make payments every three days. If I did, I would have saved my tax return and made one big payment.

My Chase card had a limit of $3900. I also have a Wells Fargo card that I got last year with a $0 balance and a $6000 limit.

I think that I'll just keep my one WF card. Is that enough available credit?

[TD2K]

I like having more than one card (say a security question causes them to freeze a card temporarily) but you can definitely get by with just one card.

[zuzu]

I have a Chase cc and get around the 3 day wait by paying bill pay from my checking account. You can make as many payments that way and as close together as you want.

[TD2K]

Good suggestion Zuzu.