Credit card companies threatening to cancel cards

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Originally Posted By: tonycarguy
Originally Posted By: Vilan
Originally Posted By: benjamming
Can you fly, stay in a hotel, or rent a car w/o a credit card?


I've done those first two things without one. Hotel did request a cash security deposit. Haven't tried renting a car.


I've read the rental agreements, and yes you can rent a car without a CC but you have to put down a cash deposit around $300-500, equivalent to the deposit hold they put on your CC.


I can't fly, get a hotel room, or rent a car w/o a credit card when I travel for work.
 
Originally Posted By: 65cuda
While I agree with those that don't use the credit card you also are hurting your credit score which also can affect your insurance rates and in some cases even job hunts. What I have done is get one no fee CC and buy stuff with it and then make sure that I pay it off during the month. I usually check my balance 3 times a month and pay whatever is there then, if any. Also I find that having a credit card while traveling works good and can be a backup in case of having a problem. At least if I break down I can pay the bills and then when I get back can worry about transferring the money. However too many people got hooked on multiple cards offering discounts for this and that and making min payments. I believe that both are a problem. It seems like people will spend a little more with the discount cards saying that they get cash back anyway. These companies aren't offering the cards without figuring out that it pays off in the long run. Min payments are always a no no. Ideally pay off at once or within 2 or 3 months. Otherwise don't buy, or at least not on credit.
I dont know how a credit score can affect insurance rates or job hunting. It must be something that is just in the US. Never heard of that here.
 
In the US it is common for insurers to run credit checks when writing policies. Somewhere along the way they decided credit scores have some relationship to risk on insurance policies and it is yet another factor in determining your rates.

Not saying it is right or wrong, but it is another reason to keep your credit report clean and to actually use some credit responsibly.
 
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Not only can your credit score affect you on some job searches, but also online accounts like Facebook. Some will even search those sites and if there are disturbing pictures or info on there they can rule you out, and I've read of a few cases where it has caused people to be fired. Considering that in many cases you do your job appplication online and never see a person it is another way for them to work around that first impression. A couple of people I know didn't even get a face meeting until they had at least one telephone interview.
 
credit card companies up to more tricks!

http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1330810&_blg=1,1330810

From the article:
* Citibank on Nov. 30 is raising the variable interest rate on some cards to 29.99% APR, Huffington Post blogger Eva Norlyk Smith said. "The card has a variable APR, so the interest rate, now and forever more, will be calculated by adding 26.74% to the U.S. prime rate," she said. If you pay on time, Citi will reduce the interest charged on your balance by 10%. (That's 10%, not 10 percentage points.) Whoop-de-doo.
* Citibank said it has "decided to close a limited number of oil partner co-branded MasterCard accounts." Those include Shell, Citgo, ExxonMobil and Phillips 66-Conoco cards, The Associated Press reports. To make matters worse, Citi sent out a letter two days before it closed the accounts, and some customers found out when their card was denied after they filled up the tank.
* Citi will assess an annual fee of $30 to $90 on some customers if they charge less than $2,400 a year.
 
In light of what Cutehumor posted, what are the usury laws in the US? The last I heard it was ~30% APR. It sounds like Citibank is aiming for the legal maximum. There was a time when 10% was considered usury.
 
Got the letter from Citi today, they allege I had "serious deliquencies" so apparently that's what they will use to justify canceling my card without warning.

I shredded it while I shredded the card.

I also activated the Chase Freedom cards that came today for oilBabe and me.

So much for serious delinquencies.

Similar credit lines. Not as much cash back bonus, but we can buy gas at ANY gas station and get 3% cash back.

Oh, and 0% APR until 10/2/10.

Not that we have any balance month to month. Just goes to show how much risk we are.

Goodbye Citi.
 
Originally Posted By: Cutehumor

* Citi will assess an annual fee of $30 to $90 on some customers if they charge less than $2,400 a year.


That alone is enough to cancel the credit card.
 
WoW that is horrible. Chase basically did the same thing to one of my credit cards. It's going to get closed as soon as our Condo situation is fixed.
 
Too funny, Citi just called, wanted to re-open my account, same terms. I said send the card, since we just shredded the old cards.

Am I a push over?
 
Originally Posted By: PandaBear
Originally Posted By: Cutehumor

* Citi will assess an annual fee of $30 to $90 on some customers if they charge less than $2,400 a year.



Just saw a caller on Suze Orman show say the same thing above. She said she had a 24k limit on citi card which she has had for 14 years. Owes $0. Suze Orman told her to cancel it because her other 3 Credit cards have $0 balance with the equal limit. But if you carry a balance month to month, before canceling, get a new credit card/line at another bank.
 
Originally Posted By: javacontour
Too funny, Citi just called, wanted to re-open my account, same terms. I said send the card, since we just shredded the old cards.

Am I a push over?


Yeah, get the card, and call in to cancel it so that it is closed on your term, rather than on their term.

Not sure if this will be better for your credit score.
 
Originally Posted By: MNgopher
In the US it is common for insurers to run credit checks when writing policies. Somewhere along the way they decided credit scores have some relationship to risk on insurance policies and it is yet another factor in determining your rates.

Not saying it is right or wrong, but it is another reason to keep your credit report clean and to actually use some credit responsibly.
I would really like to know how they can tie in a credit rating to insurance risk. Glad they dont do that here.
 
Originally Posted By: 65cuda
Not only can your credit score affect you on some job searches, but also online accounts like Facebook. Some will even search those sites and if there are disturbing pictures or info on there they can rule you out, and I've read of a few cases where it has caused people to be fired. Considering that in many cases you do your job appplication online and never see a person it is another way for them to work around that first impression. A couple of people I know didn't even get a face meeting until they had at least one telephone interview.
I dont understand what your credit rating has to do with job suitability. Glad that is also not done up here!
 
If you have bad credit, you're considered an insurance risk because people who are desperate for money are more likely to commit insurance fraud.

I actually saw this in action during some hurricanes when I lived along the Gulf Coast, when neighbors who were upside down on their car loans... well... let's just say they didn't exactly take extraordinary steps to get their cars to high ground.
 
If you have good credit, it only helps with your rates.

As far as with job searches, I can't comment too much as that is new to me, but do you want someone with bad credit as the new treasurer or other person with access to the money running your operation?
 
Originally Posted By: Primus
Citigroup's "Hail Mary Pass": How To Know Citigroup Is In Serious Trouble

All big banks are insolvent and stayed afloat thanks to Fed pumped money only, so they are like vessels trying to get rid off dangerous cargo before coming deadly hurricane. And seems everyone clearly understands that like previous time Fed will try to save primarly JP Morgan.

JP Morgan Earnings: Mirage ?



I see that the links you posted contain a good chunk of real estate quoting Karl Denninger, which is always an EXCELLENT read, and can be found here:
The Market Ticker
Jacking ALL of your CC customers up to a 30% interest rate is legal loan sharking. All they're missing is the goons to take out your kneecaps (which if it was legal you bet they would).
Talk about desperate measures. Going from a single digit interest rate to 30% is going to bankrupt quite a few people who can't transfer or pay up right now.

He makes an interesting theory about using the new 'interest owed' numbers and some accounting fudging to shore up whats left of the bottom line. There's no way this can work. Most of the people who are deep in CC debt are barely treading water anyway, this can only make defaults skyrocket almost overnight.
 
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