PSA-Check Your Credit Card Junk Mail

[woodandsteel]

Until a couple of years ago, I had up to five different credit cards. Then I was exposed to Dave Ramsey, read his book and did a debt snowball on my credit card debt. It was a relief to finally be done with credit cards. I was going to cancel my cards, but followed bad advice from others who said not to. They claimed that it would ruin my credit rating. I know that Dave Ramsey has his own opinion on "credit Ratings". But, we were going to refinance our house and I was afraid of messing that up.

So, the credit cards were locked in the safe collecting dust. Whenever I got junk mail from the card companies, I would just throw them into the to be shred pile. My wife, who is more careful than me when it comes to shredding stuff, opened up two letters from Citi bank. The letters said that effective April 1st, Citi Bank was going to start charging an annual $60 fee, per card, to card holders who didn't charge an average of $200.00 a month on each card. So, I immediatley called Citi Bank and had both accounts cancelled.

I realize that Citi bank is a private company and they are able to charge what ever they want. I am a little upset that they could just change the rules when they want. But, that's life.

I'm only posting this, because I am sure that there are others out there like me who just shred the junk mail from their credit card companies. Please read your credit card junk mail beofre shredding it.

[Belmont31R]

Credit ratings are a joke. You get punished for not taking on debt (credit cards) and not playing the debt game.



A smart person who pays with cash and lives within their means will have a lower rating than someone who has thousands of CC debt. You also get punished on your score for canceling a card...yet the CC companies can change the agreement at will. If they jack up your interest rate to 30%, and want annual fees you either eat the extra cost or take a hit on your rating for canceling the card.

[JonnyVain]

Thanks for the heads up. I'm in the process of getting rid of my credit also.

[woodandsteel]

Credit ratings are a joke. You get punished for not taking on debt (credit cards) and not playing the debt game.



A smart person who pays with cash and lives within their means will have a lower rating than someone who has thousands of CC debt. You also get punished on your score for canceling a card...yet the CC companies can change the agreement at will. If they jack up your interest rate to 30%, and want annual fees you either eat the extra cost or take a hit on your rating for canceling the card.

You are correct! When I first got out of college and started my carreer, I was debt free. I followed my grandfather's advice of not buying anything unless I had cash for it.

Then I got some bad advice. I was told to get a credit card to make it easier to get a home loan. I bought into the whole credit rating BS. Next thing I knew, I was transferring debt from card to card, when the 0% transfer fees came out. That coud've been a major trap if I ever missed a pay date.

Now, I am devoted to paying cash for everything. Even my wife is on the "Cash is King!" bandwagon. She uses cash to buy stuff instead of a check. She finds that when it is cash coming out of her purse, she tends to spend less.

I will never get into credit card debt again. Especially with a bank that took bail out money.

[white spaniard]

Thanks for info my wife and I closed 3 CC this year. One of our cards went form 3.5 to 29.99 intrest rate they couldn't tell us why intrest rate went up.

[Belmont31R]

Thanks for info my wife and I closed 3 CC this year. One of our cards went form 3.5 to 29.99 intrest rate they couldn't tell us why intrest rate went up.





Most of this is because the credit card law Obama signed.



Banks are going to get money one way or another. Cut off one route for them to do so, and they increase the flow in another. In this case its annual fees and interest rates. The only way to not give them money is to not use CC's, and find a bank who doesn't play games with your checking account. I use USAA, and its a great bank to do with business with.

[High Desert]

They are also changing the way they handle overdrafts. We recieved a letter saying we no longer had overdraft protection and needed to sign up. I called the number and the only option was "press the 1 key to activate your overdraft protection".

I did nothing. Again the recording asked me to press the 1 key. After 3 attempts it then said. " to speak to a representitive, push *0". I did and the person on the other end said. "I can go ahead and activate your overdraft protection."

"No, I want you to tell me what happened to my automatic protection linked to my saving account."

"Oh, that went away when we bought your bank last year."

"Can I have it back"

"Yes, but".... she goes into a 1 minute sales pitch

"Miss, why would I want this service, when I maintain a savings balance and dont overdraw my account anyway?"

Long pause.. Well, I guess you would not need it.

"Great, please relink my accounts"

"yes sir"

Bottom line is with the new plan they were pitching, they charged 35 dollars everytime you overdrafted. Now granted, we dont over draft, but things are much tighter now day. I would not want to make an accounting error and pay 35 dollars for it when I have the funds in savings.


I hate big eastern banks... I need to go local again.

HD

[LMarshall73]

I married in to bad credit (had none before getting married due to living debt free). After getting divorced, it stuck with me. My score started going up, until I paid off 2 cars and my motorcycle. As soon as I ended up debt free, boom, credit score dropped. On top of that, I haven't worked for the employer that Experian and Equifax have listed as current since 2003 (I only purchased one of the 3 vehicles while working there, the other 2 were after). I agree with Ramsey's stance on credit ratings, but tried to play the game anyway. Ooops.

If only FreeCreditReport.com had had the commercial about the "happy bachelor with a dog and a yard" in 2000... :D

[Belmont31R]

I married in to bad credit (had none before getting married due to living debt free). After getting divorced, it stuck with me. My score started going up, until I paid off 2 cars and my motorcycle. As soon as I ended up debt free, boom, credit score dropped. On top of that, I haven't worked for the employer that Experian and Equifax have listed as current since 2003 (I only purchased one of the 3 vehicles while working there, the other 2 were after). I agree with Ramsey's stance on credit ratings, but tried to play the game anyway. Ooops.

If only FreeCreditReport.com had had the commercial about the "happy bachelor with a dog and a yard" in 2000... :D





The entire credit reporting crap is designed to keep people in debt so they have some arbitrary rating. Those without debt get punished while those with debt get rewarded. Its a suckers game....

[Gramps]

We have one credit card, and it is free everything, BUT it is threw our "Credit Union", and they don't charge. They are the only ones in town that are doing successful here. We only use it when it is a dire need, AND we know that we will be able to pay off whatever was charged at the end of the month. So wee don't have any thing on it, but it shows as being used now and then. NO PROBLEMS, and a good wife with money handling. My mom is with a "BANK" and I have seen her lied to repeatedly, but she won't change, yet.

[bkb0000]

you have to remember that a credit rating does NOT reflect your trustworthiness and responsibility- your score is based on how much risk you are to a given creditor. that "risk" includes cashing out early, being a cash-payer, an interest-rate shopper, etc... you don't have to have made "mistakes" or be irresponsible to be high-risk. all you have to be is not profitable for them, either way.

[woodandsteel]

We have one credit card, and it is free everything, BUT it is threw our "Credit Union", and they don't charge. They are the only ones in town that are doing successful here. We only use it when it is a dire need, AND we know that we will be able to pay off whatever was charged at the end of the month. So wee don't have any thing on it, but it shows as being used now and then. NO PROBLEMS, and a good wife with money handling. My mom is with a "BANK" and I have seen her lied to repeatedly, but she won't change, yet.

I was just made aware of the fact that Credit Unions were supposed to be set up as non-profit entities. As such, they don't usually charge fees for ATM's like banks do. Not sure how acurate that information is. But, I know in my area any credit union member can use a competing credit union's ATM without charge.