Sock it to ya

Feeling the financial squeeze from competition and burgeoning interest rates, credit card companies are now looking for ways to squeeze you even more.

Christy and I received this attention first-hand from one of our credit card companies. Bank One was recently purchased by Chase Manhattan Bank, which sports far more draconian policies on accounts, including a penalty rate which scales up depending on your balance. If you have more than $1200 on your credit card balance with Chase, you’re facing a minimum $35.00 late fee with any late payment (plus additional penalties per $1000 in credit), and an immediate rate hike to twenty-five percent interest.

We recently went on vacation, and were late on a payment. We saw the new 25% rate reflected on our next statement from our “new” credit-card company.

Christy called to complain, informing them that if they didn’t lower theinterest rate, we’d switch banks.

They refused to budge. Looking at our high balance, and our minimum-payment activity on that account (we have other bills we’ve been paying down on), they wouldn’t deal. At all.

We opened a new credit line with a new bank from one of the many offers we receive every week, and will be closing our Chase account on Monday.

Caveat Emptor applies to your credit, as with anything else. I’d rather deal with a slightly-diminished credit score for a few months due to opening a new charge account than deal with the pain of a 25% interest rate on our credit balance.

Buyer, beware. Watch your own bills to make sure they don’t sock it to you!