hate mail
So when I got home tonight, a letter from one of the companies that has issued me one of my credit cards. Let me let you in on my credit situation: I have four credit cards.
The first is my first card from college, that I got because I wanted a free candy bar. I’ve had it for over ten years now, and the only reason I keep it is for the longevity of my credit history. (Because I hate the interest rate, and because they’re always sending me “convenience checks” that are inconveniently jamming up my PO Box. They never reduced my interest rate when I asked. They only increased my spending limit once. I pretty much hate them.) It has no balance and is in good standing. I use it once or twice a year to keep it active.
The second was offered to me when I opened a checking account while I was still in college. I’ve also had it for over ten years, and it has no balance. I only use this card for very large purchases. It has a rewards program, so I can get stuff by using it – last year, I used my rewards to help pay for my new TV. I usually don’t use the card, but if a high-dollar purchase comes up, I use the card to get the reward points and then I pay it right back. It has a relatively high balance, so it’s great for stuff like contractors or furniture. I had a line of credit with this company which helped me to consolidate my debt. I paid it off, and in the past year, they cancelled it. That kinda pissed me off, but I was kinda expecting it too. Either way, this is my highest balance card with my lowest interest rate, and I’m glad to have it. It has no balance and is in good standing.
The third card is my AMEX, which I’ve had for about ten years. It’s a classic green AMEX card with financial rewards. It’s my only card with an annual fee, but I love this card! When I was struggling through college and grad school, it helped me avoid using my other cards, avoid accruing a balance since it had to be paid off at the end of each month, and it gave me a little advance on my paychecks when I needed it. When I got this card, I was right at the point in my financial development when I learned how NOT to run up a bill. If I’m using a credit card nowadays, it’s usually this one. It’s in good standing, and I clear the revolving balance every month.
I just got the fourth card, a department store charge card, in the last year. Department store charge cards are pretty evil and not for the faint of heart. I have it because I like the store and I like the discounts I can get by using the card. I cleaned up on Christmas shopping because of this card, and as long as I don’t carry a balance, the ridiculously devious interest rate, typical for cards like these, won’t affect me. It doesn’t have a high balance, but I like the discounts. Again – no balance, good standing.
Well, the letter I received today was about the second card. It says in part,
Dear Sistah Ant:
I am writing to inform you that the Financial Rewards credit card program will be ending… [and] will be replaced with the new Cash Rewards Visa Signature credit card – one of our premier cash rewards programs… Your APR will not change… Your unredeemed rewards will be transferred to your new account… [and the card] comes with exceptional features and benefits. …You will receive credit for your continuous account relationship going back to the old card. Blah, blah, blah,
Sincerely,
Fake Signature
Name that means nothing to me
Stupid Bank
I know this doesn’t sound like a bummer, but check out what’s in the fine print on the back of the letter – “As a result of this upgrade, your account will have a revolving line, rather than a preset spending limit. This does not mean that all transactions will be approved. We will consider transactions for approval on an individual basis, including transactions in excess of the revolving line. If we have previously permitted transactions in excess of your revolving line, it does not mean that we will permit another transaction in excess of your revolving line. Your revolving line, which may also be referred to as a credit limit, will be disclosed to you when you receive your card and, generally, on each monthly statement. We may change your revolving line from time to time.” Some upgrade.
It’s hate mail, I tell you! My predictably high credit limit – *poof*. The predictability of knowing what I can spend – *poof*. Going up to the counter knowing that my card will be approved – *poof*. What I like about this card, opposed to my AMEX, is that I KNOW how much I’m approved for. I don’t have to call before I spend to see whether or not I’m going to be embarrassed at the register. The high balance on this card makes me look as awesome as I am on my credit reports. Now the only cards I have that have regular credit limits are the first card and the department store card, and their credit limits combined don’t add up to my current Visa limit. Do you know what this could do to my credit score, less than a year after my line of credit has been cancelled (by this same stupid bank)? My ratio of debt to available credit will still be “zero” to “combined credit limit,” but that combined credit limit is shrinking, and I didn’t do anything to deserve it.
I wouldn’t care if I wasn’t trying to buy a bigger house in the next several years. But I am. It’s hate mail, I tell you. They hate me because they don’t get interest from me anymore. They can’t hold a big balance over my head anymore, ’cause I paid it off. I probably take more money from them with my rewards that I earn them in merchant fees. So they send me this stupid letter, which is all happy and stuff (“upgrade” my foot!) when they’re really sticking it to me. I hate them now. That is all.
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4 Responses to “hate mail”
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There was a study I heard about that say your first credit card is the hardest to get rid of.
I would have gotten rid of mine if I hadn’t read about how keeping it open would help my credit score…
Hey Sistah Ant! I’ve been wondering what happened to you. I’m guessing “life” happened to you. I’ll have to check back more often. Glad to see all is going well w/you.
Maybe you are overdramatising this, its no great loss, you didnt need it.
You can cash flow large expenditures cant you?
why do you need a bigger house, just curious:)
I didn’t need it, no, but I WANTED it.
I can probably still use the card for large expenditures, but now it’s not a “definitely,” it’s a “probably.” I think that besides my credit score being dinged, that’s what annoys me about it. Now, about a house – I don’t need a bigger house, per se. I will, however, need a house in a better school district. I would also like to have more room for guests, entertaining, and office space, and I don’t have much of that now. It’s going to take more than a couple years to save the down payment, but until I make that move, I’m going to stay vigilant about my credit.
Sister Ant–you back !
“does not mean that all transactions will be approved.” WTF? dayum