Chase Payment Protector?

[i8thegreenbean]

The good, bad, and the ugly. (I'm assuming all bad and ugly)

 

Chase has ratejacked us to 18.xx%.

 

Spoke to Customer Service, according to *this* CSR, my only 2 options are:

 

Chase Payment Protector (CSR had a very difficult time explaining it, claimed it wouldn't hurt our credit, but would have an entry fee of .89Cents per $100 balance, one time fee)

 

OR

 

Hardship something or other---involved closing the account (fine), claimed it would hurt our credit, and they would then settle for less than owed, lower interest rate, etc. (CSR explained this option made it look on our accounts that we could NOT pay our bills)

 

 

Claims NO other option to lower our interest rate.

 

We had room on BOA for a 0% balance transfer....errr...maybe it was 1.9%, can't remember---called to schedule that, and Whoops! Instead, BOA lowered our limit, thus completely removing our BT option, not to mention hurting our utilization.

 

So.....I'm about to Google, does anyone have any experience with the Chase Payment Protector?

[i8thegreenbean]

GAH. Quick Google confirms it's BS.

 

Any other options on lowering our interest?

[breeze]

If they were trying to sell it because you lost your job or got sick and can't work, they are dead wrong - it isn't going to cover something that has already happened.

 

It is worth it for some people, but there are a lot of caveats and exclusions, so you have to know what you're doing before you buy it. Also pay to read how long it will be in effect - like 6 months? probably not worth it. Is it actually making payments, or does it suspend them? Suspended - not worth it.

[i8thegreenbean]

AWESOME!

 

HUGE success.

 

I called 877-890-2941 (ProActive Solutions)

 

Requested the 5 year, lower interest pay-off plan, sometimes known as "hardship"

 

After explaining that although we ARE making minimum payments NOW, we had no idea how long we could keep our heads above water, especially with the length of time at paying at the current terms.

 

Answered detailed financial questions (salary, mortgage, auto and credit card payments)---we were approved.

 

Account is officially closed, supposedly by consumer.

 

5 year repayment plan, at 6% interest. MUCH better than the 18% interest.

 

I can pay above the minimum at any point, to decrease the 5 year time-frame. Minimum payments went from $266 to $199.

 

ONLY 'catch', I had to agree to an auto deduction for the first 12 payments, to be deducted on the 20th of every month. FINE with me.

 

Great news, I'll be done with Chase FOREVER in 5 years (or less), and am paying a MUCH LOWER interest rate.

 

Call the number, I found it after Googling, original CSR from the # on the back of card DID NOT offer this program.

[i8thegreenbean]

Now I'm wondering if BOA offers anything similar....

[stoney]

AWESOME!

 

HUGE success.

 

I called 877-890-2941 (ProActive Solutions)

 

Requested the 5 year, lower interest pay-off plan, sometimes known as "hardship"

 

After explaining that although we ARE making minimum payments NOW, we had no idea how long we could keep our heads above water, especially with the length of time at paying at the current terms.

 

Answered detailed financial questions (salary, mortgage, auto and credit card payments)---we were approved.

 

Account is officially closed, supposedly by consumer.

 

5 year repayment plan, at 6% interest. MUCH better than the 18% interest.

 

I can pay above the minimum at any point, to decrease the 5 year time-frame. Minimum payments went from $266 to $199.

 

ONLY 'catch', I had to agree to an auto deduction for the first 12 payments, to be deducted on the 20th of every month. FINE with me.

 

Great news, I'll be done with Chase FOREVER in 5 years (or less), and am paying a MUCH LOWER interest rate.

 

Call the number, I found it after Googling, original CSR from the # on the back of card DID NOT offer this program.

Looks like this would be ideal for my DW. WAMU gave her a parting gift of an 32% APR. With adjustments to APRs on other cards because of economic conditions it is getting tough to keep payments current. Does anyone know how this would affect your credit scores?

[i8thegreenbean]

Stoney--

 

I haven't checked scores yet, but I imagine utilization would go through the roof---owing a balance on a CLOSED account, kwim? With the higher utilization, comes lower scores, obviously.

 

I don't forsee any other reason for a score to drop, aside from Utilization.

[sfbehr]

Stoney--

 

I haven't checked scores yet, but I imagine utilization would go through the roof---owing a balance on a CLOSED account, kwim? With the higher utilization, comes lower scores, obviously.

 

I don't forsee any other reason for a score to drop, aside from Utilization.

 

That's pretty much on the mark.

 

But if it's the best thing to do financially, I'd take the score hit.

[radi8]

Stoney--

 

I haven't checked scores yet, but I imagine utilization would go through the roof---owing a balance on a CLOSED account, kwim? With the higher utilization, comes lower scores, obviously.

 

I don't forsee any other reason for a score to drop, aside from Utilization.

 

Post back with the results. I read in some places that FICO ignores balances on closed accounts when calculating utilization, but have no concrete proof of it. Will be helpful to see what happens IRL.

[phdeez]

Wanted to say thanks for the Chase telephone #. Got my interest rate down to 6% (from 24.24%!!) and min payment down from $140 -> $87. Will also pay off my ~4.5K in 5 years.