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traveler505

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  1. Not a thread-jack at all. A sudden pay-off (what I did) is different from a gradual pay-down. Banks assume that a sudden pay-off means one of two things: (1) The borrower has taken out a debt consolidation loan, and now has the potential to run up his cards again and end up twice as far in debt. (2) The borrower has suddenly come into money (sale of home, inheritance, etc.), rather than getting an increase in regular income. For the banks, Number 1 would mean the borrower is a greater potential risk of ending up over his head in debt than he was before the pay-off. Number 2 is a one-time event, which does not change the borrower's month-to-month finances and ability to pay, and the borrower is likely to return to high utilization over time. If I had cared more about keeping all of my credit lines intact, I would have paid them down gradually. But the interest incurred while doing that would have been expensive, and I thought it would be an interesting experiment to see how the different issuers behaved. (As I noted in my original post, I was surprised that USAA was the one to slash my credit line, rather than some of the subprime guys.)
  2. They overnighted my savings account balance ($100) back to me by USPS Priority Mail Express. Guess they REALLY wanted to get rid of me.
  3. I agree that it's a bad idea. It's just the first time that I've seen a merchant services company promoting it, and I wondered if it was becoming a trend.
  4. Interesting ... I just got a robocall at work from a merchant services company. The recorded pitch was, basically: Use us, and your business will never have to pay credit card processing fees again. The fees will be paid by your customers, and will appear as a separate line item on their receipts. All your business pays is the monthly rental for the machine. Has anyone run into businesses that are doing this? Is it permissible under the current Visa/MC rules?
  5. Follow-up: I contacted the executive office, and they stood by the original decision. So I closed both my AmEx and my savings account at USAA.
  6. Fair enough, but as long as USAA is providing it, I'm going to wave it in their face if it benefits me. :-)
  7. After maintaining high utilization (but otherwise clean reports) on my credit cards for a few years, I was able to free up funds and pay everything down to zero. I anticipated that some issuers would respond to sudden payoffs by closing cards or reducing credit lines, and was willing to let the scum float to the top and get rid of them. What I didn't expect was that the scum would be USAA,. which reduced my credit limit by more than 90%, down to toy card status. (I'm not military, so I am a second-class citizen there and not eligible for insurance products. I got the card 10 years ago during one of the periods when anyone could access their financial services.) The AA notice said my credit score (pulled before I paid everything off) was 664; my current score (through USAA's website) is 806. I'm inclined to send a "restore my credit line or close my account" letter to USAA's president, whose signature appeared on the AA notice. What would you suggest?
  8. I have not registered for this CU myself yet, but this brochure outlines eligibility details. It appears the minimum donation is $1, but I may be reading this incorrectly. As I read it, the $1 is for membership in the credit union. Membership in the non-profit (which places you in the CU's field of membership) is $50 and up. http://uschs.org/support/individual-membership/
  9. I successfully combined my other ex-Orchard card into the older Capital One card (Card #1).
  10. Thanks for the suggestions. I will call Capital One next week to inquire about product changes. I have a dozen cards opened in 2006-2008 while I was rebuilding credit, with just a couple older ones and a couple more recent ones. So I don't think losing one 10-year-old card will have a noticeable impact. I do like the idea of applying for the Venture card.
  11. I have two Capital One credit cards (left over from my subprime days) which I'd like to combine. I'm trying to decide which one to keep. Card #1: Platinum, no rewards, 18.4%, $29 annual fee, opened 20 years ago. It's my second oldest card; I have a department store care that's been open longer. Card #2. Quicksilver One (originally Orchard), crappy rewards, 15.40%, $39 annual fee, opened 10 years ago. Keeping Card #1 would be better for account age and slightly better for annual fee. Keeping Card #2 would be better for rewards, I'm open to other suggestions, since I haven't tried calling issuers and asking for better terms or conversion to better card programs. Both of these cards were opened in my subprime days, and my understanding has been that, no matter how much a cardholder's credit improves, Cap One keeps these cards (and perhaps the cardholder himself) in permanent subprime status. If someone has newer/better info, I'd be interested. Thanks.
  12. (1) Making payments doesn't restart the clock for reporting, but it may extend the statute of limitations for lawsuits. (2) I assume that NFCU applied any funds you had on deposit toward your debt. Since this includes the amount that is required to stay on deposit to maintain your membership, you would have to re-qualify as a member. If you are no longer a contractor at that time, that may be a problem.
  13. Closure of a bank doesn't mean it no longer exists, and is not a legally-recognized basis to stop making payments. In Advanta's case, it was taken over by a receiver (the FDIC), which paid depositors (up to the insurance limits) and continues to collect outstanding debts (including credit cards). Generally speaking, in a receivership situation, the corporate entity (Advanta) still exists, but the receiver manages it. Thus the debt is still owed to the corporate entity. From the Advanta web site: On March 19, 2010, Advanta Bank Corp., Draper, UT was closed by the Utah Department of Financial Institutions. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed. An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amounts. Credit Card Operations will continue business as usual. All Credit Card customers should continue to make their payments as they have in the past. For additional information, please contact Advanta Bank Corp. toll free at 1-800-705-7255 The FDIC has assembled useful information regarding your relationship with Advanta Bank Corp. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.
  14. "Once a member always a member" doesn't apply when you give up your membership. When your membership deposit (the $5 or so that you are required to keep in savings at all time) is withdrawn (or used to pay off other delinquent debts/overdrafts), you give up your membership. What "once a member always a member" means is that if you meet the membership qualifications when you join, you won't lose your membership just because you no longer meet those qualifications. (For example, if you are eligible to join NFCU because you are active duty, you don't lose your membership when you return to civilian status.) If you give up your membership, you'll have to meet the membership qualifications to rejoin.
  15. Credit One and Fingerhut, like First Premier, should be closed and run through a shredder. Their cards should be treated the same way.

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