I Just Cancelled My Credit And Cut Up The Cards

And You Should Too

"Credit-card issuers have drawn fire for jacking up interest rates on cardholders who aren't behind on payments, but whose credit score has fallen for another reason. Now, some consumers complain, Bank of America is hiking rates based on no apparent deterioration in their credit scores at all.

The major credit-card lender in mid-January sent letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving an explanation for the increase, according to copies of five letters obtained by BusinessWeek. Fine print at the end of the letter—headed "Important Amendment to Your Credit Card Agreement"—advised calling an 800-number for the reason, but consumers who called say they were unable to get a clear answer."

Reading an online story story is never cause for undue concern or panic or drastic action. Anybody can write anything and could be mistaken, and information needs to be double checked for veracity. But this hit home with me for two reasons.

It already happened to me and my wife. Another card issuing bank, Chase, pulled this exact same thing to both my wife and I last year about this time. We had and have sterling records as far as credit is concerned - never late with payments and we stay well within the terms of our accounts. Yet last year we were mailed a notice, written in tiny print at the end of an innocuous letter from Chase, that told us our interest rates were going to be jacked up to 29.9 % if we wanted to continue the accounts. If that was unacceptable we had to notify them in writing by a certain date to close the accounts at the then current interest rate. I caught the message but my wife didn't, and my blood pressure rises when that stinking bill has to be paid every month.
With the stupid blizzard of paper mail we get each and every day I'm not going to allow Bank of America to pull that shit too.

Because they will, I'm absolutely convinced of that. After scrutinizing my credit reports from the Big Three reporting agencies, I saw BofA had made inquiries every single month last year.

We're about to see an economic catastrophe that will be breathtaking in it's ferocity and scope. The banks know this and are going to do everything possible to avoid collapse but few will. They know credit card holders are soon going to default on their accounts in record numbers and are taking steps to grab as much as they can beforehand. If you think you're somehow immune because of your credit history and rating you're mistaken. Banks aren't looking at what you did in the past, they're looking at what they can do to you now and in the future. Even if you think you can hold onto your line of credit now, tomorrow will be a different story.
And please note this - when the depression goes viral the banks will probably use the slightest excuse to liquidate your account. Meaning pay up now, or else face the boys with the baseball bats.