Chase Credit Cards

Chase Credit Card Business No Longer Dancing to the Credit Bureaus' Tune

If you are a Chase bank customer, you probably remember the initiation of its 2007 Chase Clear and Simple program and are probably currently benefiting from it. Just a few words to remind, the program's mission was to assist cardholders in better understanding and managing credit, as well as to mitigate some of its pricing practices.

Not only did the program offer smart online trainings on efficient credit use but it also worked on the plan of giving up the practice of hiking interest rates for customers whose credit-bureau scores dropped for some reason. The plan went into legal operating on March 1, 2008.

So, since March, Chase bank has gone independent from the national credit bureaus when it comes to increasing credit card rates for an individual customer. "Any time for any reason" rate increase practice is no longer going to draw credit consumers under a pile of unfair credit charges, and it is really great news.

But nothing happens without its reason and the reason for a bank to reduce its pricing is by no means its customers' easier life in the first place. Chase bank will require something back of you and this something is expected to take much of your effort and some of your money.

According to the new program, Chase may still raise credit card rates of its customers and the number of instances, in which the raise is effected, is specified.

• When a cardholder is late paying his/her monthly minimum on the credit card bill, Chase will raise the rates;
• When a cardholder goes over the credit limit available, the bank is to increase the rates;
• When a customer pays much less than the minimum required and shows lots of signs of financial instability, Chase is very likely to boost his/her rates again.

You see that in turn Chase requires you to be much more disciplined and responsible managing its credit cards. If you do happen to violate the terms of the credit card contract once, the penalty will be tough but, indisputably fair.

Having eliminated the "Any time for any reason" rate increase practice, Chase, on the other hand, has dumped the caps on default APRs and penalty fees. So, once you go astray, you may find yourself in much the same situation as you would if universal default affected you.

Despite it, Chase bank has shown itself as a really wise and customer-friendly financial services company. Its Clear and Simple program on smart credit use is almost certainly sure to guard you against stupid vexing mistakes, and just a little care from you as a feedback will ensure your faultless credit management and enviable creditworthiness.

Doug Nicholas

Doug Nicholas, a financial consultant by profession with a Masters degree in International Business from Brown University, is also an ardent writer. Though he has a full time job at one of the companies listed on Wall Street, he does manage to squeeze in time to follow his passion. He puts his ideas to words in his articles related to finance and business.