Chase Ups Minimum Payment and Adds a Fee

You would think in this economy, credit card companies would make it easier to pay on your credit card rather than making it an additional financial stressor. Chase has recently announced that their credit card holders will be required to pay 5% of their balance as opposed to the 2% card holders have been paying for a minimum payment. Chase has also added a fee to individuals who have a low interest rate of $10 a month.

The reasoning behind the change is to help card holders who have had been paying but not making an progress in lowering their balance. How nice of Chase to think of the debt of their consumers, however, it’s not all selflessness that drives this new minimum payment requirement. If it were, Chase wouldn’t add a fee for individuals who have been paying on their cards with no problem. With this increase, these same people who had no problem paying on their cards before, may not be able to make it. What this means, is Chase may see an influx of people missing payments, which means late fees and more money for them.

What can you do if you are a Chase credit card customer? You can transfer your balance to a non-Chase credit card company. You may have to pay a fee but you will make up that fee if you are able to get a lower interest rate and not have to pay the $10 a month.

If you are unable to transfer your balance due to poor credit, call your Chase credit card company and explain your situation. Chances are, they are still going to work with people who are having financial problems paying on their credit cards. You may be able to come up with a minimum payment per month that works for you and is not the 5% they are requiring. However, this is on a case-by-case basis and most likely will depend on how well you’ve been able to keep up on your payments. In any case, it doesn’t hurt to call and ask!

(Photo Credit : http://www.flickr.com/photos/woodpool/2476522151/)

July 1st, 2009 by Marcelina Hardy | Posted in Credit Cards | (0)