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At first she thought the problem was that pesky magnetic stripe. She knew she had plenty of credit available on her card, she always paid her bills on time, and she usually paid more than the minimum payment due.
When that card didn't work, Jennifer* simply used her other card. No worries. The second time it happened she went online to double check her card balance. The online statement showed when Jennifer had made her last payment,and it indicated her card was not only active but there was plenty of available credit.
So Jennifer tried using the card again. Declined.It wasn't until two days later - two days after Jennifer had found herself in embarrassing situations that she received the letter from CHASE saying they had canceled her credit.
Jennifer is one of thousands of credit card holders who probably have very similar stories. That's because CHASE canceled their credit,and then sent out the letters--potentially leaving people on vacation, out of the country,in an emergency room-- in a very awkward, not to mention humiliating position.
Only customers who had inactive accounts received letters in advance of the pending cancellation.Consumeraffairs.com has a post dedicated to all the Jennifers out there who are suddenly finding themselves without credit cards thanks to CHASE's purging. Many believe that the majority of cancelled customers are those that came under CHASE's auspicies after it bought Washington Mutual last year.
The Reasons they gave me were based on my credit report from Experian. These were the following reasons: Time since last past due is too short. Total available credit on bankcards is too low. Average length of time since bankcard(s) opening is too short.
They tried to explain what those meant but I was still confused. They were the lamest reasons.
Now that CHASE canceled her card, Jennifer has a total of $300 available credit on her other card. She is frantic that she will get a letter from that credit card provider saying her only remaining card has been canceled.
A life without a credit card is simply unfathomable for most Americans.It is also inconvenient. There are busiensses..particularly hotels and car rentals that make it very difficult to do business without a credit card.
In a week or so, Jennifer has to get in her car and take her son to college. She had planned on using her now canceled credit card for gas, hotel, and to buy all the stuff you have to buy a freshman in college. Jennifer hasn't gotten around to figuring out just how she is going to pay for the trip and those college expenses. She just received the credit card cancellation this week.
For the past 30 years many consumers didn't worry whether or not they could afford to take that trip or make those purchases because they could buy it on credit. The beneficiaries of this buy now, pay never mentality were businesses which were able to grow faster because people were spending money they really didn't have.
While most businesses benefited from our debt-culture mentality, few benefited as much as the credit card industry itself. And so ,for many,it feels like the credit card industry is punishing people for their own bad decisions. It's like going cold turkey when you are trying to quit cigarettes -- a shock to the system and months of being crabbier than hell.
With so many people losing their credit cards, it's going to be even more difficult for some businesses to survive. That's not to say that living on credit is smart, it's just that trying to stop living on credit when that is all you've done for years will take some adjusting to.
The lackof credit cards is one reason many businesses are promoting layaway,but in the travel industry it is very difficult the get a hotel room or rent a car unless you have a credit card.
While it is possible to pay for a hotel room using a bank debit card, they don't make it easy and they often put a hold on a significant amount of money -- a hold that can last several days after you check out.
Such holds can remain for several days to more than a week after you check out. They can get you in trouble when you try to make a purchase with your debit card and it's refused. Or, if you have overdraft protection, you're charged hefty overdraft fees for purchases you thought you had money in your account to cover.
One option is to pay for rooms and
