Chase Is Trying to Rip Me Off

I received a letter this weekend from Chase, the bank where my primary credit card is housed.  The letter seemed all nice and fluffy.  I am being “upgraded” to a new premier rewards program.

As I read on, the one page letter outlined that my account and card number would stay the same and my rewards would increase to 3% for gas and grocery purchases.  That seemed fine.  I like better rewards.

I kept reading and everything seemed great… And then I made it down to the end where they drop in a line saying that I will have to pay a $30 annual fee.  Not going to happen.

As I have said in the past, your credit card should pay you.  I will not pay an annual fee for my card.  I plan to call Chase in the next week or so to discuss my new “premier” status.  There is no annual fee for the first year, but I do not plan to stick around that long if they require my credit card terms change.  I am happy to stay on the way I have my account today.  The change in terms goes into effect on August 31st.

The potential outcomes of my call:

1. Chase lets me keep my current terms and I keep using my card regularly.

2. They upgrade me to the new program but waive the fee permanently.

3. I opt out of the Chase rewards program and leave the account open, but use another card with better rewards.

4. I close the account if they insist I pay a $30 annual fee.

Each of those options has ups and downs.  I listed them in order of preference.  As you all know, closing a credit account is not good for your credit score, so I want to avoid that if I can.  I would prefer to just leave things the way they are if I can.

When I call, I will keep Ramit Sethi’s I Will Teach You To Be Richin mind for customer service representative negotiations.  You can almost always save money if you ask.  From there perspective, I am a good customer.  While I do not pay interest, they make a lot from merchant interchange fees on my card usage.  They would loose all of that if they lose me as a customer.  Keeping my account as it is today is win-win for both me and the bank.  I hope all it takes is asking.

I will update you all sometime soon when I call Chase.  The lesson to you is: Read your credit card mail.  You never know what terms the bank is trying to slip into a nice, glossy letter.