Pretty soon, Chase will no longer increase their cardholders' interest rates based on negative credit bureau information!
This is being done as part of their Clear & Simple program, which is designed to help Chase customers better understand and manage their credit card accounts, alongside their new and improved and clearer pricing practices.
This change will take effect March 1, 2008. <<=== <<===
So if you have a Chase credit card, and for some reason your credit score drops, Chase will NOT hike up your interest rate as a result!
Doing such a thing is an ugly and controversial practice often exercised by credit card companies known as "universal default."
A universal default clause in your credit card agreement allows the credit card company to punish you somehow - like by hiking up your interest rate, lowering your credit limit, or even closing your account - for something that may have happened with your credit that is negative, but that has nothing to do with your account with them!
Chase is the first, and so far the only, credit card company to announce doing such a thing. And they are definitely going against the grain of what is common practice in the credit card industry.
There's many reasons why a consumer may experience a negative change in their credit reports and credit scores. And a lot of them are unwarranted! At least with Chase, you won't have to worry any longer about being further punished with higher interest rates on your credit cards while trying to remedy a negative credit situation.
For right now, I'm kinda liking Chase!
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