I HATE Credit Cards
August 11, 2009 18 Comments
So here’s the story.
Because of how the paycheck fell this month, I didn’t get my money until the 3rd of the month. It turns out that my credit card bill was due on the 3rd. It was payed automatically on the 4th. However, the 4th is still late and late it was. Even though it would have been impossible for me to pay it on time because of how the weekend fell this month.
I called up Bank of Americrap and explained the situation and they not-so-politely informed me that they would NOT take back the late charge. Also, they informed me that my minimum balance would be almost $600/month now (previously $300) and that my interest rate would go up to 27% (rather than 10%) ALL because the 1st was a Saturday and I payed my money automatically the day after I got paid instead of paying my payment before I had money. Explaining this – to two different people – made no difference.
They presented me with two options:
1) Pay the 27% interest for 6 months, at which time the account will be reviewed and they’ll lower me to 25%.
2) Close the account and put it into “financial hardship” – and pay 5% interest with a fixed payment over 5 years.
The obvious choice is to close the account, but I’ve very worried about the effect that this will have on my credit score. Losing that much credit to my name could have a pretty negative blow that could effect me for years to come but I can’t even afford the minimum payments that their new percentage rate comes attached with. And because I was over my limit in October of last year (remember my bad, bad spending habits before? And why this blog was started in the first place?) – they’re not changing their minds.
So I’m stuck. I just thought I was doing so good and that all this financial bullshit was going in the right direction. The idea of not having a credit card to fall back on scares the crap out of me – not that this card had enough available credit to even make a fuck of difference.
The other option of course is to do some fancy balance transfer business to get myself into another card or get myself a personal loan, but the idea of opening up more credit to fix this disaster sounds like an even worse option in the long run for me.
As another side point, I currently have enough miles on this card for a round trip ticket to lots of places, and was hoping to save these miles up for a vacation with my sister. If I put the card in “financial hardship” then I forfeit those miles. Not that that should be a defining thing, but it does weigh on my decision.
So I have to ask you guys: What would you do?
I hate the fact that I’m even in this situation because of how stupid their rules are and the fact that I had the payment automatically set up. It wasn’t like I was intentionally paying late or ignoring my bill – I paid it the same way I have done every month for nearly 4 years – and just THIS time there is an issue because of how the paycheck fell. *sigh*
I would really like some insight and advice here. What should I do?!