Chase Eliminating Universal Credit Default Altogether
Published December 10th, 2007 in Credit News.
As part of Chase’s new “Clear and Simple” initiative, effective March 1st, 2008, Chase will stop the controversial practice of universal credit default, which allows credit card issuers to raise your APR if you fail to pay any other creditor on time, or if your credit scores dip.
Technically, Chase eliminated the use of universal credit default in 2005, but continued to monitor the credit reports of card holders in an effort to find ways to raise interest rates.
Earlier this year, Citi also announced that it would no longer enforce the universal credit default rule.
Chase will also allow card holders to pick a credit card due date that best matches their unique financial schedule, and will offer free account alerts to notify customers that their payment date is near.
You can also cap or lower your credit limit, and avoid over-the-limit charges by preventing overages from being approved on your credit card.
Strange that they allowed us to make charges that went over our credit limit to begin with, right?
Interestingly, the announced changes come just as credit card issuers are facing pressure from Congress to stop their seemingly predatory practices.
If you want to take advantage of these changes, it’s probably best to call Chase directly and discuss it with a representative, or configure the changes online if you’re savvy.
Some of these changes won’t be automatic, so make sure you opt-in before assuming you’re safe.
If your credit card APR is bumped up, it would generally be recommended to move your debt to a low or 0% APR credit card.
