Tuesday, August 30, 2011

Tuesday, Hit by the credit report!

     I am about as mad at US Bank as Rhitter is at Capitol one.  We just refinanced our mortgage and heloc together two weeks ago.  Both were with US Bank.  I have not been fond of this bank since they issued me a business CC 5  years ago.  It was issued automatically upon opening a business account.  I did not use it for two years.  When we moved the studio to a new location I used the card to the tune of $12,000.00 for moving and remodeling expenses as it had a very good interest rate.  Two months after the move they upped the rate to 14.99 percent.  I asked why, we had never been late, we were making way. way over the minimum payment.... answer because they could.  So I vowed to leave them.  I said you have me by the short hairs now but you will not always and I will leave.  I started the process.
     We asked to refinance both the loans together they turned us down.  So we went to a Credit union and it was approved.  A week after approval I was socked with a $10 overdraft fee on the account that my house payment pulls from.  I called to inquire, it was a retro active fee for pulling the heloc loan that was due  days before we closed the new mortgage.  I was told by the CU not to mess with any figures as they would have to print all new paper work.  Now this loan can pull automatically when I am out of town and I go in  and pay it.  Yes there is 16 cents or so of interest but it can and has been done.  Because they knew we were leaving them they assessed a fee retroactively!  I argued they were rude.
     Yesterday I received a letter from them they are raising my business credit line from 5.99 to 7.49.  As my credit has been damaged by leaving them.  How has it been damaged I ask?

     Well a lesson learned: When a home loan is paid off along with a heloc you lose that history, you start over, you close accounts.  Ding!
    When you quickly pay off a car and put $2500.00 down on a new car in June, you lose the history, your down does not show and you have a two month history with a large balance.  Ding!
    When you put $250.00 down on a consigned loan for daughter in July they don't see the huge down only the short history. Ding!
     When you only have three consumer debts and two of them are almost at max because you have been trying to pay the high interest card first, it looks like you have maxed your credit.  Ding!
     We had over $65,000 available credit in the heloc that we had never used this looked good.  We lost that. Ding!

  So case in point we look bad and we are going to pay for this!
  Basically according to the Credit world our stellar credit score is in the toilet.  We look like we are at the max on all our lending and we have no history on large loans.  We have never been late, we have always over and above minimum payments.  We put large amounts of cash down on cars. But US Bank is going to get the last $40.00 of interest from us if it kills them.
     When the studio opens officially I will be moving my banking to the CU.
   But now I am resolved to get the last two bills I owe to this bank PAID! 

I want them gone by Christmas.   Are you ready to join me, I am so upset and frustrated.  Here I thought I was doing something smart and good for my family and it turns around and kicks us.
     I am going back to the Mundis principle, do I have a place to live? do I have food to eat? do I have clothes to wear? Can I pay all my bills even if it is the minimum?  Then who cares.  Do not debt, snow ball and keep going, eventually I will pull out.

 Out My Window:  Put away all the jam yesterday and today I will cut down the flowers to the nub so they can come back when it cools down.

     I was able to sew $140.00 worth of last minute pants and a wedding dress bustle.  So I am that much better off.  I think I should stop opening the mail.  I will not let US BANK or the SYSTEM take me down.

     Have a great and productive day!



  1. Oh wow.... that is so wrong! I really hate the banks!

  2. I am so sorry. I moved everything I could to the cu over the last year. I am slowly moving more over as I pay the debt down there. It sucks because your damned if you do damned if you dont.


  3. That sucks!! But, if you aren't taking out any more credit right now, hopefully the lower score won't hurt you too badly while you knock out the last of that debt. Hang in there, and keep up the good work you've been doing! I am always so impressed by your work ethic, with the hours of sewing and then cleaning the office buildings at night.

  4. It's crazy how a series of small events can add up like this and make you seem like a much worse credit risk than you were even though your real situation hasn't changed all that much.

    On the bright side, if you're not getting any more credit for the moment then this will improve and clear up pretty soon. And you're going to be free of that nasty bank!

  5. I can't seem to comment on your newest post (about Prevailing) so I'll do it here.

    That is awesome. A nearly 19% drop in interest will be huge. Even if you take a year to pay off the new loan, you'll save a ton of money. I do think you should take no longer than 10-14 months to pay it off though. You were going to have the card paid off sooner. No point in keeping this debt around for ages.

    I do see their point about the 8 months thing. And many car loans have "extreme prepayment" penalties. You can pay extra, you can pay them off sooner than the full term, but if you pay them off in 3 months they hit you with a fee. The term is super-short (like 1-3 months is what I have seen) and meant to make sure they recoup the cost of creating the loan.

    Anyway, congrats!

  6. Thank God Kev I thought it was just me that coulndnt post. I LOVE MY CREDIT UNION> They have really helped us this year and will have my loyalty forever

    have a safe trip