Questions about Sears Master Card

dossin1 · #1 (**permalink**) 10-18-2006, 03:45 PM

Hello, I am new here, just found this forum yesterday. Has anyone had any luck getting an interest rate reduction from Sears MasterCard (currently 19+%). I read the CapOne posts and see that they won't budge. I've tried 3 times with Sears and I always get the "we don't negotiate interest rates" song. Even asked would they lower the rate if I put a request in writing. Asked to speak to a supervisor, still no deal. Should I surrender?

Also, this card is my oldest, since 1986. If I pay it off and close it, will my credit rating take a big hit? They have this thing where you are supposed to spend $600 in purchases every year, I don't know what happens if you don't spend that much ( I know, I am a drone, I just do what they tell me!) My next oldest card is from 1999.

Sorry this is such a long post, especially my first one!

Ima saver · #2 (**permalink**) 10-18-2006, 03:48 PM

Pay it off, but DON'T close it. Just put it away or cut it up and don't use it! Do you ever get offers for 0% interest rate cards?

Ima saver · #3 (**permalink**) 10-18-2006, 03:49 PM

I meant to tell you that your credit rate will not be affected if you pay the card off. But it will if you close the account. Just don't use the account!!

JanH · #4 (**permalink**) 10-18-2006, 04:08 PM

I had closed my regular sears account long ago. Then when we bought a new washer a few years ago, we got the "new" sears mastercard. When we tried to lower the card interest rate, we got the same story. They told us that it is essentially a "store" card, not a true mastercard or some such thing. So I guess it was just another sears card, but you think it isn't. My daughter had used it for awhile and it has a balance on it that I am working on paying off. Then it gets filed under "never use this card." Ima is right. Pay it off, but don't close it. Don't use it either if you have another lower card cos I don't think they ever will go to a better interest rate.
And WELCOME to the forum.

dossin1 · #5 (**permalink**) 10-18-2006, 04:10 PM

Quote:

Originally Posted by Ima saver

Pay it off, but DON'T close it. Just put it away or cut it up and don't use it! Do you ever get offers for 0% interest rate cards?

I considered transferring the balance, but lately all the offers for transfers i've gotten now have a balance transfer fee something like 3% of the transferred amount. So I haven't transferred anything. And really, I only owe a couple hundred dollars on this card, but I wanted a lower rate for any future spending. I don't want to spend at 19% so I thought I could arm-twist for a lower rate. But they won't budge.

Ima saver · #6 (**permalink**) 10-18-2006, 04:17 PM

No, don't pay a balance transfer fee. Just pay it off and don't use it again. You can find a credit card with a lower percentage, but of course, it is still smart to only charge what you can pay off each month.

dossin1 · #7 (**permalink**) 10-18-2006, 04:27 PM

Thanks for your advice. You know Sears is like the "family" credit card, Mom had one, Grandma, etc. It was my first credit card out of college. I get misty-eyed at the memories

But since this nostalgia is costing me money, I'm gonna kick 'em to the curb.

JanH · #8 (**permalink**) 10-18-2006, 04:33 PM

Quote:

Originally Posted by dossin1

Thanks for your advice. You know Sears is like the "family" credit card, Mom had one, Grandma, etc. It was my first credit card out of college. I get misty-eyed at the memories

But since this nostalgia is costing me money, I'm gonna kick 'em to the curb.

I think you are on the right track with this one. You can keep the memory, though! Just don't use the card. I think it isn't the same one as before.

fake_usa · #9 (**permalink**) 10-18-2006, 04:51 PM

Quote:

Originally Posted by Ima saver

I meant to tell you that your credit rate will not be affected if you pay the card off. But it will if you close the account. Just don't use the account!!

Why shouldn't the account be closed?
Why would closing an account with no balance affect your credit score?

JanH · #10 (**permalink**) 10-18-2006, 05:33 PM

Quote:

Originally Posted by fake_usa

Why shouldn't the account be closed?
Why would closing an account with no balance affect your credit score?

It has to do with being the oldest held account in the credit history as well as available credit versus used credit. Others will be able to tell you better cos I'm just learning also.

JanH · #11 (**permalink**) 10-18-2006, 05:35 PM

There are really great explanations in other threads, but you'd have to search it out. Credit scores evidently are comprised of many elements.

sweeps · #12 (**permalink**) 10-18-2006, 07:33 PM

Jan is right. Closing accounts you've had open for a long time reduces the average age of your accounts. Also your debt-to-credit ratio goes up. Both of these negatively affect your credit score. Specifically how much closing your Sears card will affect your score -- no one knows, except maybe Fair Isaac.

poundwise · #13 (**permalink**) 10-18-2006, 08:32 PM

IMO, the difference is neglible.

First of all, length of credit history is only one aspect of your score. FICO states that this component, in total (considering all of your credit history in the form of credit cards, loans, etc.), makes up 15% of your total score.

Secondly, length of credit history is defined not only as "time since accounts opened" but also "time since account activity." Closing an older account would change the average age of your accounts but holding on to the card and not using it would also have a similar impact on your score.

My conclusion is that if an account is causing you financial trouble or personal grief, pay it off and close it. Don't let being over-concerned with your credit score, which is somewhat flaky anyway, keep you from doing something that is otherwise rational and is what you feel is best for you and your family.

vsjhoc · #14 (**permalink**) 10-19-2006, 08:58 AM

When the FICO score was completely shrouded in mystery (as opposed to being merely mostly shrouded today), the popular wisdom was that having too many cards with high limits would lower your score because you had too much available credit. We now know that it's the debt-to-limit ratio that affects the score, and that credit availability doesn't affect the score but may be a factor potential lenders consider.

So I panicked and closed a Visa I had for 20 years because I got a new card. My score dropped noticeably, and I think the only explanation for it was because I chopped off the average length of my credit history. (Or maybe it was that darn bankruptcy

).

brightfuture · #15 (**permalink**) 10-30-2006, 10:44 AM

this is the absolute worst credit card ever. I am trying desperately to pay down this card, which I closed a year ago! I have never been late, and never missed a payment. Before I closed my account, they would not even negotiate a lower rate. I am so done with this card.

Hot dog · #16 (**permalink**) 10-30-2006, 11:01 AM

Usually the 3% fee only applies to the checks and there usually is not a fee to transfer a balance but who knows depending how long you will spend paying it off 3% is better than 19% interest rates

vishenda · #17 (**permalink**) 10-30-2006, 01:34 PM

I'd pay it off and close it. It shouldn't hurt your credit negatively at all.

It sounds like they have some pretty nervy requirements! I've never heard of a master card (or any other card) requiring that I spend X number of dollars per year. If you can, I'd pay it off then tell them to stuff their $600 per year where the sun don't shine!

You will be better off without them. And businesses like that need to know that people won't put up with their bullying ways!

Good luck!