Chase Cancels My WaMu Credit Card

I hadn't used my WaMu credit card since the first quarter of 2006. Back then, it was a Providian credit card. But then Washington Mutual (WaMu) bought Providian, and, just recently, Chase bought WaMu.

Now, the reason I wasn't using this card is because a) it didn't have a competitive interest rate for purchases and b) the rewards program attached to it wasn't anything special. I had plenty of cards to choose from, so why would I choose one with a high APR and a very ordinary rewards program? I used this card to take advantage of an attractive 0% balance transfer deal, then, when the interest-free period expired, I paid the card down to zero. I kept the account open because the $11,000 worth of credit available to me with this account was helping to keep my credit score high.

Another reason I liked having this account was because I had free access to my Bankcard FICO credit score (provided by TransUnion.) No other card in my wallet (and I have plenty) offered this unique benefit.

Last month, I received a letter in the mail informing me that Chase was closing my WaMu credit card account because I hadn't used it in more than 12 months. The letter was short and to the point:



I wasn't happy about this. First of all, my FICO® credit score would likely drop due to the decreased amount of credit available to me. Second, I liked having free access to my credit score. Who wouldn't?

So my first reaction was to try and use the card to see if Chase had deactivated it yet. I tried to buy a song from Amazon ($0.99) but the charge didn't go through.

Next, I called the customer service number on the back of my card. Despite the late hour, I was able to talk to a customer service representative (CSR) right away. I asked the CSR to reactivate my card. I told him that I wanted to do some Christmas shopping with it immediately (which wasn't a lie. I would have spent some money on the card to keep it open.) The CSR said he couldn't do it (listen to the MP3 audio here.) He explained that WaMu had closed 1.3 million inactive accounts. The CSR anticipated that I would complain about the negative effect this action would have on my credit score, so, before I could say anything, he went on to say that this action, "will not appear as a negative mark on your credit bureau report." I complained a bit, then he explained that because the account was closed due to inactivity, and because my account had a zero balance, I had nothing to worry about.

I did not see any point asking for a supervisor, but I did call back a few hours later (their CSR's are available 24/7) to see if I would get a consistent response to my reactivation request. The second CSR gave the same canned response to my appeal for reactivation, but also added that I could apply for a new WaMu credit card account if I wanted to (MP3 audio here.) This suggestion made sense to me even though I wasn't happy about it. The "don't worry about it" nonsense that CSR #1 gave me was insulting, because we both knew that my score will be affected. I'm just going to hope that the ding to my score is a mild one.

My credit score is 804 right now and I want it to either stay there or rise. So, should take my time and find a really great credit card and apply for it?

Having thought about it for a few seconds, I've decided to apply for another WaMu (Chase) card, because I want my credit score to stay high and I want free access to my score. According to the WaMu website, all WaMu cards still provide free access to the accountholder's FICO.

I found that I can still login to my WaMu account online, so I visited WaMu to see if they had any credit card offers ready and waiting for me. I found no offers in there.

I will try to find a good WaMu card and apply for it. I'll post again after my application is processed.

So I may end up with another WaMu credit card account after all this, which would be a silly waste of time and resources (paper, plastic, phone calls, etc.)

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It's A Long Road...

Now that we have this 46 acres of land, it's a long road to getting everything set up and running smooth. There is so much to do, from devising and setting up alternative energy systems to making adobe bricks to dealing with the utility companies that we do plan to do business with.

The dirt road you see -- that's the road we live on. We see another vehicle go by once every two or three weeks. When we came here, it was a nameless and dusty easement used by various property owners in the area to access their land.

That nameless dirt road is a good part of why I have set up a temporary office in my neighbor's home-in-progress. In order to get telephone and Internet service, mail, UPS deliveries, and just about anything else, we had to get our dirt road a name. On the surface it was a simple process, but in reality, it was long and slow. After weeks of waiting, it was through the intervention of a local that we finally were able to get a name and number. However, that is just the start of the effort to get phone and Internet (the only utilities we are going to get out here, as we're going with alternative energy sources for electricity).

There is a waiting list for everything. We recently learned that we won't have a landline -- thus no DSL -- until much longer than the 3 MONTH waiting period we were initially informed of. August 28 is now said to be the big day. And, although the satellite company sent our equipment a long time ago, we still don't have an install date. Never mind that they told us two weeks....

So, it looks like I'll be toting my computer stuff and generator over to my neighbor's to work for quite a while... Fortunately, it's so beautiful here in the high desert lands on the border -- I walk out of my currently humble abode and see clearly into our neighboring nation -- that these delays and hassles feel like small details in the grand scheme of things.

While things seem to move slowly in my part of the world, that doesn't seem to be the case in the rest of the world. Now that the psychological barrier of the $100 mark has been breached, the price of oil has been shooting up even faster. Last Friday, according to MarketWatch.com, the price per barrel touched $117. Food prices have also been moving up, some quicker than others. Rice has gone up astonishingly on the world market, causing major exporters to ban exports, as they fear that they will not be able to feed their own citizens. Some nations have even started to ban the export of wheat. News headlines from all over the world are full of the food crisis and riots in areas where rising prices are leaving the poor hungry.

Looking at all that is going on -- how quickly things are seeming to deteriorate in the global economy, the biggest names in the financial industries teetering on the brink of fiscal disaster, the rising cost of living -- it seems to me that this point in time is one in which all of us should be thinking seriously about debt reduction. The less debt we carry into the uncertain economic times that seem fairly sure to be a part of our future for a while to come the better.

And, on that note, I read a really interesting article on the Motley Fool the other day. It described how 0 percent balance transfer credit card offers can -- with discipline and commitment to a goal of debt reduction -- be a valuable tool in getting control of and eliminating credit card debt.

Many people use such offers unwisely and end up with a much greater debt burden or simply move debt around without ever really dealing with it. However, the smart consumer can really make out with such offers, using them as a means to really knock down the principal of their debt. Things out there in the economic world don't look like they are going to get better any time soon, making now a great time to act to reduce your debt. A glance to the left offers some great resources for 0 percent balance transfer credit card offers. Apply today and you may soon be able to put this debt reduction tool to work for you.

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