Two years ago, my DH did a little Christmas Shopping at Sears. He wanted to charge an item on his Sears card but the clerk suggested he sign up for a new Sears Citibank Gold Master Card and would get 20% off his first purchase. DH thought that was a good deal and signed up. The clerk also said that this new Sears Citibank Gold Master Card would eventually be replacing the old Sears card. So, he now had 2 Sears charge cards!
We have never used that Sears Gold Master Card since then and in fact, when we got a new card in the mail this past July, we did not activate it and we cut it up and threw it away.
Then yesterday, we got a letter in the mail from Sears Credit Card Services and it said “Due to this challenging business and economic climate, the cost of doing business has dramatically increased. As a result, we are making rate and fee changes …”
Sears is now going to charge $45 a year as a “membership fee” for that Sears Citibank Gold Master Card. $45 for what – to have the privilege of buying something and charging it on their card? I don’t think so.
So, we called today to cancel the card. BUT, our credit score will probably be affected by the canceling of a credit card.
How are the credit card companies getting away with this? Cancel a card and they subtract points from your credit score?
Didn’t those banks get money from the government? Why do they now need to charge service fees for their cards? Aren’t the current percentage rates they are now charging enough to cover their expenses and then some?
The $20 savings that DH had on that initial purchase sure wasn’t the bargain he thought it was. He signed up for that credit card in good faith.
Oh, boy, people … be careful out there!