Credit cards and arbitration clauses

cocoonerNovember 29, 2005

We just received a notice from our credit card company notifiying us that, effective the beginning of the new year, that all disputes will be subject to binding arbitration. This means that one gives up the right to sue and cannot enter a class action suit.

I take a dim view of this, but may keep the card and find another one for those times when I want to use one. I would keep the original card since we've had it a long time which is good for one's credit rating.

Do other's credit cards have such clauses?

cocooner

Thank you for reporting this comment. Undo
scryn

yes, one of our cards had it. I don't remember what it was though. We don't carry credit cards anymore. We just have one through our credit union, for emergencies. I got so sick of them selling my name and sending me notices on my privacy rights and arbitration stuff that I canceled them all.
If you have a car loan and a mortgage I think that you would be fine and not need to keep the card for a good credit rating.
My husband and I recently got another car loan and we do not have credit cards anymore. We do have other older car loans that were paid off and a house mortgage. They gave us no problem when we applied. We are both under 30 also, so we do not have that much credit history.
I was always told that to get a credit score, get a credit card and once you get a loan (house, car) you really don't need the credit card anymore because you have shown that you can pay off the loan on time. I am not sure if this is 100% true though.
-renee

    Bookmark   November 30, 2005 at 4:39PM
Thank you for reporting this comment. Undo
cowboyind

I think your idea to keep the card but not use it is probably smartest from the standpoint of your credit score. One thing that's said to help your score is to have a lot of available credit that you're not actually using.

You're also to be applauded for reading the notice they sent you. Probably about 90 percent of their customers that got those did not bother to read them, which is why they will easily get away with taking their customers' rights away from them.

    Bookmark   December 1, 2005 at 8:28AM
Sign Up to comment
More Discussions
Programmable Thermostat proof
Does anyone have hard copy proof of the savings that...
rjexit5
Do I need to give a 1099-misc to the lady who cleans for me?
For the first time ever, I began having a lady clean...
sogofan
Home Loan advise? Remodel and Addition
I am looking into a renovation/remodel of my current...
allieundercover
Here's a question for those who pay with cash
It happens occasionally, I'll be in a checkout line...
SnidelyWhiplash
Buying a new house financial questions?
This seems silly, but I don't have anyone else to talk...
Butternut
© 2015 Houzz Inc. Houzz® The new way to design your home™