I signed up for a Sears credit card and everything was fine. I paid it every month on time and more than the minimum. Then I bought a house and ran up the card to the max of $5000 buying new appliances. I continued making payments above the minimum. My interest rate was around 15%. Then out of the blue I am told they have closed my account and my new interest rate is 29%. WTF?
I of couse called and went round and round trying to find out why it was closed. I kept getting told I must be behind or something. Nobody could find a reason why.
The only "guess" I got from Citi (who runs the Sears Card) was that in purchasing my house I put my debt to income ratio above their limit and it was automatically closed by the computers. So 2 years of being a good consumer and trying to establish credit by paying my card on time means NOTHING to these people.
I'm not the only one this has happened to. Sears will let you run it up and then raise your interest rates and close the account. This is a SCAM. Don't get a Sears Card unless you have no choice.
Product or Service Mentioned: Sears Credit Card.
Monetary Loss: $5000.