No. of Recommendations: 0
I just called First USA today, before reading Rob's post (something about great minds...), the summary is exactly what they told me with one exception.

<<1. The intrest my be 9.99%, if your late 2 times in a 6 month period that gets jacked up to 19.99% and that is FOR LIFE of the account.>>

I specificly asked about this point. It isn't for the life of the account, but after you reestablish a consitent on-time payment history for 6 months they will review the account and consider lowering the rate. She said you MAY not get the great rate again, but you could get something better than a punishment rate if you reestablish good payment history.

I also asked about credit dings. First USA is more interested in "what have you done lately." A ding in the last 6 months costs much bigger than a ding 4 years ago. If you are denied credit based on a credit report you are also given the name of the underwriter so you can explain a credit report error or something that was misinterpreted, and they will reconsider the application. Working with other card issuers can also be interpreted favorably (ie: I have worked out a payment plan with Citibank, and I am doing this and this).

First USA's credit limit is based on debt to income ratio, and how much available credit you have. If you have an open account with a $3000 credit limit and zero balance it will lower your First USA credit limit. If you have open cards that you don't use with zero balance you probably want to close them. This is especially true if you intend to card surf to First USA/Yahoo! visa.

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