| Should I take the offers??? |
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mchnhed
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| Should I take the offers??? |
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I received two credit card offers in the mail that seemed rather inviting... lower APRs than what I currently have, and they say "UP TO a $XXXXX credit limit" (which is higher than what I currently have).
I called both companies and asked them what my credit limit would be if I signed up... they both told me they couldn't determine that without me applying. I told them I didn't want to sign up for the credit card and possibly get stuck with a small credit limit and not want the card anymore. The representatives said that I could just cancel the card after I receive it (if I don't like how high the credit limit is) and it would NOT affect my credit score negatively.
My questions are.... IS THAT TRUE?? And what should I do if I want a card with a higher limit and lower APR?
Thanks.
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Mon Nov 21, 2005 5:38 am |
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mchnhed
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Doesn't anyone have anything to say? lol.
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Tue Nov 22, 2005 8:16 pm |
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mchnhed
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This is rather disappointing... 94 views and no answers... 
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Thu Dec 01, 2005 5:29 am |
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cravej
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Nobody knows what it will do to your score until after it happens. If you do that frequently it will hurt your score. If this is a one time thing, don't worry about it.
Have you asked your current CC's to lower your rates or increase your limits? If your history is good, then they are very likely to oblige instead of losing you to another company.
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Thu Dec 01, 2005 6:39 pm |
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Andrew
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I was planning on consolidating some debt on a 0% balance transfer, turns out the limit was so low it wasn't worth the effort. I was left with just an extra card to deal with, so good luck there.
Have you tried just calling them and asking them to raise your limit and lower your rate? Tell them you've been shopping around. Just asking often works if you pay on time and have been there a while...
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Thu Dec 01, 2005 7:01 pm |
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mchnhed
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Well the reason why I am considering these other cards is because I've already contacted my current companies and they said they've raised my limit as much as they can and decreased my APR as much as they can... for now.
So, the reason i am possibly taking these other cards into account is because I want a lower APR (which is already stated on the offers) and a higher limit. But my main concern is simple - is it possible to just apply for the cards for the sole reason of finding out what my rate/limit would be (kind of as a trial)? Remember: i don't want this to negatively affect my credit score.
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Thu Dec 01, 2005 7:55 pm |
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Christian_male
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I'd be wary of any CC offer. They may offer you a lower limit right now, but can they gurantee it for a set period of time? Under what conditions will you be penalized with a higher rate? (CC companies will penalize you with a higher rate if you don't make any purchases for a month).
PBS' Frontline did a story on the credit card industry, here is a link to 8 things you should know about credit cards
http://www.pbs.org/wgbh/pages/frontline/shows/credit/eight/
#1 is interesting: » Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment -- or simply because the bank feels you have taken on too much debt.
Be careful of late fees. There is no limit on what a CC company can charge for a late fee.
I suggest reading the fine print very closely.
What you may want to consider is a consolidation loan and ditch the Credit Cards altogether, you fix the rate to an affordable rate, and you know the term of when it will be paid off.
Freedom without bounderies is not freedom at all, it is chaos.
[url]breakdebtsbonds.blogspot.com[/url]
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Thu Dec 01, 2005 9:47 pm |
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cravej
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quote:
Originally posted by mchnhed
Well the reason why I am considering these other cards is because I've already contacted my current companies and they said they've raised my limit as much as they can and decreased my APR as much as they can... for now.
How recently did you contact them? Do you have a good history with that CC? What is your current interest rate & limit? Are you close to having that card maxed out?
Do you have a lot of credit cards? If you only have one, then getting a second one is not a bad thing. If you have lots of cards, then adding one won't look as good.
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Fri Dec 02, 2005 5:55 pm |
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mchnhed
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quote:
What you may want to consider is a consolidation loan and ditch the Credit Cards altogether, you fix the rate to an affordable rate, and you know the term of when it will be paid off.
Well i'm not going to do that. That wouldn't exactly be smart for a number of reasons...
1. It's best to purchase everything with a credit card and pay the bill off in full in order to build up a secure & good credit history
2. I enjoy only having to keep track of a couple transactions in my check register per month (payments to the credit card companies)
3. I want to keep a "buffer" on my buying power
(I'm actually rather surprised that the people on this forum don't already know this information...)
quote:
How recently did you contact them? Do you have a good history with that CC? What is your current interest rate & limit? Are you close to having that card maxed out?
Do you have a lot of credit cards? If you only have one, then getting a second one is not a bad thing. If you have lots of cards, then adding one won't look as good.
I contacted both companies a few months ago. I do have a good history with the 2 companies (except for a couple late payments in the past couple years, which was just my absent-minded mistake). I don't remember what my current APRs are, but my limit is in the thousands on one card and hundreds on my other two cards... for a total of 3 cards. I don't have any cards maxed out. In fact, all the cards are paid off, however as I said before, I would prefer a lower interest rate and a higher limit, which is why I'm considering taking (err gambling on) the other 2 offers.
My credits score is not a major concern for me right now, but i'm looking to purchase a house within the next few years, so I wish to keep it high enough to get the lowest possible interest rate mortgage. Considering this, even if I take and reject the 2 offers ((if the APR/limit isn't high enough), and even if that has a negative affect on my score, is that something to be concerned about considering the relevant time proximity?
Thanks in advance.
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Fri Dec 02, 2005 7:52 pm |
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cravej
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I'm no expert, (I came to this board to tidy up my credit habits for my first home purchase) but my instinct tells me that 3 cards is plenty & to stick with the ones that have the most history. If you keep using them and paying them on time & keeping the total usage lower than 30% of the limit, then they may be willing to extend you better rates & higher limits if you call back in a few months. I've stuck with an MBNA card for 8 years & the limit has creeped up to 12k without me asking. When I asked, they lowered my rate to 9.99%. Someday I'll get them down to 7.99% 
I'm sure you know this, but I have to say it: Absolutely no more absent-minded late payments. They are more detrimental than any additional card offer you accept. If there is an absent-minded late payment, call them & see if they are willing to work with you.  The credit card companies are very competitive, and they will do a lot of strange things to keep customers.
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Fri Dec 02, 2005 8:38 pm |
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mchnhed
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Well guys, i decided not to go with one of the offers. I think I just might try out the other offer just to see what I get, and if I don't like it I'll just cancel it. That shouldn't do too much harm to my credit score. Besides, my score won't matter much to me until about another 2 years anyway. Thanks for the conversation though. 
MY DOMAIN: Martello Solutions (FERRARI, anyone?)
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Fri Dec 09, 2005 3:38 am |
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cravej
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quote:
Originally posted by mchnhed
I think I just might try out the other offer just to see what I get, and if I don't like it I'll just cancel it.
If you don't like it, then call them & ask to improve it, before you give up on it. I opened one card, & called the next week to extend the credit line for a large purchase. Without that, the card would of been useless to me.
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Fri Dec 09, 2005 5:18 pm |
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rockhound
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The question I would have is: Are you sure that you are thinking the right way about wanting a credit card with the highest credit limit possible? What is it that you need all the credit for? This may be like wanting a front-end loader instead of a shovel, so you can dig your own hole faster and deeper. The other thing to be wary of is that the low APR is usually a come-on, but the fine print tells you that after the 3-month trial period it goes up to 20% or something.
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Sat Feb 04, 2006 4:41 am |
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buzlighty1
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| Re: Should I take the offers??? |
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quote:
Originally posted by mchnhed
I received two credit card offers in the mail that seemed rather inviting... lower APRs than what I currently have, and they say "UP TO a $XXXXX credit limit" (which is higher than what I currently have).
I called both companies and asked them what my credit limit would be if I signed up... they both told me they couldn't determine that without me applying. I told them I didn't want to sign up for the credit card and possibly get stuck with a small credit limit and not want the card anymore. The representatives said that I could just cancel the card after I receive it (if I don't like how high the credit limit is) and it would NOT affect my credit score negatively.
My questions are.... IS THAT TRUE?? And what should I do if I want a card with a higher limit and lower APR?
Thanks.
I was told once by my personal banker that frequent applications for credit in a short period of time will negatively affect the rating.
Owner of http://www.excellent-credit-cards.com
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Sun Feb 12, 2006 2:44 pm |
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mamoore
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| I am not sure what you should do. |
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I really am not. I dont know your overall financial situation. I just wanted to say that your better off than most people because your thinking about it.
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Thu Apr 06, 2006 8:22 am |
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