Credit card rant

lockhaven · Aug 4, 2012

interest free payments are good, but always read the fine print. late for just 0ne payment can make you owe some high interest rate computed from the day of sale even if you have paid on time for years.

Bird · Aug 4, 2012

Yeah, I've got one of those Home Depot CC in the file cabinet; never use it, but one day long ago, they offered me a discount ($25 if I remember right) on the stuff I was buying that day if I'd accept it, so I did.:laughing:

CBW1999 · Aug 4, 2012

You have to be very careful with the cards kept in the sock drawer. 10% off if you apply today.....sometimes 15%....we all have a tendency to be drawn to that. Here lies the problem.

Each time you are approved, the credit limit given effects the amount of other requests. lets say over a years time you do this 5 times. Each card allows 500.00 max. Now 2500.00 is tied up of what you might have as a maximum. Now, something happens good or bad but, you need to finance say- a tractor! You apply and are denied- hmm why? Well based on your income and expense, the creditors calculate you can "afford" or are risk worthy of 10k. The tractor amount financed is 9000.00. well with a potential 2500.00 already in your sock drawer, the industry will only extend 7500.00 because at any point, you could go max everything out and not pay.

Never mind that each time you apply for a card it is recorded- approved or not. at some point, it is considered "excessive credit requests" which, tank your credit score.

I have had this discussion with my wife multiple times. The amount of money saved on the purchase is negligible compared to how it impacts credit. They give you the discount regardless of being approved so, in my mind- they already have the flexibility. Again, it is the interest they will generate as revenue that allows them to offer %off to apply. Their game, their win.

CinderSchnauzer · Aug 4, 2012

There is truth to many of the comments in this thread. The key is we have to be responsible for our own lives and make the choices that work for us. Yes there is always fine print - read it - use it to your advantage. Don't let the CC companies or finance company dictate how you live your life. As I said before, If you use credit responsibly - they love to give you more.

Another example - leased a couple vehicles from GM. Bought a couple with 0% financing. They send me a letter saying "you're pre-approved for any vehicle GM sells."

Sure they love the ones that always carry a balance and pay 30% interest, but with a little effort you can be the winner instead.

JDgreen227 · Aug 4, 2012

Wow....I didn't think this thread was going to provoke so much discussion and furnish such good advice. Agree 100% that having a lot of unused cards that one signed up for to get a one time 10-15% discount is a bad idea.

charlz · Aug 4, 2012

Yep, nobody (outside the rating companies) knows how the credit scores are computed and each agency is a little different. It is all about assessing your 'riskiness', how much money they might make off of you in interest payments versus how likely you are to make those payments. That's why you can't get credit if you don't have a credit history, you are an unknown risk. Too many cards? might not be able to make your payments. Too many recent credit reports? you have been applying for credit and might now owe more than has been reported to date. Getting rid of a bunch of unused credit cards can actually make your credit score go down because now fewer other companies 'trust' you with a credit line. It's pretty crazy stuff.

When I was working in the datacenter side we would sometimes do projects to provide connectivity to companies that consisted of nothing but Math PHD's. These guys would analyze data and come up with the algorithms that determine who gets 'special offers' for new credit products etc.

Gale Hawkins · Aug 5, 2012

JDgreen227 said:
Guys, I have had a credit card from Chase for at least 15 years now and my credit record with them is impeccable as it my credit rating (800+) but they are really beginning to tick me off. Unlike my wife who charges everything on her cards, I have only two credit cards and basically only use the Chase one, most of my purchases are $50-150 at most. Problem is, when I want to charge a big-ticket item like a plasma tv or a computer they want me to contact them first at the toll-free number and let them know I am making a charge of over $500 (which is what they told me two years ago) and it's really beginning to irritate the h*ll out of me. I might make a charge of over $500 once or twice a year but I might need to make one in an emergency situation like a car repair and it is a PIB having to call and let Chase know I want to exceed their $500 limit.

Called them this morning and told them quote: "My wife can charge $3000 on her card any time she wants and never needs to call you for authorization but you limit me to $500 for what reason?" They told me well if you want to make a charge that is out of the ordinary for you we will put a hold on the charge until you call us. What utter BS !!! My credit limit is twenty grand and I have never used even a tenth of that at one time. I told them this morning if you put a hold on any charge I make under my credit limit for ANY REASON AT ALL from now on I am going to cancel my card and go elsewhere. They say well this is for your protection I told them BULLS*** it's for your protection because you say my liability in case of fraudulent use of my card is $50 and then I hung up on them.

Any comments? Thanks.

It is just like you with your tractor. If it starts making a noise that you have not heard before you stop and check it out do you not? :thumbsup:

JDgreen227 · Aug 5, 2012

Gale Hawkins said:
It is just like you with your tractor. If it starts making a noise that you have not heard before you stop and check it out do you not? :thumbsup:

If you had been following this thread you would realize I cannot hear so that pretty much cancels out my being able to hear any strange noises my tractor makes...:laughing: but I do see your point. BTW I have made multiple charges on the card this week, one for nearly $700, one for just over $800 and the last for $1200 and they did not hold up any of them so maybe they did pay attention to my griping.

CBW1999 · Aug 5, 2012

JD.....
I would be willing to help you out with this...............1200 to 2500 dollar transaction having it shipped to me. Really see if they are paying attention or not. I'll PM you a list of "gifts" you can send me! :cool2:

JDgreen227 · Aug 5, 2012

CBW1999 said:
JD.....
I would be willing to help you out with this...............1200 to 2500 dollar transaction having it shipped to me. Really see if they are paying attention or not. I'll PM you a list of "gifts" you can send me! :cool2:

Sorry, while I appreciate your kind offer, Jinman has first dibs on the "gifts" as he asked first and is also a FB friend....:laughing: