those credit card offers of $

devorahDecember 6, 2006

I have 1 Citi Bank card that I use most of the time and I keep a 2nd card from my credit union so that I will have an alternative should the need arise. What I am having trouble refusing are the credit offers that come with a financial incentive. I am always asked on by Amazon if I would like to get $30 off my purchase. Of course I would, but it means getting another card. Amazon is pretty easy to refuse because they require wayyyy too much information, but I succumbed to Sears the other day when they asked me if I would like my purchase to be free. And I don't understand why Citi Bank keeps offering to give me $50 if I will take out a 2nd card with them. What's up with that? I am very tempted because I would just lock the card in my safe once I had made my initial purchase. What would I be risking? Have you taken up any of these offers?

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myfask

devorah
Everytime you apply for one of these cards your credit takes a hit too many and it can lower your credit score.
The credit cards want you to have the card so maybe tempted to use them, run up balances and pay them interest.
People make the same mistake playing the "balance transfer" game. They keep transfering the balance form one "0" apr card to another.
The problem with this is you are not developing a long term credit history.
Should you have a major purchase in the future you want the best possible credit profile so you get the best rates.
Karla

    Bookmark   December 7, 2006 at 7:29AM
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cindyb_va

devorah,

Just remember the golden rule of business...no such thing as free...

These companies make these great offers because statistis tell them that eventually they will make the value of their offer back...and more. From YOU.

The second card deal...they hope you will give the extra card to a child/teen to use for emergencies, school, etc.
The other thing you have to watch for is sometimes the annual fee is *per card*.

Your idea with the two credit cards is, IMHO, perfect.

    Bookmark   December 7, 2006 at 1:43PM
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Karen_sl

And, a Sears card is with citibank...

    Bookmark   December 8, 2006 at 12:28AM
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greg_h

Okay, I'm going to play Devil's advocate.

Everytime you apply for one of these cards your credit takes a hit too many and it can lower your credit score.

How many hits before it will lower your credit score? If you were to just do this periodically (say once a year) would it affect anything?

These companies make these great offers because statistics tell them that eventually they will make the value of their offer back...and more. From YOU.

Actually, statistics tell them that on AVERAGE they will make their money back and more. You could be one of the ones that benefits from this deal, if you are careful about it.

    Bookmark   December 8, 2006 at 8:44AM
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myfask

greg
It depends on what type of credit you are starting with. higher credit scores 750+ can "absorb" inquires better than a 650+ score
IMO a $20 savings isn't worth the credit risk now should I be spending $2000 and am offered 10% or a $200 saving I might reconsider.:)

    Bookmark   December 8, 2006 at 2:26PM
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devorah

I have never had a credit problem, and I don't expect to make any major credit purchases. Hmmm still tempted.

Yes, I was surprised to find out that the Sears card is Citi Bank, but it doesn't give me 1% back on my purcases so I don't ever plan to use it.

This all explains why, when I switched my AT&T card over to a Citibank card, the amount I could borrow was sharply reduced. I'll have to watch that I don't go over. I have my credit union card if I ever do need to make a major purchase. It pays back 1%, but not the 5% Citi bank pays on gasoline and groceries.

    Bookmark   December 8, 2006 at 3:27PM
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myfask

devorah
Citibank bought AT&T Universal Card about 8 years ago. 6 years ago is when they merged the companies.
Citibank also handles the Home Depot accounts.
you also want to keep an eye on your balance vs your credit limit, one way they determine your credit score is the % of credit that you use.
I know it is confusing.
Karla

    Bookmark   December 8, 2006 at 5:11PM
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jules8429

FYI-Citibank is changing the amount back on it dividend card. Mine changed in late October to something like 2% back on gas and groceries instead of the 5% previously. It seems like they also dropped many of the other categories that had the higher cash back percentages. I've stopped using it for gas and switched back to my BP Visa-get 5% back at their gas stations with it. I'm sure citi doesn't really care that I've cut back using their card-I always pay it off every month so they have actually lost money with the 5% rebate!

    Bookmark   December 9, 2006 at 8:50AM
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joyfulguy

Hi everyone,

Get up earlier in the morning.

That'll give you some extra time to figure ways to out-con the masters of con at the con game.

Or - perhaps you could do that while in gridlock on your commute, instead of letting your blood pressure rise to calamitous levels.

My relations with Citi were getting a few letters a year offering me a loan of up to about $3,500.00.

When I called to ask the rate ...

... it was usually around 30% - and that's for one year, not four!

I told them that I have a fully secured line of credit for more than they're offering - at 6% (then ... but 6.25%, last time I asked: it's unused at the moment).

So - their sending me any more (addressed) mail was a waste of trees, though it did benefit Canada Post, but it wasted their time and mine, as well.

So - let's just can it, huh?

Haven't got such a letter since.

But - their guy did chastise me for being less than courteous - I thought that a bit of a switch!

Have a lovely weekend - nice sunny day here, but yesterday the local city got a foot and a half of snow, though only about 4 inches on the farm, about 15 miles away.

ole joyful

    Bookmark   December 9, 2006 at 2:43PM
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