skip to main content

Household Finances

Checks from Credit Card Companies

17 years ago

Would you say they are pretty good 'deals' (if you could even call it that) PROVIDED THAT you have no balance on the card? We're just looking for the best way to finance the construction of a home office in our home. We have no balances and the offers are either 0% for a few months or 3.x% for the balance. All current CC balances are $0 (yay!)

Sort by:Oldest

Comments (5)

saphire
17 years ago
You would have to stop using the card since new stuff would automatically have interest and at the regular rate. Check how much the fee to use it is, usually under 100 and it is one time but you need to read the fine print. Finally, if you are even a day late they can seriously increase your interest or if you are in any way late with any other account you have with them or in theory with anyone else where they can get the info through a credit check

Never actuslly used one but considered it under similar circumstances. I was being offered 4.9 lately so 3 is good but you need to read the fine print
clg7067
17 years ago
Check the fees closely. I just got some checks from the evil Ch*s* card and the fee jumped to 3% max $150.
Related Discussions
Anyone experiencing this with credit card companies?
Q
Comments (22)
I don't think that there's been much change in the parameters relating to my cards (one recently signed up for) in recent months. It's the old corporate game - while they love competition among their suppliers ... and among their customers ... they hate it on their own level and work to get rid of their competition at whatever cost: buy the competitors, squeeze them out, start frightening rumours about them or whatever. There aren't a lot of card companies ... so they can pretty well set their own rules ... and we can take it or leave it. They offer unsecured loans ... and have been suffering losses, as people die owing, go bankrupt, etc. And, the economy being what it is, with so many becoming unemployed, they likely anticipate more such losses in the near future. Plus many of the banks have been left holding the bag on many of those stinky loans, mortgages, etc. - I own Canadian bank shares, which got stuck with a number of them, and the value of my shares are now less than 40% of what they were in early summer 2007. Good wishes for increasing skill at managing your money effectively. ole joyful
...See More
Credit Scores and Open Credit Cards
Q
Comments (3)
DH & I also have several cards with no balance on them. We will be applying for a mortgage soon, so I asked my banker this question. He told me to cancel the majority of the cards, but to keep either a couple with fairly low limits or one card with a pretty decent limit. He said that banks like to see someone have $30,000-$40,000 worth open credit on cards (depending on your income). He says that lets them know that you have a source of available money that you can access quickly. He said they don't like to see huge amounts of open credit because that shows the potential for a problem. We pulled our own credit reports & they said that the amount of unused credit we have may actually be hurting our score. We have only a tiny fraction owed but a lot of open credit. Another thing my banker & the credit report mentioned was the ratio of how much you owe to the amount of open credit. Example: If you owe $5,000 & have two cards with a total credit limit of $20,000, cancelling one card that has a $10,000 limit can actually hurt you. Instead of having a balance that equals one quarter of your available credit, you will now owe an amt. equal to half of your available credit. If you want to cancel, make sure you write a letter to the credit card company & keep it & proof that you mailed it on file. Make sure to request that they note in your file that the card was cancelled at your request. Having a lender cancel your card can hurt your credit score. If you won't be applying for a loan any time soon, you can just leave them & they will drop off of your credit report after a few years.
...See More
Question about credit check and name on mom's card
Q
Comments (9)
I know this for a fact. If you are an authorized user, you are only authorized to use the card and the c/c does not report anything about you to the credit reporting agencies. Your mom is solely responsible for the card. If you became a JOINT user of the card, then you are equally liable for the charges and they report the payment history to the reporting agencies. How I know this is I am from Canada and married an American. I had no US credit history and they do not take Canadian credit history here even though I had good credit back home. At first I was an authorized user of dh's cards, thinking they would report the info to the credit bureaus. When I checked my free annual credit reports, tehre was nothing on me. No info whatsoever. It wasn't until dh made the cards joint (and me ultimately responsible for the cards too) that the info was reported to my record. I also have almost the same high fico score as dh. Basically, all his credit history transferred to me and I reaped the benefit of his high score. Authorized user = no reporting to agencies Joint user = report to agencies and the user is liable for charges.
...See More
Call your credit card company
Q
Comments (5)
I just recently tried, I didn't make any threats. Was told no at this time but "seeing how you are a valued customer we would like to give you an increase on your credit line" The increase was not what I wanted, I use my card very little so the amount available is no biggy to me Sounds like I need to try it this way next time! Thanks for the info.
...See More
Chemocurl zn5b/6a Indiana
17 years ago
I had a similar situation...got $5000 (no transfer fee...you have to watch that too), at 0% for one year.

I put the card away (outta sight), and set it up to take automatic fixed monthly payments (about $200 over the minimum required), which assured me that it would never be late.

They (the cr cd companies) are assuming that you will put other charges on the card, and then pay interest on those items until the transfer is paid off. They apply the payment to the amount that has the lowest interest...the transfer, b4 the other purchases get paid off.

3.x% for the life of the balance transfer loan amount sounds good to me.

Sue
joyfulguy
17 years ago
Read the fine print - carefully (even if you need a magnifying glass).

Don't put new purchases on that card, in most cases - a good way to turn the 0%, 3.x%, or whatever on the transfer ...

... into high interest fees on the part of the ongoing balance related to the new purchases.

Be very careful to *never* transgfress any rule, e.g. late payment, etc.

ole joyful

P.S. I thought that the "cheques" had almost always to go the other way - *toward* the credit card cos., not fom them to us!

Credit cards must produce good returns for the issuers ...

... for they sure are enthusiastic about offering them to us!

o j
saphire
17 years ago
Got one for 1.8 today until September, actually ran the number to see if it was worth keeping the cash in a high interest account until then (it is not, cost is about 300, return is 600. For 300 it is not worth trashing my fico score

Related Stories

FLOORS Checks, Please! 13 Choices for Checkered Floors

By Lily Gahagan

Checkerboard Patterns Go From Casual to Ritzy, From Marble to Grass

REMODELING GUIDES Finish Your Remodel Right: 10 Tasks to Check Off

By Laura Gaskill

Nail down these key details to ensure that everything works properly and you’re all set for the future

HOME TECH Why Google Just Paid $3.2 Billion for a Company That Makes Thermostats

By Mitchell Parker

Smart home technology just got a new champion — and everyone is speculating about the reasons

FUN HOUZZ Binge on the Design of ‘House of Cards’

By Becky Harris

Pull up a seat to Netflix’s addictive political drama for sets and fashions rife with intrigue

LIFE 10 Quick Ways to Get Your House Ready for Company

By Becky Harris

Holiday checklist: See how to make your home 100-percent welcoming in an afternoon. Plus: How to be a good guest

REMODELING GUIDES 6 Must-Know Lessons From a Serial Renovator

By Bud Dietrich, AIA

Get your remodel right the first time, with this insight from an architect who's been there too many times to count

ORGANIZING Decluttering Ideas From Around the World

By Leonora Sartori

Home organizers share their tips on how to think and live more clearly

TRAVEL BY DESIGN 10 Ideas for Packable Decor From Your Travels

By Laura Gaskill

It's fun to decorate with finds from a trip — but not so fun to lug them home. These ideas are affordable and easy on the suitcase

DECORATING GUIDES Top Design Trends From the Winter 2015 Las Vegas Market

By Becky Harris

Interior designer Shannon Ggem is tracking finishes, motifs and design combinations at the 2015 show

DECORATING GUIDES An Expat’s Guide to Making a Home Away From Home

By Mariana Pickering (Emu Building Science)

How do you stay balanced when each foot is in a different culture? You take a stand where you hang your hat

Sponsored

More Discussions

Question about c.d.'s

1