Reply
Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

BankAmericard offer questions...

So, I got an offer in the mail today for a BankAmericard Cash Rewards.

 

It has 0% interest for 15 months and then it goes to 14.99%

 

My question is, does a lower interest rate offer on a new credit card, indicate your approval chances?  I'm used to 19.99% rates. 

I really want/need a card with a higher limit than my $500 Cap One card.

 

This is what I have:

 

Cap One - $500

U.S. Bank Reserve Line - $750

Walmart - $700

HSBC (now Cap One account after they bought it from HSBC - ($15k limit, $8k balance- but the balance has been going down for the past 4 yrs.  HSBC/Cap One stopped the use of this account/card a few months after I bought the motorcycle).

 

All accounts are 0 balance or less than 10% utilization, except for the HSBC/Cap One account.

Total utilization is 50%.

 

AAoA - 2yrs. 6 mos.

EQ 702 myfico

TU 684 myfico

EX 677 Experian.experiandirect.com

 

(1) paid collection on TU and EX, 2yrs. old. (utility bill $165, long story)

 

Should I go for this card?  Seems to be a good card to have?


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

AMEX GOLD,AMEX BCP-$10k,US Bank PLOC-$15K,CSP-$15k,Freedom-$6k,CapOneVisa-$15k,US Bank Visa-$10k, DCU Visa-$10k,Paypal MC-$15k,USAA MC-$6k,Lowes-$8600,CapOne Visa-$10k,Discover IT-$12.9K,BoA Visa-$10.1K Walmart -$4k,GECU Visa-$3500, US RLOC-$750

Take the FICO Fitness Challenge
Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

Re: BankAmericard offer questions...

Or should I get a GE Credit Union card which I am a member of?


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

AMEX GOLD,AMEX BCP-$10k,US Bank PLOC-$15K,CSP-$15k,Freedom-$6k,CapOneVisa-$15k,US Bank Visa-$10k, DCU Visa-$10k,Paypal MC-$15k,USAA MC-$6k,Lowes-$8600,CapOne Visa-$10k,Discover IT-$12.9K,BoA Visa-$10.1K Walmart -$4k,GECU Visa-$3500, US RLOC-$750

Take the FICO Fitness Challenge
Valued Contributor
rootpooty
Posts: 1,685
Registered: ‎10-28-2011

Re: BankAmericard offer questions...

You really dont have much of an option with 50% util reporting

NFCU plat 5k | NAVCHECK 5k | NFCU cashrewards 3k | BOFA 123 3k |
Chase Freedom 1.5k | Amazon 1800 | Walmart 1450 | Buckle 300

On the prowl for Chase Sapphire Preferred!
Contributor
kekrre
Posts: 91
Registered: ‎10-31-2012

Re: BankAmericard offer questions...

[ Edited ]

racer-x wrote:

So, I got an offer in the mail today for a BankAmericard Cash Rewards.

 

It has 0% interest for 15 months and then it goes to 14.99%

 

My question is, does a lower interest rate offer on a new credit card, indicate your approval chances?  I'm used to 19.99% rates. 

I really want/need a card with a higher limit than my $500 Cap One card.

 

...

 

Should I go for this card?  Seems to be a good card to have?


The standard offer for this card appears to be 0% for 12 months and 12.99%-22.99%. You're being offered the card with an extended 0% purchase deal and (apparently) one of the better interest rates (I would never carry a balance at 14.99%, btw). I think this implies that your credit profile matches something that may have a chance at getting approved. There's a specific terminology that is used on soft pull based preapprovals versus "invitations to apply". I'm guessing that means you have some shot (no guarantees) if you bring your utilization down to something reasonable for new applications. I wouldn't know how they react to collections (paid or otherwise), though.

 

Is this card good to have? Yes. If you have a BoA checking (the online one is completely free if you avoid using a CSR), you get an effective 3.3% back on gas and 2.2% back on groceries. That beats out the Amex BCP and (correct me if I'm wrong) is easier to get than the 5% PenFed cards (it'll probably be around longer too). On the other hand, it tops out at $1500 in total spendinb (between both the gas and grocery purchases) every quarter. If you spend all $1500 on groceries first, you won't get the 3% back on gas.

 

 

 

Also, your HSBC account... they "stopped use" of the account? What does this mean? Did they close it, or is it just "frozen" until you pay off your balance?

 

Also, you charged a motorcycle to your credit card???

 

[edit] I want to reaffirm that I am in no way telling you to go apply for this card right now

Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

Re: BankAmericard offer questions...

kekrre - I bought the motorcycle in May 2008.  HSBC had a promotion through Suzuki Finance .  1st payment $99, etc...

I honestly didn't realize that this 'plan' was  actually financing a motorcycle on a credit card. Suzuki sent me a card in the mail, that only had my account number on it.  You couldn't swipe it like a regular card. 

If I wanted to purchase motorcycle only related items, I had to go to a dealer.  The limit was $15K.  I quickly put it at $14K with 19.99%, I believe it's 17.99 now.

 

Since this financing was on a credit card, full coverage insurance was not required on the motorcycles.....It didn't take long for HSBC to realize that alot of these motorcycles accounts were being defaulted on because alot of young people buying these bikes, (sportbike variety) wouldn't carry full coverage insurance (simply too high for young people) and subsequently would crash and stop making these payments.

 

I received a letter from HSBC stating that these accounts would no longer be active.  Meaning that you couldn't charge anything on them any longer.  This was ACROSS the board for everyone, not just me.

 

They also stated that they would continue to show the $15k CL to the bureaus and show it as being active.  There is no negativity showing concerning this account.

 

Thanks for the good info btw.  No BoA accounts here.


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

AMEX GOLD,AMEX BCP-$10k,US Bank PLOC-$15K,CSP-$15k,Freedom-$6k,CapOneVisa-$15k,US Bank Visa-$10k, DCU Visa-$10k,Paypal MC-$15k,USAA MC-$6k,Lowes-$8600,CapOne Visa-$10k,Discover IT-$12.9K,BoA Visa-$10.1K Walmart -$4k,GECU Visa-$3500, US RLOC-$750

Take the FICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+