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CC regrets

tag
Established Member

Re: CC regrets

I think the store cards would be my regret.  I mean those interest rates have always been high!!  I have Macy's, JCPenney's, but I will say I do use them often.  I just hate the interest rate! 
Message 21 of 82
Anonymous
Not applicable

Re: CC regrets


@bigtim wrote:

@creditwherecreditisdue wrote:

@bigtim wrote:

I think if you apply for a credit card, or any credit for that matter, you should be given the option to ACCEPT or DECLINE the account.


This would be most reasonable. Reasonable revolving credit... that ought be an oxymoron!


 

Yeah, I mean seriously... Say I'm on Circuit City and want to buy this surround sound for say $2000 and they are offering 0% interest for 6 months if approved. Now I am only interested in this purchase so if I apply and they only give me a 500 CL, and can't buy this item anyway yet I am now stuck with this account. You should have the option to decline this offer of credit and the tradeline that comes with it.


I couldnt agree more.. I apped for a citicard because I wanted to BT 10k.. they approve me for 2k.. it's worthless.. If I use 2k I jack up my util and probably piss them off.. and the terms for the BT they offered on the card no interest 12 months wasn't what I got.. I got 6 months.. You shouldn't be forced to accept what they offer.. INQ should be the only hit you take.....


Message 22 of 82
creditwherecreditisdue
Senior Contributor

Re: CC regrets


@dee wrote:
I think the store cards would be my regret.  I mean those interest rates have always been high!!  I have Macy's, JCPenney's, but I will say I do use them often.  I just hate the interest rate! 

So use your card and PIF!

 

One thing that very few ever notice is that many of these cards have a minimum finance charge (like the Macy's store account). If you carry small balances on those accounts the actual APR is stunning. For instance, I am carrying a very small balance on my Direct Merchants Bank MC (HSBC) to humor them since they saw fit to give me a 6.99%F promotional APR. The balance was $45.90 and the computed interest at the 6.99% APR was $0.46. But, the minimum finance charge is $1.00, more than double the $0.46, making the actual APR closer to 15%. Best to either PIF or pay off these accounts quickly and in big chunks if you can't.

Message 23 of 82
creditwherecreditisdue
Senior Contributor

Re: CC regrets

Folks tend to complain about the PenFed application process, but there is one thing they have exactly correct. When you app you let them know what kind of CL you want for your CC or loan. Depending on your status it may or may not cost you a hard INQ. If you do not qualify for the amount you have requested they will either decline you or counter offer. You can then recon if you like or accept the counter offer if they made one. You will only end up with a new account if you are agreeable to the exact terms. You will never get stuck with a $500 account when you were hoping for $10K.
Message 24 of 82
Established Member

Re: CC regrets

Actually, my biggest regret is HOME DEPOT!!  I forgot about that one.  We use it like crazy!!
Message 25 of 82
ma_fico
Regular Contributor

Re: CC regrets


@creditwherecreditisdue wrote:

@dee wrote:
I think the store cards would be my regret.  I mean those interest rates have always been high!!  I have Macy's, JCPenney's, but I will say I do use them often.  I just hate the interest rate! 

So use your card and PIF!

 

One thing that very few ever notice is that many of these cards have a minimum finance charge (like the Macy's store account). If you carry small balances on those accounts the actual APR is stunning. For instance, I am carrying a very small balance on my Direct Merchants Bank MC (HSBC) to humor them since they saw fit to give me a 6.99%F promotional APR. The balance was $45.90 and the computed interest at the 6.99% APR was $0.46. But, the minimum finance charge is $1.00, more than double the $0.46, making the actual APR closer to 15%. Best to either PIF or pay off these accounts quickly and in big chunks if you can't.


One thing that's great about Kohl's is that if you pay a third of your balance due (and your balance is over $50) - they waive the interest for that month, IF you live in certain states.  I've never tried it, always PIF, but think it's a very cool concept.

 

From the cardholder agreement:

 

'"Interest Free" (no Finance Charge) Option: If you reside in CT, DC, DE, MD, NJ, NY, PA, TN, VA, or WI you will have the option of avoiding a Finance Charge in any billing period if you pay one-third of the new balance as set forth on your Statement, but not less than $50. If your New Balance is $50 or less, you must pay the entire New Balance to avoid Finance Charges in the following month. If you move from a state where the "Interest Free" option is being provided to a state where this feature is not available, you will no longer be able to exercise this option. "'

 

Plus - the coupons are fab.  Got a 30%-er for the last sale - good all week, reusable, both in store and online, on everything.

Message 26 of 82
Anonymous
Not applicable

Re: CC regrets

I think a Minimum Finance charge helps them defray the cost iof sending you a bill each month.

 

33 Cents just in postage....sure do add up 

Message 27 of 82
creditwherecreditisdue
Senior Contributor

Re: CC regrets


@Anonymous wrote:

I think a Minimum Finance charge helps them defray the cost iof sending you a bill each month.

 

33 Cents just in postage....sure do add up 


You pay the minimum finance charge even if you are on ebilling. All-in-all minimum finance charges are an annoyance, but a very minor one.

Message 28 of 82
Anonymous
Not applicable

Re: CC regrets

Okay, I know this is going to come under fire, but this just made my "regret list."

 

     PenFed

 

PenFed just went in the sock drawer except for an occassional exercise of $20 or less.  I know many people covet this card, and I'll keep it for the $10k CL and utilization, but I just don't like PenFed Customer Service.  I consistently get cool to luke warm reception, CSR's who seem annoyed by my call and service which is far below other CU's I now deal with. 

 

I'll eat mediocre food for great service.  But I don't eat the best food where the service is subpar.  And right now I have far better experiences with NFCU, Alliant and now potentially Addison Avenue.

 

My apologies in advance to the PenFed advocates.  No need to argue their merits, I am speaking only of my personal experience in CS.  I am not attempting to detract from any product they have or bullet point benefits of PenFed.

 

And, I may feel differently in 6 months or a year....this may be new member issue which will smooth over later.

 

 

Message 29 of 82
creditwherecreditisdue
Senior Contributor

Re: CC regrets

No comment.
Message 30 of 82
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