09-25-2009 12:52 PM - edited 09-25-2009 12:57 PM
DW just got a "Convenience Check" CLI Offer. They sent her a check offering to raise her CL by the amount of the check she wrote, up to $1500. Has a $3% fee and standard APR applies.
Essentially this equates to a $45 fee to CLI $1500 (has $2000 CL now) giving her a new CL of $3500.
If she then PIF the balance a day or two after the balance and new CL posts then she would only pay a few days APR accrual as well, which would be just a few dollars.
09-25-2009 11:04 PM
hrmm, pay to play cli screams- subprime offering...
if they also offer cli w/o fees on this product, why not pass on the 'pay to play' version unless the cli has more utility than the cash in hand.
09-26-2009 06:25 AM
In my opinion...Only pay for a CLI if you need it for utility reasons long term. If you are not seeking credit now, then temporary high util won't hurt you.
CLIs come for free on other cards. Don't pay for a high limit just to have it.
09-26-2009 06:26 PM
I received this same offer last year. I accepted. They then credit limit decreased me earlier this year when the banks were panicking, although my history has been flawless with them. Thanks Juniper.
I really have nothing good to say about Juniper. The APR on this card is also ridiculous. This is another account I keep only because I've had it for a while. It stays in the sock drawer now.
09-26-2009 07:13 PM
It's not actually a fee for CLI. It is the normal 3% BT fee (many banks now charging 4-5%).
The APR is 17.24%, which is why she would immediatley PIF the balance once the check posted and the CLI locked in.
For whatever reason, they want her to take a BT or cash in order to get it.
09-26-2009 08:34 PM
Presumably in hope that they would make the finance charges when she did not immediately repay the advance. And if she did immediately repay it they still get the 3%. They are well covered and make money one way or the other.
This is so subprime.