I have 12 CCs so apparently everyone wants to offer me a personal loan rather than a credit card. Citibank just sent me an offer for a loan two days ago.
I have 23 credit cards and I got the Penfed offer for the second time in a short time as well. I don't know who would go for this offer other than people who don't intend to pay them back. 12.9 percent interest? Why would anyone do that with the constant zero percent for 12 months or 18 months offers out there?
My APR offer is only 9.99% but it's still nearly $7,000 of interest on a $25,000 loan for 5 years.
I'm not so sure anyone who would take a deal like this is qualified to be a member of a highly regarded credit union. People who make decisions like this generally have way lower credit scores because they don't understand numbers.
It does feel good to have banks fighting for your business though.
One thing that these things could be useful for would be to get an installment loan on your CR. Let's say you have $25K lying around, you can take them up on that offer, pay off most of the loan right away and stretch the rest over the term of the loan (if the terms allow). That way you get the score boost from an installment loan (assuming you don't already have one) without HP. Not bad now that Alliant route is shut down.
I just found a picture of my first offer. Maybe I should have clarified I have been a member of PenFed for 9 months.
First loan offer must have came back in October.