topic Re: Chase Offers - My Chase Loan 🤔 in Credit Cards

Chase Offers - My Chase Loan 🤔

Hut1 — Sat, 18 Feb 2023 15:50:56 GMT

Riding passenger on a road trip and decided to look around my chase app. Under my offers, I saw I was preapproved for a "My Chase Loan".

From what I'm reading, they'll allow me to borrow any amount (min of $500, loan length 6-24 mo) of my available credit on my Chase Sapphire Preferred and they'll treat it as a personal loan with a different APR. It's not a cash advance and I can still make purchases with my card which will use the card's reg APR. There's no credit check and no new account that would appear on credit report. The amount will just get added to my card's balance with its own APR and the payment amount will be added to my minimum due amount.

I literally cannot find a downside to this. Anyone done this before?

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sat, 18 Feb 2023 16:37:36 GMT

Chase has been offering those for years now, at least three that I can remember.

Upside, if you need money, no new account.

Downside, significant APR unless one is planning on paying it off in a very short period of time with short loan term, or borrowing low amount.

Re: Chase Offers - My Chase Loan 🤔

SouthJamaica — Sat, 18 Feb 2023 16:49:02 GMT

@Hut1 wrote:
Riding passenger on a road trip and decided to look around my chase app. Under my offers, I saw I was preapproved for a "My Chase Loan".

From what I'm reading, they'll allow me to borrow any amount (min of $500, loan length 6-24 mo) of my available credit on my Chase Sapphire Preferred and they'll treat it as a personal loan with a different APR. It's not a cash advance and I can still make purchases with my card which will use the card's reg APR. There's no credit check and no new account that would appear on credit report. The amount will just get added to my card's balance with its own APR and the payment amount will be added to my minimum due amount.

I literally cannot find a downside to this. Anyone done this before?

Would having such a loan cause you to lose your grace period on purchases?

Would the loan balance increase your utilization on the card for credit reporting purposes?

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sat, 18 Feb 2023 17:04:05 GMT

@SouthJamaica wrote:
@Hut1 wrote:
Riding passenger on a road trip and decided to look around my chase app. Under my offers, I saw I was preapproved for a "My Chase Loan".

From what I'm reading, they'll allow me to borrow any amount (min of $500, loan length 6-24 mo) of my available credit on my Chase Sapphire Preferred and they'll treat it as a personal loan with a different APR. It's not a cash advance and I can still make purchases with my card which will use the card's reg APR. There's no credit check and no new account that would appear on credit report. The amount will just get added to my card's balance with its own APR and the payment amount will be added to my minimum due amount.

I literally cannot find a downside to this. Anyone done this before?

Would having such a loan cause you to lose your grace period on purchases?

Would the loan balance increase your utilization on the card for credit reporting purposes?

No, loan doesn't cause loss of grace period as long as "Interest Saving Balance" is elected when making payment.

Yes, loan amount doesn't appear as "loan", it simply adds to credit card utilization.

Re: Chase Offers - My Chase Loan 🤔

NoMoreE46 — Sat, 18 Feb 2023 17:39:02 GMT

That particular interest rate range is not bad at all for today especially when no new pulls or inquiries are involved.

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sat, 18 Feb 2023 17:37:43 GMT

@NoMoreE46 wrote:
That particular interest rate range is not bad at all.

No, it's not. It's horrible

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sat, 18 Feb 2023 18:30:06 GMT

@SouthJamaica wrote:
@Hut1 wrote:
Riding passenger on a road trip and decided to look around my chase app. Under my offers, I saw I was preapproved for a "My Chase Loan".

From what I'm reading, they'll allow me to borrow any amount (min of $500, loan length 6-24 mo) of my available credit on my Chase Sapphire Preferred and they'll treat it as a personal loan with a different APR. It's not a cash advance and I can still make purchases with my card which will use the card's reg APR. There's no credit check and no new account that would appear on credit report. The amount will just get added to my card's balance with its own APR and the payment amount will be added to my minimum due amount.

I literally cannot find a downside to this. Anyone done this before?

Would having such a loan cause you to lose your grace period on purchases?

Would the loan balance increase your utilization on the card for credit reporting purposes?

1. No.

2. Yes.

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sat, 18 Feb 2023 18:37:02 GMT

@NoMoreE46 wrote:
That particular interest rate range is not bad at all for today especially when no new pulls or inquiries are involved.

I thought so, too, but @Remedios is making me second guess life. 😅 Even NFCU's lowest rates are 7.49%.

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sat, 18 Feb 2023 18:57:35 GMT

For anyone curious how the interest range is spread

Re: Chase Offers - My Chase Loan 🤔

SouthJamaica — Sat, 18 Feb 2023 19:12:25 GMT

@Hut1 wrote:
For anyone curious how the interest range is spread

In today's climate those are good rates.

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sat, 18 Feb 2023 19:33:24 GMT

@SouthJamaica wrote:
@Hut1 wrote:
For anyone curious how the interest range is spread

In today's climate those are good rates.

Nope. That's close to $1000.00 in interest over only two years.

BT at 3% fee would be $270.00, so even if two BTs were needed, it would still cost less.

You've even stated how horrible 5% fee on BTs is, but here 9.99% is a good rate. It makes no sense to advocate one thing for yourself and something completely different for another person, especially since we don't know if this "loan' is needed or just something that looked less insidious tham what it really is (other than very short term).

I can see this as an option for someone who's struggling with utilization and paying 20+%, but not for "free cash"

So, OP would need to clarify purpose in order to determine if this is a good option or not. Without clarification and taken on face value, not a good idea.

@Hut1 if you could use some cash, chase allows BT to checking. You'd have to stop using your card, but it would be less costly alternative.

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sat, 18 Feb 2023 19:42:39 GMT

@Remedios wrote:
@SouthJamaica wrote:
@Hut1 wrote:
For anyone curious how the interest range is spread

In today's climate those are good rates.

So, OP would need to clarify purpose in order to determine if this is a good option or not. Without clarification and taken on face value, not a good idea.

@Hut1 if you could use some cash, chase allows BT to checking. You'd have to stop using your card, but it would be less costly alternative.

@Remedios I have a $9K balance on my Navy card @ 17.24%. I can comfortably put $1K/mo towards it.

Re: Chase Offers - My Chase Loan 🤔

SeaProbe — Sat, 18 Feb 2023 19:44:25 GMT

In today's climate those are good rates.
Nope. That's close to $1000.00 in interest over only two years.
BT at 3% fee would be $270.00, so even if two BTs were needed, it would still cost less.
You've even stated how horrible 5% fee on BTs is, but here 9.99% is a good rate. It makes no sense to advocate one thing for yourself and something completely different for another person, especially since we don't know if this "loan' is needed or just something that looked less insidious tham what it really is (other than very short term).
I can see this as an option for someone who's struggling with utilization and paying 20+%, but not for "free cash"
So, OP would need to clarify purpose in order to determine if this is a good option or not. Without clarification and taken on face value, not a good idea.

@Hut1 if you could use some cash, chase allows BT to checking. You'd have to stop using your card, but it would be less costly alternative.

With the current prime rate of 7.75%, that is a fair margin above prime (0.24 to 2.24) for an unsecured loan. In fact, those are lower than Schwab's current margin rates and those are secured loans…

That said, why pay the interest at all unless you really need the cash now?

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sat, 18 Feb 2023 19:53:41 GMT

@Hut1 wrote:
@Remedios wrote:
@SouthJamaica wrote:
@Hut1 wrote:
For anyone curious how the interest range is spread

In today's climate those are good rates.

So, OP would need to clarify purpose in order to determine if this is a good option or not. Without clarification and taken on face value, not a good idea.

@Hut1 if you could use some cash, chase allows BT to checking. You'd have to stop using your card, but it would be less costly alternative.

@Remedios I have a $9K balance on my Navy card @ 17.24%. I can comfortably put $1K/mo towards it.

Is CSP your only recent account?

While 9.99% is better than 17%, card with lengthy BT (18 months) would save you money.

In any case, if you're already paying interest, loan may not be a bad idea, but I'd look for good BT card or two.

The only possible issue I see with that (unless perfectly timed) is that increase in utilization would prevent you temporarily from being approved.

Also, if you aren't carrying balance on your AOD card, you could put all the spend on it and pay them interest while using that money (from normal spend) to pay off NFCU untill you decide what to do.

Interest on AOD would be less than what Chase is offering you, so putting all your spend on it might work as bandaid.

Just shooting some ideas to save you money but if you're okay with Chase's rate, take it, no need to struggle if you have options.

Re: Chase Offers - My Chase Loan 🤔

TheRedHat — Sat, 18 Feb 2023 23:46:56 GMT

@Remedios wrote:
@NoMoreE46 wrote:
That particular interest rate range is not bad at all.

No, it's not. It's horrible

Really? A max of 10% interest over a 2-year period is considered "horrible"?

Re: Chase Offers - My Chase Loan 🤔

Kforce — Sat, 18 Feb 2023 23:58:47 GMT

Some numbers from your numbers:

9k @ 8.5% with $1,000/mo payments = $333 in interest & 10 months

9k @ 17.25% with $1,000/mo payments = 708 in interest & 10 months

9k @ 0% for 12 months = 0 in interest, $750/month for 12 months

9k @ 0% with $1000/mo = 0 in interest and 9 months

9k @ 0 with 3% fee = $773/month and fee of $270 & 12 months

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sun, 19 Feb 2023 01:23:54 GMT

@Remedios wrote:
@Hut1 wrote:
@Remedios wrote:
@SouthJamaica wrote:
@Hut1 wrote:
For anyone curious how the interest range is spread

In today's climate those are good rates.

So, OP would need to clarify purpose in order to determine if this is a good option or not. Without clarification and taken on face value, not a good idea.

@Hut1 if you could use some cash, chase allows BT to checking. You'd have to stop using your card, but it would be less costly alternative.

@Remedios I have a $9K balance on my Navy card @ 17.24%. I can comfortably put $1K/mo towards it.

Is CSP your only recent account?
While 9.99% is better than 17%, card with lengthy BT (18 months) would save you money.
In any case, if you're already paying interest, loan may not be a bad idea, but I'd look for good BT card or two.

The only possible issue I see with that (unless perfectly timed) is that increase in utilization would prevent you temporarily from being approved.
Also, if you aren't carrying balance on your AOD card, you could put all the spend on it and pay them interest while using that money (from normal spend) to pay off NFCU untill you decide what to do.
Interest on AOD would be less than what Chase is offering you, so putting all your spend on it might work as bandaid.

Just shooting some ideas to save you money but if you're okay with Chase's rate, take it, no need to struggle if you have options.

@Remedios Thank you. I really appreciate your suggestions.

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sun, 19 Feb 2023 01:25:12 GMT

@Kforce wrote:
Some numbers from your numbers:

9k @ 8.5% with $1,000/mo payments = $333 in interest & 10 months
9k @ 17.25% with $1,000/mo payments = 708 in interest & 10 months
9k @ 0% for 12 months = 0 in interest, $750/month for 12 months
9k @ 0% with $1000/mo = 0 in interest and 9 months
9k @ 0 with 3% fee = $773/month and fee of $270 & 12 months

@Kforce Cheeseless crust, this is exactly what my little brain needed to see. You are a saint!

Re: Chase Offers - My Chase Loan 🤔

Hut1 — Sun, 19 Feb 2023 03:11:25 GMT

In case someone comes and looks at this thread later down the road, after speaking with Remedios and seeing Kforce's number crunch, it would be more cost effective to utilize a balance transfer on one of my current cards.

I verified both Capital One and PenFed are offering 0% for 12 mos w/ 3% fee. (Also, while I was looking around AmEx to see if they offer a BT option, I realized I hadn't requested a CLI for my AmEx in a while. It was approved. ) https://ficoforums.myfico.com/t5/Credit-Card-Approvals/AmEx-CLI-17-900-gt-23-600/td-p/6646690

So, take away would be to have @Kforce crunch numbers for you and @Remedios talk some sense into you.

Re: Chase Offers - My Chase Loan 🤔

Remedios — Sun, 19 Feb 2023 02:57:25 GMT

@Hut1 wrote:
In case someone comes and looks at this thread later down the road, after speaking with Remedios and seeing Kforce's number crunch, it would be more cost effective to utilize a balance transfer on one of my current cards.

I verified both Capital One and PenFed are offering 0% for 12 mos w/ 3% fee. (Also, while I was looking around AmEx to see if they offer a BT option, I realized I hadn't requested a CLI for my AmEx in a while. It was approved. )

So, take away would be to have @Kforce crunch numbers for you and @Remedios talk some sense into you.

That's great, glad you had those offers available. Also, congrats on your increase