topic Re: 6.99% APR offer in Credit Cards

6.99% APR offer

Anonymous — Tue, 01 Apr 2008 22:58:32 GMT

I just received a pre-approval letter from RBS with 6.99% APR for purchases and BT forever as long as I don't miss the minimum payment. I used to have an account of $3,600 CL with RBS, and one year later I closed. I have credit scores +/- 750 (before paying off), and recently I paid off more than 5k of credit card balances. As a result, my UTIL is down to 7% from ~13%.

If I am not looking a house now, I would apply for this car right away. What do you think about this offer?

Re: 6.99% APR offer

Anonymous — Tue, 01 Apr 2008 23:02:26 GMT

The purchase APR is great, as long as it's not an intro rate. If that's a non-promo fixed rate, that's about as good as it gets.

For BTs, it's not that terrific. You can find 0% BT offers all over the place.

Re: 6.99% APR offer

Anonymous — Tue, 01 Apr 2008 23:07:20 GMT

That 6.99% is NOT an introductory rate. As long as I make on-time payments, I get that rate. Yeah, I am not thriled with 6.99% BT, but don't have much to transfer anyway. I agree that 6.99% APR would be hard to get, and that's why I am considering.

Re: 6.99% APR offer

unknown_entity — Tue, 01 Apr 2008 23:40:30 GMT

That's a good card to have. RBS is Prime-Time Bank. Good to just have an account with them boys. And you don't have to BT with it...6.99 is awesome if it is forever.

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 00:59:50 GMT

jsk wrote:
That 6.99% is NOT an introductory rate. As long as I make on-time payments, I get that rate. Yeah, I am not thriled with 6.99% BT, but don't have much to transfer anyway. I agree that 6.99% APR would be hard to get, and that's why I am considering.

If I'm reading this right, the only advantage to this card's BT is if you plan to take forever to pay off the little balance you have as most BT offers are only good for 6 months to a year. Does the 6.99% have anything to do with new transactions? If so, I'd gobble this card up.

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 02:57:36 GMT

Sorry to TJ, but this thread has me thinking...would it hurt your FICO more to have 80% util on on card and all other cards at 10%? Or would it be better to have, let's say, 45% util on two cards and the rest below 10 %? Hmmmm.....

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:00:24 GMT

Pj1369 wrote:
Sorry to TJ, but this thread has me thinking...would it hurt your FICO more to have 80% util on on card and all other cards at 10%? Or would it be better to have, let's say, 45% util on two cards and the rest below 10 %? Hmmmm.....

Yes, one card at 80% will hurt your FICO.

You are scored on overall utilization as well as individual utilization.

Also, don't forget that you need $0 on more than half your open accounts and at least one revolving account at 1-9% for max FICO points. "All other cards at 10%" is neither of those.

Message Edited by cheddar on 04-01-2008 11:00 PM

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 02:59:46 GMT

@Anonymous wrote:

@Anonymous wrote:
Sorry to TJ, but this thread has me thinking...would it hurt your FICO more to have 80% util on on card and all other cards at 10%? Or would it be better to have, let's say, 45% util on two cards and the rest below 10 %? Hmmmm.....

Yes, one card at 80% will hurt your FICO.

You are scored on overall utilization as well as individual utilization.

but, which scenario do you think would be better re: the indiv util perspective...seeing that overall util would stay the same?

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:01:15 GMT

Pj1369 wrote:

but, which scenario do you think would be better re: the indiv util perspective...seeing that overall util would stay the same?

45% on two is better than 80% on one.

Re: 6.99% APR offer

haulingthescoreup — Wed, 02 Apr 2008 11:18:04 GMT

I think you saw the results of the one-card-with-80% when you lost that gi-normous 60-80 points with the SL BT on to one card. But I do think that you can get away with a high balance on just one card, as long as it is not maxed out, and the others are PIF'd or negligible. However, this might be only applicable to certain situations, I dunno. I've just read enough anecdotal evidence that I think that there's something to it.

edited to say that the high util card shouldn't be maxed-out high

Message Edited by haulingthescoreup on 04-02-2008 04:18 AM

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:07:13 GMT

@haulingthescoreup wrote:
I think you saw the results of the one-card-with-80% when you lost that gi-normous 60-80 points with the SL BT on to one card. But I do think that you can get away with a high balance on just one card, as long as they others are PIF'd or negligible. However, this might be only applicable to certain situations, I dunno. I've just read enough anecdotal evidence that I think that there's something to it.

My sentiments exactly...hmmm...

Logic would tell you 45% on 2 would be better than 80% util on one...but my gut is telling me it's vice versa. Looking at the behavior aspect, ppl with multiple high util balances is probably a greater risk in the eyes of FICO, rather than someone with jsut one high util card....hmmm...

I'm thinking about splitting up the remainder of my USAA BT if it will help my FICO, with my new Citi card...but I'm beginning to re-think it...hmmm. It would turn one card at 65 % util into two cards at about 45% and 35% respctive util rates...again, hmmmm...

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:09:33 GMT

Pj1369 wrote:

Logic would tell you 45% on 2 would be better than 80% util on one...but my gut is telling me it's vice versa. Looking at the behavior aspect, ppl with multiple high util balances is probably a greater risk in the eyes of FICO, rather than someone with jsut one high util card....hmmm...

Interesting thought! It's not the conventional wisdom, but it is definitely a good point.

If you try it, make sure you let us know the results.

Re: 6.99% APR offer

haulingthescoreup — Wed, 02 Apr 2008 03:17:42 GMT

@Anonymous wrote:

If you try it, make sure you let us know the results.

We love guinea pigs, especially when they volunteer!

Seriously, though, for someone with nerves of steel, a decent amount of patience, and no other changes going on with their reports, it would be pretty cool for them to do a BT with 80% and then each month pay it down to 74%, then 69%, then 64%, and so on, and see where the score breaks occur.

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:22:53 GMT

haulingthescoreup wrote:

We love guinea pigs, especially when they volunteer!

Seriously, though, for someone with nerves of steel, a decent amount of patience, and no other changes going on with their reports, it would be pretty cool for them to do a BT with 80% and then each month pay it down to 74%, then 69%, then 64%, and so on, and see where the score breaks occur.

That would be great if someone would do that!

I may have something up my sleeves long those lines. Stay tuned and I'll let everyone know, but it will be a few weeks before I know if it will happen.

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:26:49 GMT

In terms of tracking, I've been doing that...I can crunch some numbers and post an update...of the breaks have so far...I started at 92% util on one card and I'm down to 80% percent in terms of what is being reported (probably close to 65-70% now)...now I need to figure out if I should continue with the slow crawl for the sake of knowledge or try the citi-split experiment to see where that takes me....hmmm...I'm torn.

Re: 6.99% APR offer

haulingthescoreup — Wed, 02 Apr 2008 03:35:46 GMT

@Anonymous wrote:
In terms of tracking, I've been doing that...I can crunch some numbers and post an update...of the breaks have so far...I started at 92% util on one card and I'm down to 80% percent in terms of what is being reported (probably close to 65-70% now)...now I need to figure out if I should continue with the slow crawl for the sake of knowledge or try the citi-split experiment to see where that takes me....hmmm...I'm torn.

See, this is my excuse for why I pull my scores so often. It's all for Science!

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:41:07 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
In terms of tracking, I've been doing that...I can crunch some numbers and post an update...of the breaks have so far...I started at 92% util on one card and I'm down to 80% percent in terms of what is being reported (probably close to 65-70% now)...now I need to figure out if I should continue with the slow crawl for the sake of knowledge or try the citi-split experiment to see where that takes me....hmmm...I'm torn.

See, this is my excuse for why I pull my scores so often. It's all for Science!

Uh yeah, me too (cough). It has nothing to do w/ my OCD, nope, nothin' at all!

I'm just coming off a 'twice in 4 days' bender - I'm blaming the coupon. Yup.

-P

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 03:44:17 GMT

never mind, my tracking data sucks due to recent CLIs and INQs...not all external variables remained constant...so it's hard to see the breaks the past two months due solely to the BT Balance being reducted...erhh...sorry!

Message Edited by Pj1369 on 04-01-2008 11:44 PM

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 05:12:32 GMT

I went ahead and split the BT balance between USAA and Citi - I look forward to sharing results at the end of the month. Stay tuned!

Re: 6.99% APR offer

Anonymous — Wed, 02 Apr 2008 05:42:28 GMT

Pj1369 wrote:
I went ahead and split the BT balance between USAA and Citi - I look forward to sharing results at the end of the month. Stay tuned!

I can't wait. This will be interesting.