“Why do you want a credit card with us”

[practical1]

@disdreamin 

I didn't say not to do it.... just not to tell a card issuer that you plan on doing it.  Big difference! 

My plan is to push for a really high limit on one of my rewards cards, use it towards  a new car and take the points for a little vacay as well... if I can pull it off.  No harm in trying.  You're right about being able to pay it off right away.  Even with a decent card interest rate, the finance charges would be a steep multiple of an actual auto loan rate from a good credit union (of which I have cultivated relationships with several).

[disdreamin]

---

@practical1 wrote:

@disdreamin 

I didn't say not to do it.... just not to tell a card issuer that you plan on doing it.  Big difference! 

My plan is to push for a really high limit on one of my rewards cards, use it towards  a new car and take the points for a little vacay as well... if I can pull it off.  No harm in trying.  You're right about being able to pay it off right away.  Even with a decent card interest rate, the finance charges would be a steep multiple of an actual auto loan rate from a good credit union (of which I have cultivated relationships with several).

---

Ha, truth. As I mentioned, the dealership I went through was unwilling to put all $30k+ on my AmEx but did allow me to do a small-ish downpayment with it. I get why, but I figured it was worth at least trying to put it on the card. You are so right about loan interest rates, and when I've used loans for vehicles recently it's been purely because the rates were incentivized (0% to 0.9%).

Back to OP, for what it's worth I've never had the "why do you want a cc with us" question come up when applying, even at my small local CU. I'm not sure I would have a "good" answer had they asked, unless they would consider "because I want it" a good reason. You gave an honest answer and that's all you can do. If they decide not to extend credit, stick with what you have for now and work on paying down the balances. Your score should improve, and hopefully you will be in a much better place for a good auto rate in the near future.

[Royalbacon]

The rewards are really appealing to me and a lot better then the cards I currently have (Even if that's not true)

The interest rate is way better, and while i'm not planning on carrying a balance, it would be good to have if I ever absolutely need too.

Because your a local credit union and want to build a bigger relationship with you guys because you're small & local

Those all would of been good things for the OP to say in their situation. 

Don't ever say you want the card to lower your overall utilization and that you're planning on just going to sock drawer the card (I speak from experience from back in my younger days  )

[jcooks]

My answer to those type of questions are geared towards expanding the relationship, explain that you are also looking to get other products from that credit union.  If I were truthful in those types of questions, I would be telling all banks "I'm in it solely for the SUB"

[Royalbacon]

Years back when I got approved for an Amex and when I called to activate it transferred me to a live rep and she asked "Why did you decide to apply for a card from us?" It definitely caught me off guard

"Uhhhhh it looked like a good card I guess so I applied and ended up getting approved"

[doctormyers]

Yeah I definitely mentioned expanding my relationship with the CU. She said they'd give me a mortgage and auto loan if I applied but not credit card. Will be waiting 6-12 months.