Approved for a trap?

[Anonymous]

Laptop broke and have been sharing my girl friends laptop since july for school. I decided to apply for Barclays Apple Card and got approved for $2.5k, then reconned right after for $4k. I took advantage of Apple's 24 month, 0 % financing. I've been hearing that Barclays is famous for Credit Limit Decreasing, so i'm wondering what I should do?

1) Pay off the card then cancel?

2) How do I prevent from being Credit limit decreasing?

3) Will I be decreased? (Ive been approved for Chase Freedom Unlimited, AMEX Plat Charge, Amex Plat Delta all in the same month)

[Anonymous]

There are probably millions of Barclays customers who have never been CLD’d but you never hear those stories.

Use it. Pay more than the minimums. They don’t like folks getting a lot of new accounts but that card is pretty useless except for one purpose so you may not even use it again for years.

Don’t sweat it.

[HeavenOhio]

Divide the cost of your purchase by 23, then pay equal amounts each month. That way, you'd be using the payment system as designed, and there should be no reason for Barclays to freak. The only reason I suggest 23 payments instead of 24 is that you'd be staying safely away from the date that deferred interest would kick in.

[MrDisco99]

I have a pending app for the Apple card. If I get it I plan to make my purchase, pay it down at my own pace, not use the card for anything else, and when it's paid off transfer the credit to my other cards or convert the card to something else.

[Dalmus]

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@MrDisco99 wrote:
I have a pending app for the Apple card. If I get it I plan to make my purchase, pay it down at my own pace, not use the card for anything else, and when it's paid off transfer the credit to my other cards or convert the card to something else.

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 A lot of the AA stories here seem to link to two main events:  Lots of new accounts in a short time, and paying off balances "too quickly."

 I think as long as you aren't on an app spree and you don't pay it off in three payments, you'll be fine (as will the OP).

[HeavenOhio]

I think the "too quickly" AAs are generally on balance transfers.

[DaveInAZ]

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@HeavenOhio wrote:

I think the "too quickly" AAs are generally on balance transfers.

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Why would that be??? They make their $$$ on the BT fee, the longer you take to pay the BT the longer they don't make any money on the 0% interest. Maybe that's why Barclays likes me so much - I've done 2 BTs on 2 different cards and carefully planned the payments so the BT was paid in full the last month of the 0%. Instead of any AAs I've received thousands in auto CLIs. If paying down a BT makes Barclays unhappy, don't worrry Barclays, I'll never do that.

[Anonymous]

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@DaveInAZ wrote:

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Why would that be??? They make their $$$ on the BT fee, the longer you take to pay the BT the longer they don't make any money on the 0% interest. 

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Well, it's feasible that they MIGHT make money on bundling credit 'assets' to investors and include a pool of 0% BT that are more likely to not pay off in time.  Investors might be willing to buy up a nice collateral class of debts where they miss out on 12 months of interest with an expectation of the person getting defrayed interest accruing when they don't PIF in time...

ABS (Asset-Backed Securities) frequently involve credit card debts, not mortgages.  

[HeavenOhio]

It doesn't make sense. We've seen reports here of balance transfers being paid both too slowly and too quickly. I don't understand too quickly except possibly to raise the question of why the BT was done in the first place.

In the case of a deferred interest transaction, the only thing I'd worry about is paying enough to demonstrate that you intend to pay off the purchase. Dividing the total purchase into equal installments would accomplish that. I'd submit that if you wanted to pay faster, that's fine too.

[Anonymous]

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@HeavenOhio wrote:

It doesn't make sense. We've seen reports here of balance transfers being paid both too slowly and too quickly. I don't understand too quickly except possibly to raise the question of why the BT was done in the first place.

In the case of a deferred interest transaction, the only thing I'd worry about is paying enough to demonstrate that you intend to pay off the purchase. Dividing the total purchase into equal installments would accomplish that. I'd submit that if you wanted to pay faster, that's fine too.

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That makes a lot of sense HeavenOhio