Bait and Switch NIGHTMARE!

[creditwherecreditisdue]

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@Anonymous wrote:

Hi..

 I just wanted to give a bit of an update and thank everyone and this forum for advise and the knowledge I have gained just from spending a few hours reading!

 I used the backdoor numbers for Cap One (three of them) and unfortunately got nowhere.

I was just this morning approved for a 0% transfer rate with Citi but it's a 3% fee for transfers.  I WANT to do it because in the long run it will ultimately cost me less than the evil Cap One, but I am so shell shocked I can't seem to make a decision.

 They did not approve me for enough to transfer the entire amount.. but 3/4 of it.

I also just got off the phone with BOA who I do all of my banking with and they basically offered the same situation.

I want to transfer part on one and the rest on the other. 

What do you think?

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This is fine. You'll be happier when it is done, so why not go ahead and do it?

Both fees are 3%. BofA's is uncapped, don't know if there is a cap on Citi's - if there is put the larger amount on the card with the capped fee to minimize what this costs you. Personally I would make one amount larger and the other smaller.

[GregB]

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@creditwherecreditisdue wrote:
What is the current APR on your Discover card. I have a five digit CL with them and my rate is 9.99%V. I consider myself very fortunate on both counts.

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Current APR is still 13.99%, unchanged since 12/2007. My EQ FICO at the time of apping Discover was 730-739.

RunUndefined,

Don't forget that if you open 2 new CC, that will be a FICO hit for 2 inq and 2 new accounts.

If the 0% is for a reasonable period, you might be best off overall by transferring what you can, paying the minimum on that account, and paying off CapOne and their bait and switch interest rate ASAP.

[Anonymous]

THANK YOU!

I am learning so much here. I am going to just live in here.

What a great bit of advise.  I understand and would not have even thought of capped vs not and how it might same me some cash.

Going to go ahead and do it.

I have more I want to learn so I am sure I will be posting more questions, probably in the general credit forum.

Thank you again!

[creditwherecreditisdue]

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@GregB wrote:

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@creditwherecreditisdue wrote:
What is the current APR on your Discover card. I have a five digit CL with them and my rate is 9.99%V. I consider myself very fortunate on both counts.

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Current APR is still 13.99%, unchanged since 12/2007. My EQ FICO at the time of apping Discover was 730-739.

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Ever think about asking Discover for an APR reduction? Even though the best current rate offered is 11.99% mine is lower and it has stayed lower for a long time. They put me on this rate, I did not have to ask for it. However, even though I rarely pay finance charges I am not shy about trying to keep my APR's low. That's why I have HSBC on a 6.99%F promo and Citi on 6.99%V, It can be done even in this less than fortunate climate.

[Anonymous]

Hi Greg,

Ok I didn't understand that.  I honestly don't actually get how "hits" effect my score yet, but I am learning.

If I am closing 3 old cards (because I believe the amount of credit available to us vs our income is an issue) and open 2 new ones will having one less card help?  One of the cards I am closing is a $25,000 limit.  It hurts to do it but I know it's more ego than actual need and we have not used it in over 2 years.

So much to learn!

[creditwherecreditisdue]

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@Anonymous wrote:

Hi Greg,

Ok I didn't understand that.  I honestly don't actually get how "hits" effect my score yet, but I am learning.

If I am closing 3 old cards (because I believe the amount of credit available to us vs our income is an issue) and open 2 new ones will having one less card help?  One of the cards I am closing is a $25,000 limit.  It hurts to do it but I know it's more ego than actual need and we have not used it in over 2 years.

So much to learn!

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If they already gave you the two new cards why on earth are you closing an open account with a $25K CL? In this economic climate $25K CL's are gold. Meanwhile you are taking INQ's, opening new accounts (which you had to do) and lowering your AAoA (Average Age of Accounts). What is it that this "Too Much Available Credit" is keeping you from getting? More available credit? Churning your TL's like this not a good way to maximize FICO. Do you have a goal? Is there something you are trying to accomplish? Stop - Ask Questions - Think it out - Then act. You'll get better results.

[GregB]

"Too much available credit" is old thinking as far as I can tell. There is some info that can be an issue with a mortgage but that seems out of date also.

In 1990, I bought a house with a $192,000 mortgage. The fact that I had more than that in total limits on CC was questioned during the app process but didn't affect the mortgage. That is the last time I heard that.

DO NOT close an old CC with a high limit. I could repeat CreditWhereCreditIsDues post word for word, but you get the idea.

[Anonymous]

HI!

Ok... thank you.

The reason I am saying "too much avail. credit" comes from a phone conversation with someone at our BOA. (a friend).  I was asking why my FICO is higher than my husbands when we both are in the same situation and apply for everything together (his is high 700's) and she said because he has more credit avail to him in ratio to his income than you.  He is primarty on many of the cards.

I am holding off closing the act. until I learn more. 

I can't begin to tell you all how appreciative I am of this advise!

[GregB]

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@creditwherecreditisdue wrote:

Ever think about asking Discover for an APR reduction? Even though the best current rate offered is 11.99% mine is lower and it has stayed lower for a long time. They put me on this rate, I did not have to ask for it. However, even though I rarely pay finance charges I am not shy about trying to keep my APR's low. That's why I have HSBC on a 6.99%F promo and Citi on 6.99%V, It can be done even in this less than fortunate climate.

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I'm stuck paying off debts on CC that were caused by a divorce. I'm using low interest BT to keep my average interest below 5% as I pay them off. I would never actually pay 13.99% interest even if it was being offset by something else at lower rates. When the promo period expired on the Discover, I was using it for household expenses and collecting reward dollars. I would always PIF it. I found that many items that I purchase were not included in the 1% rewards and SockDrawered it since I was getting dinged on FICO for "too many accounts with balances". I hadn't used it for 4 months so decided that I should use it once to ensure it is not closed due to inactivity. I just did one single charge for $6,000 against the $10,000 limit. I will PIF that. That might get me a CLI or other response. We will see.

[creditwherecreditisdue]

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@Anonymous wrote:

HI!

Ok... thank you.

The reason I am saying "too much avail. credit" comes from a phone conversation with someone at our BOA. (a friend).  I was asking why my FICO is higher than my husbands when we both are in the same situation and apply for everything together (his is high 700's) and she said because he has more credit avail to him in ratio to his income than you.  He is primarty on many of the cards.

I am holding off closing the act. until I learn more. 

I can't begin to tell you all how appreciative I am of this advise!

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Considering the fact that income is not a factor in FICO scoring the BofA person's comment is ill informed. Further, if your FICO scores are above 760 you are High Achievers and have nothing to worry about. You have put the ball in the end zone and have scored the touchdown. No need to worry about what to do next. Just continue to pay everything on time, every time and you will be fine!

I hope that while you apply together you are not app'ing for credit jointly. CC accounts should never be held in joint name. Very bad planning.