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?
@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?
@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.
@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.
@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%.
For anyone curious how the interest range is spread
@Hut1 wrote:For anyone curious how the interest range is spread
In today's climate those are good rates.