cancel
Showing results for 
Search instead for 
Did you mean: 

Is Blispay too good to be true????

irunfromcredit
Frequent Contributor

Re: Is Blispay too good to be true????


@longtimelurker wrote:

They have to make money somewhere, and they seem to have done a good job preventing that for now!   Perhaps the expectation is that people won't pay off the 0% promos in time, and maybe that's the reason it is so easy to set them up, people might overspend and have to pay interest.    Or there will be a nerf at some point, reducing the availability of the 0% promos.

 

Or perhaps they have found the secret!


I would imagine there would be a good amount of people who will not pay off the promos in time.  Isn't that how other credit cards make their money when they offer that kind of promotion?

 

Whether this card lasts or not, i am going to take full advantage of the benefits for now.  I am really only using it for purchases that would normally pay over time but would have to pay some sort of interest.  For instance, the purchase I currently made was for my car insurance. I usually make 4 payments, over 6 months, but pay some sort of fee. This way I can still make the 4 payment but without the additional fees!  win/win for me.  LOL

Scores 8/25/2017~ TU: 753 / EXP: 742 / EQ: 726
Goal: 770's or higher by end of 2017
Message 11 of 166
longtimelurker
Mega Contributor

Re: Is Blispay too good to be true????


@irunfromcredit wrote:

I would imagine there would be a good amount of people who will not pay off the promos in time.  Isn't that how other credit cards make their money when they offer that kind of promotion?

 

Whether this card lasts or not, i am going to take full advantage of the benefits for now.  I am really only using it for purchases that would normally pay over time but would have to pay some sort of interest.  For instance, the purchase I currently made was for my car insurance. I usually make 4 payments, over 6 months, but pay some sort of fee. This way I can still make the 4 payment but without the additional fees!  win/win for me.  LOL


Yes, in such cases it makes sense to get the benefit now, regardless of whether the product changes in the future.  For me, it's not so compelling.   But if I didn't have a DC and Fid Visa already, this would be my first choice

Message 12 of 166
galahad15
Valued Contributor

Re: Is Blispay too good to be true????

I was approved with a SL of $5k, and have nothing but a positive experience so far with Blispay, I am quite happy with the card  Smiley Happy  *crosses fingers that no nerfs will happen and that the card benefit structure remains the same, or worst case scenario, that a potential nerf doesn't happen for a long time*

Message 13 of 166
wacdenney
Valued Contributor

Re: Is Blispay too good to be true????


@BrutalBodyShots wrote:

Glad to hear all of this positive feedback on Blispay as I'm strongly considering apping for it based on everything I've read on this site. 

 

The only thing holding me back is me worrying about the credit limit I'm given.  As I understand it, your SL is what it is as there is no opportunity for a recon and/or CLI that anyone knows of at this point.  If I apply and end up with a $3k-$4k limit it would be quite a letdown. 


The difference here is that it's so far not reporting similarly to PayPal Credit.  So there is less need for a larger line because it has no effect on utilization and you can actually use 100% of the line you're given.  Assuming a person is keeping their utilization below 10% then a 5k Blispay limit is equivilent to a 50k limit on another card.

Message 14 of 166
wacdenney
Valued Contributor

Re: Is Blispay too good to be true????


@kdm31091 wrote:

Historically, most 2% cards have not lasted that long, with the exception of Fidelity (who readily admits the card is a loss but they keep it to draw people in to invest).

 

That plus the financing deal means that it will likely not last very long, but how long "very long" is remains to be seen. Could last years. Could last a month. I just don't see how they will be able to reap substantial enough profit to keep it going, especially with no other products in the portfolio. Citi can possibly tolerate losses on Double Cash because they have many other cards in the lineup, etc.


Blispay really doesn't need to maintain the same kind of profit margin as Citi.  Blispay doesn't have stock holders to worry about or dividends to pay or any of that stuff.  As long as they can pay their employees and service whatever debt they have then everything else is icing on the cake.  There's not nearly the overhead or preassure on Blispay as there is on a publicly traded company like Citi.

Message 15 of 166
longtimelurker
Mega Contributor

Re: Is Blispay too good to be true????


@wacdenney wrote:

@kdm31091 wrote:

Historically, most 2% cards have not lasted that long, with the exception of Fidelity (who readily admits the card is a loss but they keep it to draw people in to invest).

 

That plus the financing deal means that it will likely not last very long, but how long "very long" is remains to be seen. Could last years. Could last a month. I just don't see how they will be able to reap substantial enough profit to keep it going, especially with no other products in the portfolio. Citi can possibly tolerate losses on Double Cash because they have many other cards in the lineup, etc.


Blispay really doesn't need to maintain the same kind of profit margin as Citi.  Blispay doesn't have stock holders to worry about or dividends to pay or any of that stuff.  As long as they can pay their employees and service whatever debt they have then everything else is icing on the cake.  There's not nearly the overhead or preassure on Blispay as there is on a publicly traded company like Citi.


True, but they still need to make a profit, and unless something very special is going on, 2% seems to be a lot to make out of just swipe fees (since the issuer only gets part of them anyway)

Message 16 of 166
wacdenney
Valued Contributor

Re: Is Blispay too good to be true????


@galahad15 wrote:

I was approved with a SL of $5k, and have nothing but a positive experience so far with Blispay, I am quite happy with the card  Smiley Happy  *crosses fingers that no nerfs will happen and that the card benefit structure remains the same, or worst case scenario, that a potential nerf doesn't happen for a long time*


I think it's bound to nerf at some point.  Seems to me like they are a startup and simply trying to gain market share at this point.  They need a customer base in place to grow and move forward and it's excellent strategy to launch with something exceptional.  If they had launched with a standard run of the mill 1.5% card then nobody would be talking about them and they wouldn't be growing.

 

I could be wrong, but I kindof doubt the long term strategy is to maintain this product indefinitely.

Message 17 of 166
wacdenney
Valued Contributor

Re: Is Blispay too good to be true????


@longtimelurker wrote:

@wacdenney wrote:

@kdm31091 wrote:

Historically, most 2% cards have not lasted that long, with the exception of Fidelity (who readily admits the card is a loss but they keep it to draw people in to invest).

 

That plus the financing deal means that it will likely not last very long, but how long "very long" is remains to be seen. Could last years. Could last a month. I just don't see how they will be able to reap substantial enough profit to keep it going, especially with no other products in the portfolio. Citi can possibly tolerate losses on Double Cash because they have many other cards in the lineup, etc.


Blispay really doesn't need to maintain the same kind of profit margin as Citi.  Blispay doesn't have stock holders to worry about or dividends to pay or any of that stuff.  As long as they can pay their employees and service whatever debt they have then everything else is icing on the cake.  There's not nearly the overhead or preassure on Blispay as there is on a publicly traded company like Citi.


True, but they still need to make a profit, and unless something very special is going on, 2% seems to be a lot to make out of just swipe fees (since the issuer only gets part of them anyway)


Right, but they also can't make a profit in the long term without a customer base. Launching with something less profitable to get their name out there is a solid strategy for an upstart in a crowded and competative market.

 

This also ties back into the fact that the line so far isn't reporting.  If I have to float a smaller balance that I don't want to bother with transfering then I float it on Blispay because it doesn't report.  I think there are others that would also be likely to place something that they needed to float for a month or two on the card due to this.  I had a total of around $300 related to repairing my wife's car and multiple trips to the parts store that I needed to let ride for 1 month and I let it ride on Blis and I did end up paying interest on it.  Maybe I'm unique in this but I chose the card specifically because it's not reporting plus the 2% is always nice and works to offset the interest I did end up paying.

Message 18 of 166
rmitche8
Regular Contributor

Re: Is Blispay too good to be true????

Who knows how their contracts are worded. They may get a reduced rate from VISA or they may be taking a business approach to draw as many new customers in as they can only to nerf the benefits in the future.

 

Surely such a large start-up venture like this would of had a sound business plan to get the seed money necessary, as well as strategy to get others on board. I could be wrong though. After all, many companies fail.

Message 19 of 166
BrutalBodyShots
Super Contributor

Re: Is Blispay too good to be true????


@irunfromcredit wrote:

 

And are you sure you would be approved with a low limit?  I though I would be approved for $2000 or something.  Was approved for $6200, was kind of surprised. Smiley Happy


Well, you can never be "sure" so who knows... Smiley Happy  The lowest limit I have seen approved for Blispay is $3000 (680ish EX score).  My EX currently sits at 734 and looking at the credit pulls database and on this forum I'd guess my SL would fall in the $5000-$7500 range.  I'd be very happy with $7500, but $5000 would be a bit of a letdown.  Scores of 740+ have yielded $7500-$10000 limits; the highest I've seen is $12000 with I believe an 830 score.

 

Not really sure if it's worth holding out longer for my score to creep up another 10-15 points (or if it would even matter, really) or if I should just pull the trigger and hope for the best.

Message 20 of 166
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.