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Say "No" to CC Offer After Applying

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Say "No" to CC Offer After Applying

Hey all, 

Quick question for you. I'm thinking about applying for a CC with a lower APR rate (see my previous post today), but when looking at card websites I've realized we don't actually know the APR rate we'll get. There's a range offered, but what you get depends on "credit trustworthiness." 

Is it possible to negotiate the APR before accepting the offer? Has anyone ever done this successfully? Or would you just decline an offer with higher APR than expected? I would assume most people accept at this point because there has already been an inquiry added to your credit report. 

Let me know your thoughts.

 


Message 1 of 11
10 REPLIES 10
Valued Contributor

Re: Say "No" to CC Offer After Applying


@moneynerd wrote:

Hey all, 

Quick question for you. I'm thinking about applying for a CC with a lower APR rate (see my previous post today), but when looking at card websites I've realized we don't actually know the APR rate we'll get. There's a range offered, but what you get depends on "credit trustworthiness." 

Is it possible to negotiate the APR before accepting the offer? Has anyone ever done this successfully? Or would you just decline an offer with higher APR than expected? I would assume most people accept at this point because there has already been an inquiry added to your credit report. 

Let me know your thoughts.

 


It is possible to negotiate with a bank for the terms of any unsecured loan (including credit cards); however, applying online is not the way to do it. For example, @Mahraja does this frequently by calling and speaking to loan officers and underwriters at different financial institutions (he can provide more information on his technique). To have negotiating power, you must show the ability to be a profitable customer (e.g. the number of deposits, swipes and sizable payments), and the creditworthiness to negotiate terms. If one has a 710 Fico 8 and $5 in their savings account, financial institutions will most likely tell you that their underwriting decisions are firm upon review of your credit report.

 

There are financial institutions that will lower your APR after you have shown to be a preferred customer. I was able to negotiate the lowest APR on my Citi Aadvantage Platinum Select Card a couple months ago, after having the card for just under a year. My EQ Fico 8 Bankcard Score with them is 810.

 

One of the most interesting things, for me, to watch from the Apple Card/Goldman Sachs partnership is the transparency to provide an APR and credit limit prior to formally applying for the card. Let's see if that trickles on to the other issuers.

Message 2 of 11
Frequent Contributor

Re: Say "No" to CC Offer After Applying

Some banks may have offers for you based on your relationship. PenFed just lowered my rate and gave me a CLI. Age and types of accounts probably have a large factor in the decision making. My lowest APR is with NFCU @ 8.24% (NFCU Fico score shows me at 824).

 

Good Luck!






RIP: EECU PLOC | BBVA PLOC | Chase SP | Chase Amazon | Chase Freedom | WF Propel | Cap1 QS |
Message 3 of 11
Senior Contributor

Re: Say "No" to CC Offer After Applying

@RicHowe, to address your comment about the Apple Card process, I’m thinking it won’t simply because of posts I’ve seen here where someone gets less than favorable terms and says “if I’d known I’d only get $xxxx for a limit I never would’ve applied but I might as well keep it now.” Too many of those means too few people accepting a card with no adverse effect on their reports (HP, AoYA reset) and fewer customers (and lower profits) for that lender.


Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | IT Cash | IT Chrome | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Overstock | Kohl’s

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
(Lol so much for that grand plan...)
Message 4 of 11
Member

Re: Say "No" to CC Offer After Applying

@CramEiko,

Congrats on the 8.24% with NFCU. That is impressive. 

 


Message 5 of 11
Contributor

Re: Say "No" to CC Offer After Applying


@moneynerd wrote:

Hey all, 

Quick question for you. I'm thinking about applying for a CC with a lower APR rate (see my previous post today), but when looking at card websites I've realized we don't actually know the APR rate we'll get. There's a range offered, but what you get depends on "credit trustworthiness." 

Is it possible to negotiate the APR before accepting the offer? Has anyone ever done this successfully? Or would you just decline an offer with higher APR than expected? I would assume most people accept at this point because there has already been an inquiry added to your credit report. 

Let me know your thoughts.

 


A good question. One would have to be an important client with the bank to be able to negotiate APR's. I would think a person has to have a personal banker for that to even be possible. By this, I mean a Chase Private Client or JP Morgan client, Citi Gold client with significantly more than the minimum assets required to maintain the account, or a Wells Fargo Portfolio customer. 

 

Underwriters are an isolated group of people who never have any direct contact with those who are seeking credit. Either your personal banker negotiates with the underwriter directly for a lower rate, or your personal banker talks to a loan officer, who then helps negotiate with the underwriters on your behalf. An underwriter's decision cannot be influenced by the customer's pleas of poverty, need for the loan, etc. An underwriter's job is risk and risk only... The only gray area is "how much" of a risk is calculated to determine if one qualifies for the best interest rates for a loan, the worst, a rate in between, and not qualifying at all. 

 

Some credit unions may take your relationship with them as a way to reduce their nerves for lending money to you. For example, one of my local credit unions liked the payment and balance history of a secured credit card I held with them for nine months, so they went ahead and approved an unsecured rewards credit card for me with a $500 limit and 17.99% interest rate (credit score they pulled at the time was 589). Soon after, the limit was raised to $1,000 and then $1,500 and the interest rate was dropped to 11.49% because my score went up to 680 a short time after. 

 

To negotiate rates directly with underwriters, however, is just simply not true... Customers and members do not speak to underwriters directly. 

Message 6 of 11
Super Contributor

Re: Say "No" to CC Offer After Applying

We've got a local credit union that posts their rates on a chart that includes your TU 8 Fico score... if your score is 680, your interest rate is 14%, if your score is 720, your interest rate is 12% and so on...

 

Not every lender makes that information public, but some will reveal that information if asked.

11/01/19 Fico 8: EX 726, EQ 721, TU 747.
11/08/19 Fico 9: EX 733, EQ 740, TU no idea...
Zero percent financing is where the devil lives...

Firmly in the garden until the next pre-approval arrives!
Message 7 of 11
Member

Re: Say "No" to CC Offer After Applying

@tcbofade,

Good to know that that level of transparency exists. 

As consumers we should have access to this info.


Message 8 of 11
New Visitor

Re: Say "No" to CC Offer After Applying

Credit unions seem much more likely to be transparent and not play the arp games (atleast from what I have seen).

PSECU gives everyone the same rate based on the card you have, irrespective of credit. They will, however, approve or deny you the card all together based on credit.
Message 9 of 11
Valued Contributor

Re: Say "No" to CC Offer After Applying


@moneynerd wrote:

 


The way you do it is PIF for several months and then negotiate with the banks.  If they don't budge then you don't swipe and make them money.

 

Disco for example will renew the 0% period after it expires if you ask them 

Citi makes rediculous offers of 3.99% for 12 months 

Chase... forget about it

Amex will lower it for 12 months but doesn't offer any 0% periods after the first one when you open an account.

 

As to pre-approvals that offer you insight before hitting submit... BBVA will if you have an existing account and login before hitting apply as well as Regions.. there are some others out there that have been mentioned as well.

 

The lowest APR's though traditionally will come with CU accounts and @galahad15 seems to have a fistful or two of them with different banks and CU's.  I have a couple of fixed rate cards under 10% and 1 of them is 6.9% which makes interest charges from other banks laughable in comparison.

500K+ TCL / 800+ FCOs
Message 10 of 11
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