Guest: KristinNichole Post subject: Establishing Credit With Credit Cards Posted: Mon Jun 02, 2003 1:30 pm
I simply don't know what to do. I'm renting my apartment. I pay my bills. I have a checking account and have had a savings account since I can remember. And NO ONE will give me credit. Anyone have any ideas?!
Guest: Kitten Post subject: Establishing Credit With Credit Cards Posted: Mon Jun 02, 2003 2:17 pm
First off, you may want to get a copy of your credit report to see if there are any errors on it. If there are, make sure you get any mistakes corrected or removed. If you still don't get any credit after you do that, then you may have to look into getting a secured credit card. I suggest that you get one from a local bank or credit union. They are usually more willing to work with you and charge less fees.
Guest: Eugene SENIOR MEMBER (Member for 2 yrs.+) Post subject: Establishing Credit With Credit Cards Posted: Tue Jun 03, 2003 2:23 pm
None of the things you mentioned build you credit. Only credit builds credit. What are the reasons why nobody gives you credit? They have to send you a letter with explanations every time they reject your applications. Look at those reasons and eliminate them. We can help here if you are more specific.
Guest: Verne SENIOR MEMBER (Member for 2 yrs.+) Post subject: Establishing Credit With Credit Cards Posted: Tue Jun 03, 2003 3:35 pm
I echo what Kitten and Eugene said.
If you have no credit history you need to establish credit. Buy something over time, perhaps, with a store card. Stores (especially big department stores like Penneys) often extend credit to those without a credit history.
A local credit union is a good idea too - especially if you have an account and direct deposit (when possible) with them.
Have you ever bought anything on credit? Otherwise, you may have no credit report.
The real catch22 is getting credit for the first time. Like Eugene said, "only credit builds credit". Or, to quote the Credit Bible's genealogy, "Credit begets credit".
Guest: KristinNichole Post subject: Establishing Credit With Credit Cards Posted: Wed Jun 04, 2003 7:18 am
Like you said only credit builds credit. But no one will give you credit unless you already HAVE credit. And when they reject me they said insufficent credit history.
Guest: Kitten Post subject: Establishing Credit With Credit Cards Posted: Wed Jun 04, 2003 1:45 pm
KristinNicole, I think you may be missing our point. Yes, we all know that credit builds credit. But since you have been unable to get any, I suggested that you try a SECURED credit card or apply with your local bank. A secured card is a real credit card. Your bank or which ever company you deal with would set up a savings accout in the amout of whatever credit line you would like. They "freeze" this money to ensure that the funds are availabe in case you don't pay. After a while of establishing a good payment history, the bank may change the card into an unsecured one. The money that was "frozen" would then be available to you along with any interest that you earn. If you have a good realtionship with your bank or credit union, even without having any prior credit, they may work with you to give you an unsecured card automatically. You shouldn't have any problems getting a secured card at least.
Guest: db619196 Post subject: Establishing Credit With Credit Cards Posted: Wed Jun 11, 2003 12:24 pm
Kristin, I had the same experience about 9 months ago. I am a member of a Credit Union and I wrote them a letter with the application telling them that I have been a responsible customer of theirs since I was 18. I also had my dad write a letter saying he would be co-signer, so his name was on the card too. It worked, and I got a 500 dollar limit on the card. Sometimes working with the little guy is better than going with a big company.
Guest: Space Ghost Post subject: Best Rewards Credit Cards Posted: Sat May 15, 2004 1:19 pm
I ran across one credit card site that offered to invest 1% of purchases for you. I do not remember the location of this site.
Does anyone know of any cards off hand that invests your reward? (as opposed to cash back, FF miles, rebates, ect ..)
Guest: Charley Post subject: Best Rewards Credit Cards Posted: Sun May 16, 2004 11:52 am
I look for the dollar equivalent of rewards to measure how good the rewards program is.
The easiest to judge is a program that gives you cash back. Most will payoff at a 1% rate. Charge $5000, get a $50 gift certificate.
Watchout for mechandise rewards. You will find that you can do much better taking the cash and going out and buying the reward at a local discounter. Compare the bottom line in dollars and most merchandise rewards payoff at about a 0.7% rate.
The best cash back card that I found is the Fidelity Investments card that pays cash back at a 1.5% rate. That is really good. The catch is that you have to have a Fidelity brokerage account. I think the gas cards and GM cards pay at a pretty good rate too.
If you can pay off your card monthly and avoid interest charges and fees, reward cards can be worth something
Changing From Variable Rate to Fixed Rate on Credit Card
Guest Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Thu Jul 01, 2004 2:20 pm
My At&t MC is offering to change my 7.99 variable to a 7.99 fixed. Also they're giving me 0% on new purchases for 6 mos. This is after refusing to lower my rate. Good or bad?
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Thu Jul 01, 2004 7:51 pm
In this era of RISING interest rates, why even ask? You'll never see a permanent fixed rate lower than 7.9%. Just remember to ALWAYS get your payments in on time or you'll see just how fast they can raise that "permanent" rate.
Guest Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Fri Jul 02, 2004 9:42 am
Agreeing with Ira 100%.
Be happy you got 7.9% fixed.
Guest Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Fri Jul 02, 2004 5:29 pm
I thought so but I wanted to run it by a pro. I'm very suspicious of anything that these CC co's do. I have ADD and when someone reads me a five minute agreement in legalese my brain gets frazzled. I also called back the next day ( they can only process one offer at a time) and got them to give me 0% on new purchases for 6 mos. Thanks. FYI, When I applied for a Discover 0 for life on BTs, It offered 8.99 and without asking, they gave me 5.99.?? Not complaining!
Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Sat Jul 03, 2004 6:04 am
Excellent! You're successfully shopping for credit. Would that more people did the same.
Guest: Polonius Credit Expert (100+ Posts) Post subject: Changing From Variable Rate to Fixed Rate on Credit Card Posted: Sat Jul 03, 2004 10:31 am
You still have to read all the fine print. For example, I've seen offers of fixed rate cards that take away the grace period--you still have to pay that 7.9% (or whatever) even if you pay your bill in full each month. Or some cards add an annual fee when the change is made--or take away rewards points.
Shop--but be careful; banks are not your friends any more.
Guest: Paula Post subject: American Express Green Credit Card Posted: Thu Feb 19, 2004 5:06 pm
Any thoughts on the American Express Green card?
Guest Post subject: American Express Green Credit Card Posted: Thu Feb 19, 2004 6:34 pm
Why do you want to pay annual fees for AmEx Green card? There are many credit card companies offering cards with interest rate as low as 4.99% or 5.99% and no annual fees. If you have good credit, banks will mail you pre-approved offer with 0% APR for 1 year, after that 7.99% APR. I agree that AmEx charge card is a high end card but I don't want to pay the annual fees.
Guest: nativechild48 Credit Expert (100+ Posts) Post subject: American Express Green Credit Card Posted: Fri Feb 20, 2004 2:43 am
Some people would prefer to have a charge that gives them double point for everything they purchase rather than have revolving line of credit. Some people prefer both Blue, and the green or gold. Amex has good marketing strategy and you can have both. You can pay it off each month and for purchases over 200.00 you can pay over time at a fixed rate plus there is the sign and travel, and it is very convenient for those who are on a budget and watching their FICO. Spend what you know you can pay and no problem _________________
Guest: elephant3823 Post subject: When to Apply for A Secured Credit Card Posted: Sun Jul 25, 2004 3:37 pm
I filed bankruptcy in 1995; My fico score @7/15/04 is 702(average of 3 credit bureaus); Current credit card charges 19.99% plus $7.95 monthly fee; Have paid it off but not closed it. In order to keep it open I have to pay the monthly fee even if no balance due them. But have no other open credit cards, other than a Sears card on which I owe 26% of my credit line, so do not want to close my current Visa until establish another credit card. (Have a joint mortgage and line of credit on mortgage). Considering a secured card but it seems to me I read that it is best to initially open it with the largest amount possible. I would, it appears, have annual fees on the secured card also. What are the pros and cons and keeping the Visa I now have compared with replacing it with a secured card? Since this would entail applying for a new card, whether or not the credit bureaus are aware it is a secured card, wouldn't that reflect negatively on my credit reports? Also, information regarding a secured card on Cardrating.com refers to 4 credit bureaus. I am only aware of three. What is the name and address of the credit bureau, in addition to Transunion, Experian & Equifax, to which you are referring?
Guest: NightStar Board Monitor Post subject: When to Apply for A Secured Credit Card Posted: Sun Jul 25, 2004 8:54 pm
1st off call the current credit card companies you have now to request lower interest rate, and on the secured one, request that they make it unsecured.
With scores in the 700's you should have a heck of a lot better rates then you have now. All of the negative accounts which were included in bankruptcy should be off all of your credit reports, and that bankruptcy should come off next year.
The 4th credit reporting agency is Innovis -
www.innovis.com
They have been around for some time now, but still not used as much as the other 3 credit reporting agneices, they deal more with negative account reportings. So make sure they are up to date as well as the others.
With your scores, you should be getting better cards with better rates then what you have now.
Guest: elephant3823 Post subject: When to Apply for A Secured Credit Card Posted: Sun Jul 25, 2004 9:08 pm
Thanks for responding so quickly. Perhaps I was unclear. I do not have a secured card, however was considering one. Seems some have lower interest rate than my visa, which is not secured. But it does have a fee, which I would like to get out of paying. I asked for a lower interest rate, but was told not available. They did raise my credit limit (?) & they did offer to let me consolidate other debt at 3.99% until January 2005 at which time it would then be 9.99% plus prime. I politely declined. Because of the bankruptcy I have been turned down by credit card companies. Any suggestions as to which ones I should specifically apply to? These inquires are not looking good on my credit reports so I want to be selective. I would much prefer a credit card @ 0% interest. Who wouldn't? What is reasonable? I will check out innovis as well. Thanks for that info also.
Guest: NightStar Board Monitor Post subject: When to Apply for A Secured Credit Card Posted: Sun Jul 25, 2004 10:07 pm
That was not bad of a deal you got there 9.9% I have one currently at that.. was Citi Bank w/ balance transfer offer of 0% for 9 months.
I have been chasing for good credit card offers, but checking on the internet, I have not seen many that I want.. it is a mixed bag. Like the one you had or that I have now.
I have been trying to get lower fixed rate cards like what Pulaski Bank offers, but I been there and tried that with no luck. Plus learned afterwards how easy they sell their accounts. So you would only have the deal as long as you stayed within their requirements, which are quite tight.
Here is a list another person had put together listing specifically which creditors are bankruptcy friendly that you can try.
I am starting to think the way to go will be opting back in to the credit reporting agency so that the companies start sending me offers again. Originally opted out for security from ID Theft, but since then I have switched to using a po box - so that should be better now to reverse the opt out.
Guest: sunshine2459 Post subject: Credit Cards and The Prime Rate Posted: Tue Dec 28, 2004 2:00 pm
My question is: I have a credit card with a 9.9 % fixed rate. Last month my rate went to 12 percent and this month to 20.48 percent. I called my credit card company and inquired about this increase. I was told that even fixed rates can be increased if the prime rate goes up. Is this true or am I being ripped off. This makes no sense to me. How do I figure out if I am being taken advantage of. PLEASE HELP!!!!!!!!!!!!!!!
Guest: pepper jackson Post subject: Credit Cards and The Prime Rate Posted: Tue Dec 28, 2004 2:25 pm
What you are saying doesn't make sense. I can see why you are confused. Banks can change the rate on your card pretty much any time they want to but they have to notify you first. If you had a fixed rate that means that it is NOT linked to the prime. The bank can send you a letter saying they are changing it to a variable rate and then you would have the option of closing the card and paying off your balance at the old terms.
Another thing that can change your rate is if you do not keep your account in good standing. They dont have to send you a letter to make this change, its listed in the original terms of your card. But assuming you have been on time with your payments and the account has stayed under limit then I doubt the actual interest rate has gone up to 20%. If you took a cash advance or had any other fees on that statement then that can give you an "inflated APR". Basically, the fees are considered finance charges and a legal disclosure is required to tell you what your rate is if you were to be charged those fees every month for a year. You don't need to be concerned about an inflated APR. Look at the bottom of your statement and it should show what your average balance is and the rate that is being charged to that balance. It may be called "corresponding APR" or something like that. Does that help at all?? Good luck
Guest: rain Post subject: Credit Cards and The Prime Rate Posted: Tue Dec 28, 2004 7:50 pm
I have a related question. Will banks ever lower the rates on your card?
Thanks :>
Guest: DHK Post subject: Credit Cards and The Prime Rate Posted: Tue Dec 28, 2004 9:25 pm
If: - you ask nicely - your card is in good standing (never late, never overlimit, etc) - you USE your card - it's not issued by Capital One, Cross Country Bank, Orchard bank or First Premier. - get a job with them and get their "employee rate".
Guest: mouse SENIOR MEMBER (Member for 2 yrs.+) Post subject: Credit Cards and The Prime Rate Posted: Thu Dec 30, 2004 5:43 pm
PRIME has gone up from 4.00% to 5.25%
20.48% sounds like some DEFAULT RATE
This has no basis on 1.25% increase in the PRIME RATE!!!
Guest: Board Monitor Post subject: Credit Cards and The Prime Rate Posted: Fri Dec 31, 2004 3:13 pm
Good point mouse! My thoughts exactly. _________________ Best Regards, Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: guessindigo Post subject: Credit Cards and The Prime Rate Posted: Mon Jan 03, 2005 3:42 pm
Rain If you always PIF, you probably will not get the lowest rate the banks have. No reason to since those people never revolve. I think this is the point DHK was making when he said you have to USE the card.
In any event, 20% is a default rate most likely, but not always. Among the major card issuers, the default rate is something along the lines of 24%.
But you should always ask, you never know if you never call to ask. Banks will never lower a customers purchase APR on their own.
Guest: slickytfox Post subject: Credit Cards and The Prime Rate Posted: Mon Jan 03, 2005 3:59 pm
The prime rate fluctuates so much I had no idea prime was ONLY 4% recently.
Wasn't prime fluctuatiung between 5.25 and 5.75 frequently in the mid 90's?
Can someone educate me on this history in the last 10 years? Prime + " " has been so standard for 20 years or so, I had no idea it went that low.
Duh, I've only decided to educate myself recently.
Guest: mouse SENIOR MEMBER (Member for 2 yrs.+) Post subject: Credit Cards and The Prime Rate Posted: Mon Jan 03, 2005 7:28 pm
slickytfox wrote: The prime rate fluctuates so much I had no idea prime was ONLY 4% recently.
Wasn't prime fluctuatiung between 5.25 and 5.75 frequently in the mid 90's?
Can someone educate me on this history in the last 10 years? Prime + " " has been so standard for 20 years or so, I had no idea it went that low.
Duh, I've only decided to educate myself recently.
http://www.nfsn.com/library/prime.htm
Guest: Polonius Credit Expert (100+ Posts) Post subject: Credit Cards and The Prime Rate Posted: Mon Jan 03, 2005 8:02 pm
Prime rate changes going back to December 1947: http://mortgage-x.com/general/indexes/prime.asp
Guest: kgladysg Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 12:02 am
I have a credit card from MBNA which had a fixed rate of 7.9 until two months ago when it was raised to 17.98 fixed rate. I have a balance of $10,000 on the account. I called to check and see why the interest rate had gone up so high and was told it was because my balance was not changing. I am close to my credit limit on it and was told nothing could be done about the rate until my balance went down. I have always paid more than the minimum payment but now it is to the point where I just pay the minimum. I was informed that the interest rate would be changed soon to a variable rate or I could refuse it and keep my 17.98 fixed rate. Would it be to my benefit to change to the variable rate? It seems it can't be worse than the 17.98 fixed rate I have now. Please help!! I have a credit rating of 713. I guess I can try to find another credit card to transfer balances to but I imagine that's easier said than done.
Guest: Polonius Credit Expert (100+ Posts) Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 2:15 am
You don't tell us what that variable rate is, so how can we give you any help about which offer is in your best interest?
MBNA obviously can raise your rate at any time. It charges 24.99% to 29.99% to some of its credit cardholders. So you can't assume the variable rate will be better for you.
With your credit score, you should find it pretty easy to get a better deal from a different company. Apply, transfer your balance, and tell MBNA to shove it.
What is getting into these banks these days?
Guest: credithelp Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 9:01 am
With your credit score you shouldnt have a problem getting good rates. Card issuers do everything these days according to profits. If an issuer gets hit with alot of bk,charge offs,etc they tend to raise the rates on those who pay. It helps them to recover the losses from the negative accounts.
Guest: kgladysg Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 6:28 pm
Sorry. I guess you can tell I really don't know much about interest rates. I received my letter today reference the change to 19.99 variable rates. Thanks for your assistance.
Guest: credithelp Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 6:59 pm
With a 713 credit score you should be able to get the best cards with really good rates. See if they will work with you, if not you may want to look at another issuer. Do you have any negatives on your reports? If you do i would imagine they would be 4+ years old since you have a good score.
Guest: kgladysg Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 7:38 pm
No I don't have anything at all negative. I spoke to MBNA about getting a lower rate, but they said they couldn't do anything until I paid down my balance. I have had good ratings for several years - my problem is that my balances are too high. Thanks for your advice. I will check out other credit card companies. I just worry about trying to find a bank that will give me close to the same credit line so I can transfer all or most of my balance and get the one with MBNA closed.
Guest: ALex Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 7:57 pm
There is more than a credit score that is involved when a decision is made in regards to increasing the APR , the reason in this case is because the amount of the balance as well as balances that may be on other credit cards, ect.. You could have a score of 800 and and if you had 50k of revolving credit available and you were using most of it as well as making minimum payments, and that it is an unsecured loan, there is risk involved. That is the reason why the rates are increased.. There is a chance that another credit card company may not want to bring over the MBNA balance to their company if there is a lot of external revolving debt. .. Best bet is to call MBNA and discuss it.
Guest: cabledude Post subject: Credit Cards and Variable Rates Posted: Sat Sep 18, 2004 8:10 pm
If you have other cards with high balances it may be tough, but with a score over 700 you most likely do not. I personally love MBNA for two reasons:
High Credit Line Great Bill Payer Service
I hate them for one:
25.99% Variable rate
With that said I no longer revolve a balance with them and they are paid in full monthly. Go find another lender right NOW!!
And DON"T close that account!! Use the bill payer service to extend your grace periods. They charge nothing for the service as long as you pay a few bills monthly with the card. Besides closing the card will hurt your utilization. Even if you don't use the bill payer service buy dinner on it once a month and pay it off to keep the $10K working for your total credit utilization. As funny as it seems closing accounts may hurt your credit score!!!
Guest: Bodhica Post subject: Credit Cards for Auto Purchase Posted: Sun Oct 31, 2004 3:51 am
Greetings all,
I am looking to finance a $10,000 used automobile which I plan to buy used from an individual (not a dealership). I am leaning towards using a credit card to finance this vehicle instead of an auto loan for three reasons (please correct me if I'm mistaken on any of these):
* There are no penalties for paying my debt off early (I plan to pay it off within a year) * A credit card company would not mandate the fulfillment of any certain requirements for caring for the vehicle (such as auto insurance) * If I were to default on my debt, a credit card company would not have to power to repossess my car
My needs in a credit card are three-fold: * A credit limit which will meet or exceed $8,000 - $10,000 * A low cash-advance fee * A low cash-advance APR
My credit history is good. I've paid off about $10K in credit card debt before without any incidence of late payment. I currently have about $7K in credit card debt which I'm quickly paying off. In all, since I first established my credit about 6 years ago, I have 2-4 late payments total. I currently have about $2K in the bank and about $1500 coming in monthly (but don't pay rent). I first established a checking account around 1994 which I have maintained since.
Questions I have: * Would it be best to put the $2K I currently have towards my credit cards in order to improve my credit standing before applying for a credit card with a $10,000 limit or should I apply this money as a down payment on the car? * What credit cards would be best to fulfill the needs I have (cited above)? * I don't want to wear out my credit rating by applying to many credit cards which don't approve me for the credit limit I'm seeking. What credit cards which would be most likely to fulfill my needs be and approve me? * As a full-time, independent student, might there be any special credit cards which I could qualify for that would fit my needs? * Is there any way around having to charge this debt as a cash advance (and incur consequent charges)?
This is my first time actively seeking a high-limit credit card. Any other advice would be welcomed. Also, if anyone has any alternative ideas for financing this vehicle which are better than mine or if you know of any resources I might utilize to answer my above questions, this as well is very welcome.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 4:36 am
Yes, you can finance a car with a credit card, but how in the world are you going to get an individual to accept a card as payment? Anyone accepting a credit card would have to have a merchant account. In other words, they would have to have a business.
Guest: rhwbullhead Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 6:55 am
It looks like the OP wants to do a cash advance to pay for the card. AFter all, the OP asks which cards have a low cash-advance fee and APR.
Guest: HJM Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 2:24 pm
Average cash advance fee is 3%, so you're looking at $300 in fee. However, with the exception of MBNA, most credit card issuer set a lower cash advance limit, so it may be difficult to get at credit card with $10,000 cash advance limit. Moreover, there is a limit on the amount of cash advance. For example, you have to do 20 ATM withdrawals for a card that has $500 per ATM cash advance transaction. Finally, most credit card charge 18% up for cash advance.
There is a few alternatives.
1. Credit unions usually don't charge cash advance fee. However, the interest rate for cash advance still higher than typical car loan.
2. Since you plan to pay it off in a year, you can apply for card with 0% APR on balance transfer for 1 year. I know one credit card issuer (GM Card/Household Bank) that let you write balance transfer checks, included in the welcome package, to yourself and still treat it as balance transfer. Hence, you can use the whole credit line, and don't have to pay interest. However, Household bank gives low credit line according to my experience.
3. MBNA currently have 2.9% promotion on balance transfer and cash advance for six months. I'm getting checks and e-mails about it on all my credit cards I have with them. MBNA may be the way to go because they are very generous with credit line, and the credit line is also your cash advance limit.
Guest: Board Monitor Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 3:51 pm
I think the balance transfer option would be the best. As HJM points out, some card issuers do allow you to make the check out to yourself or to creditors (other than credit card companies). Just check with them prior to verify prior to applying.
By the way, good to see you around again HJM! Seems like it's been a while since I saw any posts from you... Best Regards, Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
Guest: Polonius Credit Expert (100+ Posts) Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 8:18 pm
But why handle the auto purchase this way at all? Your reasons really aren't valid. You say: Quote: * There are no penalties for paying my debt off early (I plan to pay it off within a year) * A credit card company would not mandate the fulfillment of any certain requirements for caring for the vehicle (such as auto insurance) * If I were to default on my debt, a credit card company would not have to power to repossess my car
A secured auto loan will be at a much lower interest rate than a cash advance on a credit card. If you plan to pay it off within a year, get the loan for a year. It's true that a credit card company won't force you to get auto insurance--but I don't know any state where it's legal to drive without insurance, and it's pretty foolish to not have it. Finally, what makes you think that a credit card company isn't able to go after any of your assets--your salary, your house, your car--if you don't pay? Plus if you're honorable and plan to pay as you say, why even think about that?
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Credit Cards for Auto Purchase Posted: Mon Nov 01, 2004 9:51 pm
The only real "advantage" to purchasing a vehicle with other than a car loan is that you would receive the title immediately. So what? I cannot think of any real advantage this gives you. If you want to sell the car prior to paying off the loan you can always do so by using the proceeds of the sale to pay off the remaining balance, assuming that you would be able to sell if for more than you owe.
You can always pay off a loan early. I bought my current vehicle on a five year loan since the APR was no higher than it would have been for a shorter loan. I then proceeded to pay it off in 18 months. I considered the five year term to be disaster prevention. Just in case something happened, I would have the lower monthly payments to fall back on.
I agree with Polonius. You can purchase a car without having insurance, but you could never register it, so what's the point?
Guest: Bodhica Post subject: Credit Cards for Auto Purchase Posted: Tue Nov 02, 2004 1:14 am
Thanks everyone for your thoughts; they are very appreciated. I will surely look into the MBNA card. Any further advice regarding this?
Quote: Finally, what makes you think that a credit card company isn't able to go after any of your assets--your salary, your house, your car--if you don't pay? Plus if you're honorable and plan to pay as you say, why even think about that?
Although I don't plan to default on my debt, the purpose of my reservations are to protect myself against unforseen circumstances. If I were to lose my job, I wouldn't want to lose my car immediately afterwards; at least I would have some transportation until I got back on my feet. Gotta think ahead in these times of uncertainty.
Quote: You can always pay off a loan early.
Aren't there penalties for paying a loan off early?
In light of what you two have told me, I'd be very interested to hear your thoughts on the best cars loans to fit my needs.
Any ideas anyone?
Guest: rhwbullhead Post subject: Credit Cards for Auto Purchase Posted: Tue Nov 02, 2004 8:49 am
Check out these two sites for getting a car loan: Captial One: http://www.capitaloneautofinance.com
E-Loan: http://www.eloan.com/home
Capital One will give you a check to use to buy your car. E-loan can check your credit once, and then give you a list of several creditors who will lend to you, and their rates.
BTW, On most car loans, there isn't a prepayment penalty.
Guest: fotomaniak Post subject: Credit Cards for Auto Purchase Posted: Tue Nov 02, 2004 5:20 pm
Doing cash advance is not an option: you'll pay 3% transaction fee and the amound you withdraw will be subject to a high apr(usually cash advance apr is the highest - 20-25%). there is a small chance that you may be able to get promo offer with 0% apr for cash advance(I don't think such offer are frequent, if they exist at all), but I really doubt that CC company will waive the 3% transaction fee.
1) If you are planning to pay off $10K in 12 month, the best option would be to get 12(or more) month 0% BT offer with low or no transaction fee and ask the bank to deposit money in your checking account(or mail you a check). Most banks will do this for you under the same terms as a BT (I've done this with MBNA, Citi and Chase). Just make sure that same apr applies to both cases (BT and getting $ deposited in the bank). Note: Citi/Chase usually waive tranasction fee for 0% offers for new accts, MBNA does not, but it's capped at $50 or $75 depending on the card.
If there is any chance that you won't pay off $10K in 12 month, don't put it on the CC. All the money you save due to 0% apr and no collision insurance will be spend on paying the high interest.
2) If you can not get 0% for 12 month, it's better to get an auto loan (assuming the rate is ok) - yes you'll be required to buy collision insurance, but it's better to pay a few hundreds for insurance than pay $300 for cash advance, at least you are getting collision for these money.
3) If you can get 0% for 12 mo and can't get good rate for autoloan, then and only then cosider doing a cash advance.
Slightly OT: 4) is the car purchase urgent or can you wait till you pay off the CC debt? (more chances of getting 0% offer if you pay off your CC debt) 5) if you are going the CC route you need to budget $850 a month for paying off the card. 6) it may be a good idea (depending on your location, driving habbits, locations where you park the car) to keep collision insurance
Guest: Bodhica Post subject: Credit Cards for Auto Purchase Posted: Wed Nov 03, 2004 9:35 pm
fotomaniak,
Thanks very much for the info. A couple questions for ya:
1) What is a BT?
2) I'm a bit confused by this:
Quote: the best option would be to get 12(or more) month 0% BT offer with low or no transaction fee and ask the bank to deposit money in your checking account(or mail you a check). Most banks will do this for you under the same terms as a BT (I've done this with MBNA, Citi and Chase).
In the first setntence you recommend a BT. Then, in the second sentence, you state that "Most banks will do this for you under the same terms as a BT" as if you are referencing something other than a BT. However, I can find nothing else in your preceding comment, except a BT, which you might be referring to. With all respect, might you have made a grammatical error or typo? Could you please clarify this?
Guest: MedSchoolGirl Post subject: Citibank Credit Card Offer Posted: Mon Dec 20, 2004 10:55 pm
I received a call this morning from a citibank customer service rep that offered me a chance to apply for a citibank credit card for students. I was wondering if they contact you if that means you have a better chance of getting the card. I've never received a call to solicit an application before. I didn't want to waste another inquiry, and I told the rep that I had applied with citi recently and was denied. I also told her that I had a recent bankruptcy and she told me that with this offer it may not matter as much. I don't really know if I believe her but she convinced me to apply anyway. Anyone have an opinion my scores according to pg are still pretty low (580-590s), and from everything I hear my actual scores from Fico are probably even lower. I have a bunch of IIB accounts, one collections account that I have made payment arrangement with, but they have not reflected this on my credit report, and one charge-off. Any opinions?
Guest: NightStar Post subject: Citibank Credit Card Offer Posted: Mon Dec 20, 2004 11:01 pm
One creditor can have different credit requirements for different credit card offers... so it may be that you can get approved for one, when you could not on another.
Though your scores are low, I honestly don't know how low they go on approval. I would of guessed low 600's.
Guest: Polonius Credit Expert (100+ Posts) Post subject: Citibank Credit Card Offer Posted: Mon Dec 20, 2004 11:03 pm
I don't want to worry you, but just as a general caution for all--be suspicious when you get a call like that. Probably the person who called you really was from Citibank--but what if it was just a person pretending to be from Citibank? Be very careful about giving out SS#, dates of birth, and bank account information to anyone who calls you with a credit offer when you didn't initiate the call.
Guest: MedSchoolGirl Post subject: Citibank Credit Card Offer Posted: Tue Dec 21, 2004 2:09 pm
Good point. Didn't even think about that. I am entirely too naive. But I pulled PG this morning and I did indeed receive a new inquiry from citibank...so at least I don't have to worry about that.
Guest: Paul Post subject: Shell Mastercard from Citibank Posted: Sat Jun 07, 2003 3:59 pm
I have a Shell Mastercard from Citibank with a $15,500 limit. For the past few months I have been using it quite heavily, charging both gas and other items. Now I have found another card which I prefer to use, at least for the non-gas purchases.
My question is: If I keep the Shell Mastercard and use it for just gas (about $40 a month or less), is this going to screw up my record with Citibank or my credit record? Doesn't it look funny when I charged $2500 a month for several months and all of a sudden drop to $30-$40 a month (for gas only)?
Is it better to just get rid of the card under these circumstances? I have been with Citibank since March of 2001 (under another card), but just converted to the Shell Mastercard this January when Citibank took it over from Chase. Or is it better to keep it open, even under these limited usage conditions?
Guest: sisflomi Credit Expert (100+ Posts) Post subject: Shell Mastercard from Citibank Posted: Mon Nov 10, 2003 11:07 pm
I think that if you stop using it as much as you were, they might drop your limit. I have also read where cards up the interest when you slow down your use.
I would call up citi bank and ask them to lower your credit limit. Of course only do this if the other card has a higher limit to cover the drop from the citi bank card. I wouldn't close the card unless you have longer history than this card, it could hurt your score.
Nightstar is the pro at this stuff, if you have furter questions please seek her out.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 12:16 am
Why should it screw up your credit with Citibank? I also have a Shell MasterCard and I*'ve cut way back on usage for the past six months for exactly the same reason - I found other cards which I'd rather use. What do you think happened? Other than getting lower bills on the card, nothing at all. Look, banks WANT your business. Why should they do something that would prevent you from doing business with them, especially if you've been a good customer. Just do your own thing. Don't try to outthink the banks, especially when you don't have tol
Guest: NightStar Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 8:25 am
I agree about not closing the card, at least your are using it, that should stay the creditor... you don't want the credit limit lowered if it will negatively hurt you.
Reason is, if the highest you have charged is more then the credit limit it will hurt the credit score, I have read some places that each over the limit listing can hurt the score as much as 50 points per occurance.
And this will happen if your credit limit gets lowered to less then what you highest charge was.
Watch Citi, have had accounts with them in the past, and they are usually preditory when you have high balances. Very good at sending change in terms agreement jacking the interest rates. Constantly going rounds with this creditor on that issue.
I am not personally familiar with them closing due to low usage, or none usage. But if they ever do tell you they are closing your account, then call them up and dispute that you want it reflected instead that you closed the account, or call to dispute that you want their reconsideration on the action that you want the account to remain open.
Unless you are running with major amount of credit cards, by all means maintain your relationship per creditor as long as possible, that is what looks good to the lenders, long term relationships. Of course that is getting harder these days, with the fluctuation in service - that is for sure.
Guest: Paul Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 10:31 am
Since my original post (in June) I have gone to using ANY gas, with another gas rebate card, plus all other charges on AMEX cashback.
Under these revised circumstances, is it still a good idea to keep the Shell Mastercard open, especially with a nine times a year use requirement? Citibank has no other card which I want. Shell gas is just one of many brands I use, and not the cheapest?
I have been sitting on this. Ira, what do you think? I need to make a decision.
P.S. Becuase of the 9 times a year requirment, sock-drawing is not an option. I have three other major rewards cards.
P.S>. Thanks to all of you guys for your opinions. This is a good board, and I will probably sign up as a regular. There are a lot of great credit minds here!
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 10:56 pm
Hmmm.....did you stutter? Same msg posted twice with the same time stamp.
However, my advice, for what it's worth, is to either keep the CitiCard Shell card and use it occassionally, or switch to another CitiBank card. They will do this for you. I just did it today, switching my available credit from a high interest card (zero balance) to one that has a zero balance transfer interest rate, zero balance transfer fee for 9 months. The whole thing took all of five minutes.
This will allow me once again to do a balance transfer to an interest bearing account, leave it there until just before the rate expires, then withdraw the unpaid balance (I will be paying monthly minimums during the 9 months), and pay back Citibank. I love this! Over a year's time I will have made close to $800.00 in interest using bank money. What a country!
BTW, I am keeping the Shell MasterCard. I drive over 40,000 miles a year and it's no big deal for me to get the occassional tank of Shell. Also, you're probably using the AAA MasterCard (same as I am) which gives you a 5% rebate at any pay-at-the-pump station. I recently needed gas and stopped at a Shell station which did NOT offer PATP. No problem, I used my Shell card to get the 5% rebate. One more reason to keep the card o-pen.
Guest: NightStar Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 11:03 pm
I thought it was not possible to balance transfer between affiliate cards?
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Shell Mastercard from Citibank Posted: Tue Nov 11, 2003 11:34 pm
Where does it say that I did a balance transfer? I simply combined cards
Many banks will allow you to combine two or three of their cards into one. I had a dormant CitiBank card with a $6,000.00 limit and a brand new (my specialty!) 0% balance transfer, 0% fee CitiBank card. I simply called customer service and had them close card 1 and move the available credit limit to card 2. I did the same thing with Chase a few months ago for the same reason. With MBNA I've simply changed one card for another. I'm not certain that all banks permit this, but there's three good examples of banks that do.
Guest: NightStar Post subject: Shell Mastercard from Citibank Posted: Wed Nov 12, 2003 1:04 am
Sorry I mis-read that, ok - I had not heard mention before of combinding credit limits to one card. Interesting way about it,
Do you see there being an advantage to combinding like this? Do you carry balances, or are you doing something different here?
I know one of you said, that balance transfers where made for profit, that is such a hard idea when a person like myself is looking at balances every month and trying to manage to the best to pay off and reabilitate situation.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Shell Mastercard from Citibank Posted: Wed Nov 12, 2003 8:07 am
If you have a high rated card and a low rated card (I'm talking finance charges here) from the same company, wouldn't it be better to combine both cards under the umbrella of the lower rate? That's what I'm doing. The only difference is that in my position I choose to go after only 0% rates. In your position you can use this technique to painlessly drop your interest rates,
Guest: NightStar Post subject: Shell Mastercard from Citibank Posted: Wed Nov 12, 2003 8:33 am
I don't any more, but will be interesting to possibly do that with DH's though. Citi is terrible with rate changes, periodically that keep jumping his 10% rates upto 20% rates. That is quite a difference they are trying to get out of a person. Makes it hard to pay down existing balances.
That is working with less I would think, cause if they do rate increase the next time, then it would be off to a new card all together to remedy the situation. Could give that a try, I really move slow, lol Always planning to great length each move, think of it like chess and hope not to move the wrong one.
Guest: NightStar Board Monitor Post subject: Shell Mastercard from Citibank Posted: Sat Nov 15, 2003 10:02 am
Shell Mastercard from Citibank with a $15,500 limit & carry $40 balance does seem strange.
60 day introductory rebates of 10% on all Shell gasoline purchases!* 5% rebates after that 1% Shell gasoline rebate on every other purchase Automatic monthly rebates
Great benefits including 24/7 customer service, online account management, Lost Wallet® Service, ATM cash access and more.
No annual fee for the first year. And no fee after that provided you make 9 Shell gasoline purchases per year.*
APR is 0% for 6 months from the date of the first balance transfer. APR for purchases is 13.99%. APR for cash advances is 19.99%. default rate of 27.99%.
Standard transaction fee for cash advances is 3% of the amount of each cash advance, but not less than $5. The transaction fee for balance transfers is 3% of the amount of each balance transfer; minimum of $5 and $50 maximum.
I ran into a second offer on gas cards - looks simular with small differences - thought to put them side by side to compare:
Chase PerfectCard Rewards Issued by Chase Manhattan Bank USA, N.A.
Apply today and earn a 6% rebate on ALL gasoline purchases for 90 days. Then earn 3% on all gas thereafter. And always earn a 1% rebate on everything else. Rebates are automatic. No annual fee the first year. Thereafter, a $19 fee will be waived if at least 9 purchase transactions in the prior year.
APR: Prime Plus 9.74%
Annual Fee: $19
Balance Transfers: Max Amount: $99750 Rate: 0.0% Period: 9 months
They show 3 APRs here: 13.74% / 15.74% / 18.99% standard purchases.
Preferred Pricing1 – Balance Transfers: For Elite Pricing and Premium Pricing, fixed 0.00% introductory rate for 9 months from account opening.1 Thereafter, 13.74% for Elite Pricing, or 15.74% for Premium Pricing.
Cash Advances: 19.99% for Elite Pricing and Premium Pricing, or 23.99% for Standard Pricing.
Non-Preferred Pricing - Purchases, Balance Transfers and Cash Advances: Up to 23.99%.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Shell Mastercard from Citibank Posted: Sat Nov 15, 2003 11:21 pm
For a pure gasoline rebate card, AAA Financial Services card from MBNA is the best. It gives you a straight 5% rebate on any pay-at-the-pump gas. Nothing else about the card is particularly noteworthy. I use it strictly for gas - what I call a boutique card, or a card that is used for one special purpose only - and pay the balance in full every month. I'm not even sure what the finance rate is.
I am constantly amazed at how the worm has turned over the past decade with regard to the way the gas & oil companies treat their credit card customers. You might remember when for about five years they charged a premium to those who had the audacity to pass a credit card; now they actually pay us to please use our credit cards. Amazing!
Guest: NightStar Post subject: Shell Mastercard from Citibank Posted: Sat Nov 15, 2003 11:26 pm
Thanks alot - was just now starting to check into there for DH since he drives 2 hours every day back and forth to work - figured I should get something for gas card to help out on the cost.
Guest: TWinbrook46636 Post subject: BP CitiBank Credit Card Posted: Mon Jan 26, 2004 1:32 am
Anyone have details on BP Citibank card? Suposedly it exists but searching the web just comes up with a bunch of dead links. Perhaps it does not exist anymore?
Guest: cjtheserviveman@aol.com Post subject: BP CitiBank Credit Card Posted: Fri May 28, 2004 9:30 am
if you found any info on the bp/citibank card please let me know. it's on my credit report.
Guest Post subject: BP CitiBank Credit Card Posted: Fri May 28, 2004 10:02 a
BP is bankone not citibank
Guest: Polonius Credit Expert (100+ Posts) Post subject: BP CitiBank Credit Card Posted: Fri May 28, 2004 10:38 am
First USA used to issue BP (British Petroleum) cards, but I think that was spun off to Citibank before First USA was bought by Bank One.
Citibank is now offering the BP gas cards (as well as its own gas card and the Shell gas card). Check here for details and applications: http://www.applybp.com/ for the BP card, and http://www.anbcards.com/acq_index.htm for a listing of all the cards offered by Citibank.
Citibank offers other BP cards--but the BP stands for Business Plus. Confusing, isn't it?
Guest: TWinbrook46636 Post subject: Available CitiBank Cards Posted: Sun Jan 25, 2004 4:38 pm
Hello,
I was just wondering if there was a list of available Citibank credit cards anywhere on the net. If not perhaps we can create one here. The Citibank website shows several but I know there are more such as the Shell card and the Sony card though the Sony card is being transferred to BankOne now. Anyone know of any others? Thanks.
Guest: TWinbrook46636 Post subject: Available CitiBank Cards Posted: Mon Jan 26, 2004 1:06 am
Well, I can't find any info. There is a Shell Citibank card. Looks like a Citgo and maybe a BP CItibank card but information is scarce. Anyone?
Guest: NightStar Post subject: Available CitiBank Cards Posted: Mon Jan 26, 2004 7:29 am
Only other one I know of now is their Platinum Select Card, don't know what is special about it, interest rate started for us at 11% about.
Also had a Sony Card, but as of Febuary will have a new owner, Bank One. That one was DH's favorite card with the points he was able to get to buy sony products. It had started as well at around 11% too. I am not aware of what Bank One will do with this account, so far nothing from them has been forth coming.
Guest: Ira SENIOR MEMBER (Member for 2 yrs.+) Post subject: Available CitiBank Cards Posted: Mon Jan 26, 2004 4:23 pm
Citibank manages a slew of vanity cards and makes special offers to their good customers. They don't advertise the gas & oil cards, for instance, but leave that to the vendors such as Shell & Citgo. That being said, I doubt you could find a complete list of their cards, any more than you could find a complete list of MBNA cards, which at last count numbered in the thousands. What value would such a list be anyway?
Is there a way to get this money (beyond transfer checks) when you first apply. Otherwise, I have it transfered to an existing card (and request the balance credited). Some like Citibank take 2 weeks or more to do.
It's better to request the transfer after you're approved for the card rather than with the application. Not only is it quicker (for some odd reason), but after the account is opened, you know exactly what the credit line is and know if there's sufficient credit to cover your entire balance transfer. If there isn't sufficient credit, most card companies will send out a payment for whatever the total approved credit line is, but it may not pay off the entire balance.
Guest: maddybeagle Post subject: Credit Card Transfers Posted: Wed Jul 20, 2005 12:45 am
ok. I normally dont care since I am more interested in getting a no interest loan to put in my savings account/money market account. I have always heard it is best to ask up front for this. My concern is getting into my money market account ASAP
I got my statement in the mail yesterday for my Providian card and it included an insert describing a handful of changes which will be applied to my account agreement soon.
They are switching my account from using the average daily balance method of calculating finance charges to the two cycle average daily balance method. Depending on how you manage your account, the two-cycle method can cost you a little more in interest than if the average daily balance method were used.
Just a reminder to everyone, if you're not already in the habit of doing so, please make sure you look at EVERY document that comes in the envelope with your card statements EVERY month. You never know when your card issuer might decide to change your agreement.
is the 2-cycle deal when you pay off a balance one month but get interest charges the next month because they averaged the previous 2 months. I think that is dumb. another reason to pay off every month and only have 0 percent balance offers.
Guest: Board Monitor Post subject: Two-Cycle Credit Card Billing Posted: Wed Jul 20, 2005 8:25 am
keb1209,
Thanks for the post! 2 cycle billing stinks!!! I am going to forward your post to a reporter from SmartMoney.com that is working on a related story... _________________ Best Regards, Curtis Arnold Board Monitor http://www.cardratings.com (501) 663-0314
