Currently Best Credit Card Offer in Industry
Guest: Bikshu
Post subject: Currently Best Credit Card Offer in Industry
Posted: Wed Aug 16, 2006 6:06 pm
I received one of these offers yesterday and it does appear to be one of the absolute best offers in the industry right now. In fact, I took the offer to work to show some of my co-workers simply because it is so much better than anything I'm offering clients now. I was very tempted to get the card except for one big problem I have with it:
Since it is a World MasterCard, it really does not have a pre-set spending limit. This makes it similar to a Visa Signature card or any of American Express' Gold or Platinum cards with no limit. This is the bank's way of saying that they will not charge an overlimit fee and will never report your credit limit to the credit reporting agencies (CRAs). You still technically do have a limit, however, referred to as your revolving credit access line. This is how much credit exposure we will allow you before one of our analysts will have to personally approve any future transactions. But in case you have to go over that line, nothing derogatory is reported to the CRAs since they do not have this limit in their file.
Sounds great, right? Not so fast. Because the actual credit limit is not reported, the CRAs are forced to use your high balance in place of it. So lets say you get this great Chase World MC account with an access line of $25,000. You now responsibly only put $400 on it, but you do put this same $400 on there each and every month. As far as the CRAs know, your credit limit is $400 and your current balance is $400... you appear to be tapped out so to speak. Never mind the fact that you are $24,600 under your limit, your utilization ratio still takes a hit and your FICO plunges.
If you have low total credit lines or a higher utilization ratio already, be very prepared for a FICO hit from any heavy usage or balance transfers on a no pre-set spending card. Only MBNA (now BOA) reports Visa Signature and World MC revolving access lines to the CRAs, so you would not run into this same problem on one of those cards. Otherwise, I highly recommend that most average Joe's carry only one no pre-set limit card at any given time. You have to decide whether you'd rather have a Visa Siganture, a World MasterCard, or a premium AmEx. Only a Big Fish with a FICO of 730+, total reported credit lines of $50k+, and an annual THI of $100k+ can disregard this warning. Otherwise, be sure to check your credit report before applying for this great 0% Chase World MC offer.
The other posters are correct regarding the promotional rates, however. As long as no terms or conditions of the card agreement are broken, the bank cannot legally reprice a promotional rate (this would be called "adverse action" which is against federal lending laws). Just make sure your payments are of sufficient size, sufficiently early, and that there are no minimum retail purchase requirements (Discover card anyone?) The bank is free, however, to reprice your contract rate while you are still under the promotional rate. So it is hypothetically possible that Chase could raise that fixed 8.99% APR to 15.99% or what have you anytime prior to your 0% running out on March 1, 2008. Since your balance was not at the 8.99% rate when the repricing took effect, it is not considered adverse action and is completely legal. I'm not saying that Chase would do this, but its something to bear in mind. Always have your Plan B ready even when a great offer like this comes around.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: wierdo
Posted: Wed Aug 16, 2006 8:13 pm
Citi is claimed to report the limit on the World MC products if you fax them a written request to do so. Once I get my Visa from Chase (presuming they approve me for the Signature rather than the Platinum), I'll be asking them if they'll do something similar.
Alternatively, I could use the BT check they send to deposit most of my CL in the bank and PIF it a month later, making my high balance the credit line. Of course, with a 3% fee with a minimum $15 and max $75, that could get rather expensive, although I suppose I could open an Emigrant Direct account and leave it on deposit there until I make back the $75.
I personally have little interest in the ability to exceed my credit line with no fee, as I have more than enough available credit to charge most any business expense I would have, and if I don't have the money on hand (or enough to pay it off in at most 2 months, if it's something I have a pressing need for) for a personal purchase, I won't make the purchase. I was attracted more by the 0% on BT and purchases until 3/08.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Aug 17, 2006 8:57 am
Quote:
I received an offer ( so called pre approved) for 0% on purchases and transfers till March 2008 then 8.9 fixed thereafter.
Wow! Where do I sign up?!!? Chase hasn't rate jacked me (have a couple of BT offers with them currently)...yet.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: wierdo
Posted: Thu Aug 17, 2006 10:00 am
Board Monitor wrote:
Wow! Where do I sign up?!!? Chase hasn't rate jacked me (have a couple of BT offers with them currently)...yet.
Opt in. Sadly, the offer is only available in the mail. I just got mine last week, though, so surely they'll get around to you eventually.
BTW, it's the Rewards card, too. Not that I'll probably ever earn a single point since I'm only going to use it for BTs.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Currently Best Credit Card Offer in Industry
Posted: Wed Aug 16, 2006 6:06 pm
I received one of these offers yesterday and it does appear to be one of the absolute best offers in the industry right now. In fact, I took the offer to work to show some of my co-workers simply because it is so much better than anything I'm offering clients now. I was very tempted to get the card except for one big problem I have with it:
Since it is a World MasterCard, it really does not have a pre-set spending limit. This makes it similar to a Visa Signature card or any of American Express' Gold or Platinum cards with no limit. This is the bank's way of saying that they will not charge an overlimit fee and will never report your credit limit to the credit reporting agencies (CRAs). You still technically do have a limit, however, referred to as your revolving credit access line. This is how much credit exposure we will allow you before one of our analysts will have to personally approve any future transactions. But in case you have to go over that line, nothing derogatory is reported to the CRAs since they do not have this limit in their file.
Sounds great, right? Not so fast. Because the actual credit limit is not reported, the CRAs are forced to use your high balance in place of it. So lets say you get this great Chase World MC account with an access line of $25,000. You now responsibly only put $400 on it, but you do put this same $400 on there each and every month. As far as the CRAs know, your credit limit is $400 and your current balance is $400... you appear to be tapped out so to speak. Never mind the fact that you are $24,600 under your limit, your utilization ratio still takes a hit and your FICO plunges.
If you have low total credit lines or a higher utilization ratio already, be very prepared for a FICO hit from any heavy usage or balance transfers on a no pre-set spending card. Only MBNA (now BOA) reports Visa Signature and World MC revolving access lines to the CRAs, so you would not run into this same problem on one of those cards. Otherwise, I highly recommend that most average Joe's carry only one no pre-set limit card at any given time. You have to decide whether you'd rather have a Visa Siganture, a World MasterCard, or a premium AmEx. Only a Big Fish with a FICO of 730+, total reported credit lines of $50k+, and an annual THI of $100k+ can disregard this warning. Otherwise, be sure to check your credit report before applying for this great 0% Chase World MC offer.
The other posters are correct regarding the promotional rates, however. As long as no terms or conditions of the card agreement are broken, the bank cannot legally reprice a promotional rate (this would be called "adverse action" which is against federal lending laws). Just make sure your payments are of sufficient size, sufficiently early, and that there are no minimum retail purchase requirements (Discover card anyone?) The bank is free, however, to reprice your contract rate while you are still under the promotional rate. So it is hypothetically possible that Chase could raise that fixed 8.99% APR to 15.99% or what have you anytime prior to your 0% running out on March 1, 2008. Since your balance was not at the 8.99% rate when the repricing took effect, it is not considered adverse action and is completely legal. I'm not saying that Chase would do this, but its something to bear in mind. Always have your Plan B ready even when a great offer like this comes around.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: wierdo
Posted: Wed Aug 16, 2006 8:13 pm
Citi is claimed to report the limit on the World MC products if you fax them a written request to do so. Once I get my Visa from Chase (presuming they approve me for the Signature rather than the Platinum), I'll be asking them if they'll do something similar.
Alternatively, I could use the BT check they send to deposit most of my CL in the bank and PIF it a month later, making my high balance the credit line. Of course, with a 3% fee with a minimum $15 and max $75, that could get rather expensive, although I suppose I could open an Emigrant Direct account and leave it on deposit there until I make back the $75.
I personally have little interest in the ability to exceed my credit line with no fee, as I have more than enough available credit to charge most any business expense I would have, and if I don't have the money on hand (or enough to pay it off in at most 2 months, if it's something I have a pressing need for) for a personal purchase, I won't make the purchase. I was attracted more by the 0% on BT and purchases until 3/08.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Aug 17, 2006 8:57 am
Quote:
I received an offer ( so called pre approved) for 0% on purchases and transfers till March 2008 then 8.9 fixed thereafter.
Wow! Where do I sign up?!!? Chase hasn't rate jacked me (have a couple of BT offers with them currently)...yet.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: wierdo
Posted: Thu Aug 17, 2006 10:00 am
Board Monitor wrote:
Wow! Where do I sign up?!!? Chase hasn't rate jacked me (have a couple of BT offers with them currently)...yet.
Opt in. Sadly, the offer is only available in the mail. I just got mine last week, though, so surely they'll get around to you eventually.
BTW, it's the Rewards card, too. Not that I'll probably ever earn a single point since I'm only going to use it for BTs.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:40 PM
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