Do People Actually Pay This?

[firstdown]

OK, so the wife wanted a new washer and dryer so we went to Sears because they had the ones she wanted on sale. The bad news was it still cost freaking $1,675 and that was a good price on them. What gets me is they gave us 10% off if we opened a credit card with 12 months no % so I figured what the heck and opened up a card. It came in the mail today and the interest rate is 25.24% and I have a credit rating over 800. So I then checked my personal Visa and notice it jumped a yr. or so back to around 21%. I think they want me to drop that one because it pays points and I pay it off each month paying no interest. Is this common now days with all credit cards?

[BleedBurgundy]

Originally Posted by firstdown

OK, so the wife wanted a new washer and dryer so we went to Sears because they had the ones she wanted on sale. The bad news was it still cost freaking $1,675 and that was a good price on them. What gets me is they gave us 10% off if we opened a credit card with 12 months no % so I figured what the heck and opened up a card. It came in the mail today and the interest rate is 25.24% and I have a credit rating over 800. So I then checked my personal Visa and notice it jumped a yr. or so back to around 21%. I think they want me to drop that one because it pays points and I pay it off each month paying no interest. Is this common now days with all credit cards?

Pretty much. This is why I stick with American Express... no interest. Yeah, you pay a $100 or whatever annual fee, but you never get that interest. About 2 or 3 years ago, credit card companies really started rate-jacking people. We had a card through Citi that was something like 8% interest. Then I got a letter saying the interest was going up to 16% and we hadn't had any issues (drop in credit rating, late payments). So we paid it off and cancelled it. That shit should be criminal.

As far as Sears goes, that's how we buy our appliances. 0% is nice, but I would hate to miss a payment. They are accruing interest that whole time, and if you miss one, it all comes back. Bastards.

[firstdown]

Originally Posted by BleedBurgundy

Pretty much. This is why I stick with American Express... no interest. Yeah, you pay a $100 or whatever annual fee, but you never get that interest. About 2 or 3 years ago, credit card companies really started rate-jacking people. We had a card through Citi that was something like 8% interest. Then I got a letter saying the interest was going up to 16% and we hadn't had any issues (drop in credit rating, late payments). So we paid it off and cancelled it. That shit should be criminal.

As far as Sears goes, that's how we buy our appliances. 0% is nice, but I would hate to miss a payment. They are accruing interest that whole time, and if you miss one, it all comes back. Bastards.

The only reason I open the credit card was to get the 10% off which was around $165 with no interest for 12 months. I only have one other credit card with a zero balance so I never pay attention to what they charge. I'm going to pay the Sears off in full so I don't screw up and get hit with those high rates.
I feel for people who pay these rates.

[mlmpetert]

I got pretty good credit too, and used to get credit card offers non stop. I got a Chase business card offer one day and said well i maybe ill try and make up a cool business name and came up with Mother Fxxxxing (non censored version) Redskins. They shortened it for me to MF Redskins and gave me a pretty crappy spending limit at first.

I just looked it up and my apr is 9.99%, but ive paid it off in full since ive had it. The rewards were the best by far when i first got it (before it became ink), and they are still very good. I get 3% back on gas, restaurants, home improvement stores, office supply stores, and 1% back on everything else. Its the only card i use now and have suggested it to friends and family. I thought you had to have a business to get it, which isnt true. Also something else that is awesome about it is you call up push 1 or something and pretty much get a guy on the line. Much less waiting then any other card ive ever had. Plus they have never tried to sell me some bs insurance product at the end of the phone call.

https://applynow.chase.com/FlexAppWe...ID=&PROMO=DF01

[saden1]

The whole merchant credit cards scheme is a big time money maker. They know most sane people will pay them off as soon as possible but there are those 10% to 20% of customers who don't pay on time or don't know the rules to the game. Also if you miss one payment the interest rate jumps up immediately so they are betting on that happening to some people. If people pay on time, they get their money and they have moved items...if they forgot to pay or can't pay they charge higher interest and get most of their money back...if they don't get their money back the send people to collections and if that doesn't work they they write it off and pay less taxes. It's an all around win no matter what!

I use to have a 7.9% rate about a year and half ago...my credit card company jacked up my rate to 13.9% and I called them up to explain...they said prime rate went up and I said nice doing business with you. Needless to say I stopped using the credit card and paid off most of it.

[firstdown]

Originally Posted by saden1

The whole merchant credit cards scheme is a big time money maker. They know most sane people will pay them off as soon as possible but there are those 10% to 20% of customers who don't pay on time or don't know the rules to the game. Also if you miss one payment the interest rate jumps up immediately so they are betting on that happening to some people. If people pay on time, they get their money and they have moved items...if they forgot to pay or can't pay they charge higher interest and get most of their money back...if they don't get their money back the send people to collections and if that doesn't work they they write it off and pay less taxes. It's an all around win no matter what!

I use to have a 7.9% rate about a year and half ago...my credit card company jacked up my rate to 13.9% and I called them up to explain...they said prime rate went up and I said nice doing business with you. Needless to say I stopped using the credit card and paid off most of it.

Saden I bet they get more then 20% with that interest rate. I was going to use their money and pay it off in payments but after looking at it again I decided not to even give them the chance of me making a mistake and sent them the full amount. I would also bet there are a good % of people who only look at their payment and pay these high interest rates so they can have their toys.

[GMScud]

CC companies are evil. My wife and I carry virtually no credit card debt month to month. We currently have a few cards that are still under the no interest for the first 12 months or 18 months window. When those windows close, cancel the card, find another zero interest introductory offer. We treat all of our cards like they're an Amex and pay them off in full each month. We're trying to buy a house next summer, so we're being crazy careful with everything credit related.

I'm sure in the future when I have house-related expenses and kids, carrying no credit card debt won't be an option, but for now we simply use them as a tool for building/maintaining good credit.

[MTK]

I don't use store cards anymore, too much of a hassle.

[mredskins]

I only keep one store card and it is Sears, simply for the 0 interest they usually run. So say my dishwasher bites the dust or another applaince I take advantage if the card that way. Otherwise everything goes on Amex.

Amex really is the way to go with points and all their perks. If you don't have one look into it.

[firstdown]

Originally Posted by GMScud

CC companies are evil. My wife and I carry virtually no credit card debt month to month. We currently have a few cards that are still under the no interest for the first 12 months or 18 months window. When those windows close, cancel the card, find another zero interest introductory offer. We treat all of our cards like they're an Amex and pay them off in full each month. We're trying to buy a house next summer, so we're being crazy careful with everything credit related.

I'm sure in the future when I have house-related expenses and kids, carrying no credit card debt won't be an option, but for now we simply use them as a tool for building/maintaining good credit.

If your buying a house you better watch switching from card to card to get 0 interest. Those credit checks for those cards drop your credit score. You should also get a copy of your credit history and make sure you don't have any open credit cards you thought where closed and close out any you don't need or use.

[mredskins]

Originally Posted by firstdown

If your buying a house you better watch switching from card to card to get 0 interest. Those credit checks for those cards drop your credit score. You should also get a copy of your credit history and make sure you don't have any open credit cards you thought where closed and close out any you don't need or use.

I agree I was going to say the same thing. Every time you even inquiry about a new line of credit it affects your score. PLUS I have one MAstercard I opened when I was 18 it has no balance but it gives me a great history of credit.

[mlmpetert]

Originally Posted by firstdown

If your buying a house you better watch switching from card to card to get 0 interest. Those credit checks for those cards drop your credit score. You should also get a copy of your credit history and make sure you don't have any open credit cards you thought where closed and close out any you don't need or use.

I wouldnt close out any credit card you dont need and use, unless youre going to get hit with some sort of inactivity fee.

If you have access to excess credit that’s a good thing on your credit score. Part of the calculation is based off of available credit vs. credit actually used. So lets say you carry a 500 balance on something youre paying off on your favorite (cheapest) credit card with a limit of 1000. Then you have a credit card that you don’t use (has a high rate) but also has a limit of 1000. So the amount of credit youre using vs. how much you have available is 1 to 4. If you cancel that one card you don’t use your ratio drops to 1 to 2 and you now appear more extended then previously. It may not be worth signing up for a new credit card just to up your ratio and available credit (especially within a year of major financed purchase), but its almost always a bad idea to cancel a card that you don’t use but helps your ratio and subsequent score.

[GMScud]

Originally Posted by firstdown

If your buying a house you better watch switching from card to card to get 0 interest. Those credit checks for those cards drop your credit score. You should also get a copy of your credit history and make sure you don't have any open credit cards you thought where closed and close out any you don't need or use.

I don't jump from card too very often. I've done it once or twice a year for the last 4-5 years. We only have 4 total credit cards (one of which is a store card). The only way credit inquiries can drag down your score is if you have several in a very small window of time.

I really learned a lot about credit during my stint as a mortgage broker prior to the housing bubble bursting. One of my best friends is still in the industry, and he has access to credit software for work. Any time I want to look at our detailed credit report, I just give him $15 for the fee, and he can pull it for me.

[GMScud]

Originally Posted by mlmpetert

I wouldnt close out any credit card you dont need and use, unless youre going to get hit with some sort of inactivity fee.

If you have access to excess credit that’s a good thing on your credit score. Part of the calculation is based off of available credit vs. credit actually used. So lets say you carry a 500 balance on something youre paying off on your favorite (cheapest) credit card with a limit of 1000. Then you have a credit card that you don’t use (has a high rate) but also has a limit of 1000. So the amount of credit youre using vs. how much you have available is 1 to 4. If you cancel that one card you don’t use your ratio drops to 1 to 2 and you now appear more extended then previously. It may not be worth signing up for a new credit card just to up your ratio and available credit (especially within a year of major financed purchase), but its almost always a bad idea to cancel a card that you don’t use but helps your ratio and subsequent score.

Good post, and very true. What I do is as my 0% introductory rate offers are nearing an end, I find another credit card with a similar or higher limit with a fancy intro offer, open an account, and subsequently close the card with the expiring 0% offer. That way when I close one card and open another, my ratio either stays the same or gets better, depending upon the limit of the new card.

[InsaneBoost]

Fell for the old credit card crap huh? They try to pull that crap with me ALL THE TIME, whether I buy clothes at JCPennys or whatever the hell that place is or tools or whatever. Then they look at me crazy because I won't "save" in their eyes.

GTFO outta here, I know their interest rates.