What's the most ridiculous "pre-approved" CC offer you've gotten?

[Kevin P]

As a guy with excellent credit (but who hates to use it ) I am constantly inundated with "pre-approved" credit card offers in the mail. Before tearing them up and using them to light the wood stove, I always like to read the fine print to see what kind of "catches" there are, and sometimes I've seen some offers I wouldn't touch with a 10 foot pole.

Actually, most of the ridiculous offers come in my wife's name, since she has a limited credit history (only the mortgage which we both signed) and has never had a credit card. I usually get a chuckle when I read the terms on these beauties.

Last night she got one, for a "Diamond" Visa Card. Of course, "Diamond" makes it sound better, sort of like "Platinum" but without the prestige or benefits. It has no annual fee, no deposit (like some cards offered to those with a limited credit history), and seemed like a nice card, until I got to the catch. And what was the catch? A 30-plus-percent APR! Youch! This makes the Sears card look like a downright bargain!! I didn't think the law allowed such high interest rates.

Another thing I've seen on a lot of card offers (including the Platinum ones I get offers for) is, if you miss a payment (or two consecutive payments, depending on the card), the interest rate can jump up to over 20-25%.

The more pre-approved offers I look at, the more happy I am to have a $500 limit card that I pay off in full every month. How come I never get pre-approved offers for that kind of card?

KJP




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[Lexman]

Well, the first rule of credit is, if you want to keep your A+ credit rating, your never late for a payment. to get the best cards, you actually need proven credit A+ credit. That's why I carry 2 cards, one with a 7.9 rate, and the other with a 9.9 rate. I actually used to be of the school of thought that I never carried a balance. How I wish, I had never changed my philosophy! But then, I wouldn't have the theater I have today, were it not for my credit.

But the bottom line is, I am still paying for it and will be for quite some time. Ouch.

I have gotten zero percent offers. Of course, only for the introductory period. Come to think of it, it's the zero percent loans through my local A/V company that got me in this mess to begin with!

Lex

[Kevin P]

Well, the first rule of credit is, if you want to keep your A+ credit rating, your never late for a payment.

So true, and I haven't missed a payment in years. However, as they say, sh*t happens, someone can forget to mail a payment, or it could get lost in the mail, or the CC company posts it to the wrong account, and bammo! 25+% interest rate.

What's even worse, is some offers I've seen not only raise your rate if you miss a payment on that card, but if you miss a payment on any other credit obligation. You could have two credit cards, one with a 9.9% rate that you carry a balance on, and a second card (another bank) you pay off in full every month. The payment to the second card gets lost or mis-posted, and a month or two later your 9.9% rate on the first card jumps to 25%. Basically, as soon as your credit rating gets one little chink in it, they slam up your rates to astronomical levels.

As I mentioned, I just look at the "pre-approved" offers for the chuckle factor. Then I tear them to shreds. One of these days I'll do that "opt out" option that the credit reporting agencies offer to cut back on these offers, since I won't be accepting one until heck freezes over.

KJP




Official Computer Geek and Techno-Wiz Guru of HTGuide - Visit Tower of Power
My HT Site