How do companies view....

For just about anything you want to get off your chest about credit cards.
8 posts
JSS3
Platinum Member
Platinum Member
 
Posts: 57
Joined: Sat Mar 09, 2013 12:24 pm
Location: Pennsylvania

How do companies view....

Postby JSS3 » Tue Aug 27, 2013 12:02 pm

customers who sign up for their cards to get bonuses and don't use their cards for much else...at least initially? For example, applying to a card that has 0% apr for X amount of months and spending up to the limit required to get a cashback bonus(ie spend X amount in 3 months and get X amount back). You do that but don't buy anything else on that card UNTIL all you've charged is paid back? Might charge up to $1500 to get a bonus and then pay down on that over the course of a few months. Each month you'll be paying them money, but you won't be charging anything new on it. Is that considered "inactivity"? Do they frown upon this or can you possibly get rewarded with new CLIs? You are paying on time and demonstrating responsible use of the card by paying down your limit.

To be clear---you have the money to pay all of it in full if need be, but you're utilizing the 0% APR, as well as stopping yourself from buying something new each month on every card.

I, personally, believe it's a smart way to rotate cards for those who have a lot of them. To me, you'll have something going on with all of them. There will be the card(s) you're currently charging on and others you're actively paying off.
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
(8/13) Discover IT- $2,000
(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
(10/13)Walmart Discover- 3,000


whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Aug 27, 2013 3:22 pm

It's inactivity but you're carrying a balance so you should be fine.

I think people who use 0% APR should be careful only to sign up for the card when they're thinking of taking on a loan but its not a large amount or may not meet the criteria

Example, girl comes in asking about auto loans, it's for less then 5k (we started at 7k) and she can charge it

Why not open a cc and just map out a 15month payment plan? It's about 4.5/15=$300 a month at 0 percent interest..uh yeahhhhh. Plus it's paid in full in less then two years

If you're doing it to rotate balances, just as long as you know what you're getting into..the reason why cc offer such a great apr initially is because they want you to spend spend spend..I don't know the statistics personally but I bet a lot of those do not pay off the balance they're carrying at 0 percent interest once the card's promotional APR ends, and that's where lies the gold

cashback
Centurion Member
Centurion Member
 
Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Tue Aug 27, 2013 3:29 pm

What you are describing is completely fine. If they didnt want you to utilize the 0% intro offer, they wouldnt offer it. If they didnt want to give a sign up bonus, they wouldnt offer it.

Go for it.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

JSS3
Platinum Member
Platinum Member
 
Posts: 57
Joined: Sat Mar 09, 2013 12:24 pm
Location: Pennsylvania

Postby JSS3 » Tue Aug 27, 2013 7:44 pm

whit wrote:It's inactivity but you're carrying a balance so you should be fine.

I think people who use 0% APR should be careful only to sign up for the card when they're thinking of taking on a loan but its not a large amount or may not meet the criteria

Example, girl comes in asking about auto loans, it's for less then 5k (we started at 7k) and she can charge it

Why not open a cc and just map out a 15month payment plan? It's about 4.5/15=$300 a month at 0 percent interest..uh yeahhhhh. Plus it's paid in full in less then two years

If you're doing it to rotate balances, just as long as you know what you're getting into..the reason why cc offer such a great apr initially is because they want you to spend spend spend..I don't know the statistics personally but I bet a lot of those do not pay off the balance they're carrying at 0 percent interest once the card's promotional APR ends, and that's where lies the gold


I completely agree with financing a used car on a 0% credit card for the reason you listed. I also think people do get caught up with carrying a balance by the time their intro period is up. I feel the companies hope for this and that's why they offer it to you. Rope you in this way by taking a short-term "loss" by not being able to make money off interest, initially. Then here comes the gold...especially if it's retro-active.
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
(8/13) Discover IT- $2,000
(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
(10/13)Walmart Discover- 3,000

JSS3
Platinum Member
Platinum Member
 
Posts: 57
Joined: Sat Mar 09, 2013 12:24 pm
Location: Pennsylvania

Postby JSS3 » Tue Aug 27, 2013 7:52 pm

cashback wrote:What you are describing is completely fine. If they didnt want you to utilize the 0% intro offer, they wouldnt offer it. If they didnt want to give a sign up bonus, they wouldnt offer it.

Go for it.

I figured it was ok but wondered if you're rewarded for it. Do people who do this see their fair share of CLI's? Sometimes it's known you're not breaking the rules, per se, but it's still looked down upon as doing the absolute minimum. I'm pretty sure they want you to swipe their card a lot so don't necessarily appreciate you taking advantage of the offer in that way. I've heard of stories of people being penalized for carrying balances even though it's offered to you. I've heard of examples that go both ways, honestly. Ones where the company doesn't like for you to carry a small balance and others where they penalize you for paying in full.
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
(8/13) Discover IT- $2,000
(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
(10/13)Walmart Discover- 3,000

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Wed Aug 28, 2013 9:11 am

Depends on the company -- they're not all identical. But, in general, and, as stated above, if they didn't want you using 0% or getting the bonus then they wouldn't offer it. Just keep in mind the impact on utilization as well.

cashback
Centurion Member
Centurion Member
 
Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Wed Aug 28, 2013 12:07 pm

JSS3 wrote:I figured it was ok but wondered if you're rewarded for it. Do people who do this see their fair share of CLI's? Sometimes it's known you're not breaking the rules, per se, but it's still looked down upon as doing the absolute minimum. I'm pretty sure they want you to swipe their card a lot so don't necessarily appreciate you taking advantage of the offer in that way. I've heard of stories of people being penalized for carrying balances even though it's offered to you. I've heard of examples that go both ways, honestly. Ones where the company doesn't like for you to carry a small balance and others where they penalize you for paying in full.


The Citi Simplicity I have was 18 months at 0%. I charged 4K on it (maxing it out) and planned to pay it off over the promo. 6 months into it I requested a CLI and was approved for it.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

JSS3
Platinum Member
Platinum Member
 
Posts: 57
Joined: Sat Mar 09, 2013 12:24 pm
Location: Pennsylvania

Postby JSS3 » Wed Aug 28, 2013 12:11 pm

cashback wrote:The Citi Simplicity I have was 18 months at 0%. I charged 4K on it (maxing it out) and planned to pay it off over the promo. 6 months into it I requested a CLI and was approved for it.

Thank You! This is exactly what I was looking for(examples of specific companies who'll reward vs penalize).

Of course it's YMMV but these things are good to take note of none-the-less. :)
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
(8/13) Discover IT- $2,000
(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
(10/13)Walmart Discover- 3,000



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 1 guest