Would give me a new credit card with a $6000 limit?
Some readers might remember that I was recently paralyzed by a 0% offer. While it seemed like an excellent deal, and I have a couple of balances coming due for transfer, I was nervous about how it could affect my credit score; we would like to buy a house this year if we can reduce our debt enough. But I decided to go for it. Not only is this card 0% for 12 months, it will be my lowest interest rate, it also has no annual fee, and I can use it at Costco! (Don’t worry my fellow pf bloggers. Once the balance transfer goes on, the card gets put in a special space and doesn’t get used until its paid off or gets transferred at the end of the 12 months. And once it is paid off, it has to be paid off each month.)
It seems that while banks are refusing to lend and credit is “frozen,” it is thawing on occasion for certain customers. I have come to realize that I make credit companies salivate. Even though our total debt load is 1.5 times what we make in a year, we haven’t missed a single payment in over four years. Which means that even if it’s just the 3% balance transfer fee, the companies know they make money on me.
In other news, I also found out I was pre-approved for a Home Equity Loan….we don’t own a home. Which goes to show, you don’t have to take credit just because you’re approved for it. When they told me I qualified for a $6000 credit limit (after the shock wore off) I just thought, “Why?” I think it must be comparable to when people were told what they “qualified” for in a home mortgage. I am happy that I qualified for the card, though, as it’s an opportunity to keep my interest rates low and keep building (not necessarily using) our credit.
Apparently Mr. MT is drool-worthy too (like I didn’t know); he just received a credit line increase.
{ 3 comments… read them below or add one }
We get a lot of scary offers like this. It’s kind of funny, really. Sort of.
But we’ve been taking advantage of it. We locked in our debt at 3.99% until we pay it off. We’re not going to be buying a car or house in the near future so it’s not a big deal.
I think you’re right about the reasons behind it. We don’t miss payments and we’ve paid of a veritable s—load of debt over the last nearly three years. Something along the lines of $20k? It’s insane, really. Especially considering that most of that time we were essentially a one-income family, since my disability paid rent and not much else.
I get the home equity offers all the time, the jokes on them cause i’m $100k underwater! I just took out a new credit card the other week and was given a limit of over $14k, credit is still there for responsible people.
@Abby: It’s nice to lock in your debt and know what your payment will be. Congrats on all your pay-off. Considering your circumstances, you seriously qualify for the debt pay-off hall of fame.
@Miss M: I LOVE THAT! It’s weird for me to think of myself as responsible because I’m still paying for irresponsibility, but you are right. If you make your payments and stay smart, there is still available credit.