Is credit returning?

Is the direct deposit their lingo for a cash advance? They usually charge outrageous interest rates on all cash advances. Can you say which card it was?

If it sounds too good to be true, it probably is. I'd read the fine print very carefully on this one. I'll bet you could really "step in it" if you didn't know the rules. These banks are used to usurious interest rates on this sort of thing; can't imagine they'd be offering 0% without s o m e hook.

waverly for some reason they dont consider the direct deposit a cash advance which is shocking. So i just give them my check routing number and they zap as much in as I say up to the limit and its intrest free for first 12 months then goes to 11 percent. I will tell you the bank as soon as i get approved. To top it off I get 2 what they call billing holidays, which I had never heard of. If I dont feel like paying them for the month I just cal them and tell them and there is no penalty. First time I got a new card in about 7 years but this seems like a very sweet deal. I have 760 score

Yeah, let me know when you are approved...seems like a good deal (although I am sure a deal that a lot of people could get themselves in trouble with).

I stopped opening all of the offers in the mail a few months ago, as it had become overwhelming, so I haven't looked at anything recently.

waverly i will let you know as soon as i am approved. Only reason i want to wait is that they said one of the reasons I was not approved over the phone and it will take up to 30 days is the popularity of the offer.

DRD I am a lawyer and I read the fine print twice. As long as you dont miss a payment it looks like a very sweet deal

Check for one-time percentage-based fees for balance transfer (or whatever they care to call the transfer -- it's all the same unsecured debt). Also check for fees for "billing holidays", and consider that if you didn't believe in such magical phenomena, you might not have to consolidate your debt.

Please report back -- credit card companies are ceaselessly amusing in their funny shenanigans.

-and if the Post Office loses your payment?

alanhart its a 3 percent fee for the balance trasfered which is standard. Still 3 percent for a unsecuritized as good as cash loan for 12 months? I will look at the billing holiday fine print better but I dont intend on using them anyway. I have never seen that feature on a card.

drd i pay may bills online and see it confirmed as paid.

American Express just crushed the numbers also looks like credit is returning for now. I am still bearish on RE

bank of america did the same thing for a friend of mine, dumped $100k into his checking account 0% interest for 12 months, I know hard to believe.

Lots of offers coming my way lately as well as I stated on another thread Discover just sent me a similar offer 0% for 6 months on purchases, 0% on balance transfers for 1 year with a 3% transfer fee.

keith I guess with Fed Funds at zero the its all profit for the banks. If you have good credit the money seems to be there right now

"bank of america did the same thing for a friend of mine, dumped $100k into his checking account 0% interest for 12 months, I know hard to believe. "

Oh my god, me too! I did the same thing.

"I just called for a Platinum credit card offer I got. They are offering 12 months with no intrest and I figured I would consolidate some cards. I asked some questions about the card 0 percent for 12 months on balance transfers and direct deposits. I had no clue what they meant by direct deposits. I was shocked to learn that they will just put the cash in my account. I applied for it and they are getting back to me within 30 days. Seems like a reel sweet deal to me no?"

I get all the same 0% interest stuff.

The difference is... last year, it cost me $25 to transfer $75k.
Now, they want 4%.

If you pay it off in 3 months, thats essentially a 12% interest rate.

When they get the good ones back, let me know.

I agree re:transfer fees. Glad I read the fine print as I was going to transfer a balance to the discover card offer, then passed because of the TF.

Not saying this is a good thing or deal, but quite a reversal from the Spring when they were reducing credit lines of triple A clients etc...

they didn't touch my credit lines, and I have probably $1 million across my credit card limits (5-6 cards with $100-150k each, among others). I don't really keep balances, but I use the cards for a lot of spending.

BUT, all my freebies have been taken away.

All the places with the cash back with like 5% on certain things, they've been taking those away. They're changing terms left and right.

I figure the bigger one is actually corporate credit.... crain's is reporting, that at least in NYC, its still pretty fing horrible.

mortgage lending is way down. they need some new suckers to join the credit frenzy. they're hoping that unemployment has peaked and you won't lose your job and become another credit statistic, and will replace someone who has become one.

just a way of reengineering the numbers. fresh blood makes the default rates look much better.

10022 - I have been told that having that sort of a spectrum of high limit cards - even if none of them carry a balance is damaging to yur overall credit profile. Can you comment? Also how does one go about collecting that many cards with limits that high in the first place?

Liquid,
You get those limits by making big purchases and paying them off quickly. The increase the limits so you'll keep a balance for a month or two and they'll make some coin. Otherwise, they're just your mom, lending you what you need.

"10022 - I have been told that having that sort of a spectrum of high limit cards - even if none of them carry a balance is damaging to yur overall credit profile. Can you comment? Also how does one go about collecting that many cards with limits that high in the first place?"

Not really.

Actually, its the opposite in many ways. Having a lot of credit in total can hurt the new limits they'll give you - but I've actually *not* seen that happen, they keep giving me - but, more importantly, having limits you don't use adds dramatically to your score. They love to see lots of unused credit, it goes into the score as "well managed". The worst is to use up 90% of your credit limit all the time. They don't like that. My credit numbers are freaky good (got checked recently)... knock on wood.

As for building the limits, I started in college, always asked regularly for credit increases... and I've always spent good amounts on the cards. Then I found once you got one card up to $25k, another bank was willing to give you $50k. The more credit I was given, the easier it was to get more.

Of course, I always paid my bills on time, thats a lot too.

Interestingly enough, just started reading this week's Crain's, and one of the front page headlines...

"Bank's credit shock: Part II: Biz Lending tumbles as commercial loans sour at alarming clip".

The line that floored me... according to a Federal Reserve survey last week, total loans at commercial banks have dropped at an annualized rate of 19% over the past three months, while loads to business have fallen at a 28% pace."

Doesn't look like much of a recovery there, things seem to be getting significantly worse...

it is not good to have cards with high limits if you want a mortgage. On my amex plat I had no limit in theory but If i was about to make a big purchase I would call them first to make sure it would go through. They just changed that about 3 months ago and put a limit on it to reduce there own risk i think.

"The line that floored me... according to a Federal Reserve survey last week, total loans at commercial banks have dropped at an annualized rate of 19% over the past three months, while loads to business have fallen at a 28% pace.""

don't read too much here, as part of the drop is driven by big companies switching towards the bond mkt. for more accurate credit conditions you need to look into banks lending to mid and small companies (take out the big companies) cause in general they don't have the bond mkt to borrow from.

> it is not good to have cards with high limits if you want a mortgage.

Money magazine and all the other places that write about it say the opposite.
Its not good to have cards with high balances relative to limits...

10022's statements are not entirely true.
Having huge open and available credit limits can and often does hurt your credit worthiness and credit ratings. Of course, with his admitted $1 million available credit, it would not hurt him if he is a high earner, probably around $1 million + per year and spends and pays off each month approximately $25,000/month combined on all cards.

But if you are not a high income earner, having access to that much credit is seen as a risk.

Not sure by who, because my credit score is awesome, and they keep giving me more credit.

again, I follow the money magazine credit guidelines, not what folks say on message boards.

nyc the more credit they you have access to the more risk the banks consider you when you go to get a mortgage. Thats a fact! I was surprised by some of the questions they asked me when I applied for the card. They wanted to know how much my rent is and since I live with my GF they wanted to know how much she makes. Why would they care about those 2 things? Also was it wrong of me to inflate my income when they asked for it? I figured everybody does that

"Having huge open and available credit limits can and often does hurt your credit worthiness and credit ratings."

This absolutely isn't accurate. High limits that are not used RAISES your credit score.

"Of course, with his admitted $1 million available credit, it would not hurt him if he is a high earner"
Irrelevant... income isn't factored into the credit score.

And, as I said, I have a very high credit score (I don't know the number because I just get the free report, but last two folks who had to check said 'whoah' basically).

"nyc the more credit they you have access to the more risk the banks consider you when you go to get a mortgage. Thats a fact!"

No, its not. Its a generalization that is at least partially untrue.

" I was surprised by some of the questions they asked me when I applied for the card. They wanted to know how much my rent is and since I live with my GF they wanted to know how much she makes. Why would they care about those 2 things?"

Because they want to know your income can cover payments.

Not sure what that has to do with how credit scores are calculated.

As I said, this is pretty typical advice from folks who actually know the credit score formula:
http://articles.moneycentral.msn.com/Banking/YourCreditRating/7FastFixesForYourCreditScore.aspx

"Lenders like to see a big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help."

And, this part says the "it hurts your credit score" claims are actually backward:
"Your scores might be artificially depressed if your lender is showing a lower limit than you've actually got. "

This isn't the best article, just the first I found. Money does a better roundup.

But the claims made that unused limits hurt credit scores just isn't accurate.

Hell, its one of their notes mistakes:

"4 other credit mistakes
Other actions to beware when you're trying to improve your scores:
Asking a creditor to lower your credit limits. This will reduce that all-important gap between your balances and your available credit, which could hurt your scores. If a lender asks you to close an account or get a limit lowered as a condition for getting a loan, you might have to do it -- but don't do so without being asked."

nyc you are either one or the other here

1- never applied for a mortgage

2- have a couple of million in liquid cash assets

Assets don't affect your credit score.

Again, the initial claims simply aren't correct...

nyc no but it does have an effect on the amount of money the banks will loan you. Having such large lines of credit def. effect how much the banks will loan you on a mortgage. You are 100 percent wrong on that

"they didn't touch my credit lines, and I have probably $1 million across my credit card limits (5-6 cards with $100-150k each, among others). I don't really keep balances, but I use the cards for a lot of spending."

And we wonder why we're in the economic mess we're in today.

$1 million in revolving credit lines is absolutely insane. The old formula for consumer credit USED to be a maximum credit line of 10% of the consumer's gross annual income. When they boosted it to 50% in the '90s, that's when the trouble really started. Now we've got people walking around with credit cards that can easily be 200% to 300% of their annual income.

Either nyc10022 is lying, or she makes at least $5 million/year. And I'd even call BS on the $5 million/year, because people in that income bracket have access to far more sophisticated financial tools than credit cards.

The part you are missing is, I've had banks say "if you want this loan, reduce that limit over there". But most don't, they love the high credit score.

> Either nyc10022 is lying, or she makes at least $5 million/year

sorry toots, its neither (nor have I claimed I made that to the credit card companies).

As I said before, my cards do get a lot of use, though... (and are then paid off). I have a very high credit score because of it.

> people in that income bracket have access to far more sophisticated financial tools than credit
> cards.

What are these magical tools?
I do have a centurion card... and I have one of those premium wealth managy thingies.

But nothing beats my 2% cash back cards....

nyc10022, I'm saying that seven-figure earners typically:

a) don't NEED multiple credit cards because they don't need to carry balances, and

b) have lines of credit available to them at more favorable rates and terms than any credit card could offer.

I'm not quite sure you know what you're talking about.

> a) don't NEED multiple credit cards because they don't need to carry balances, and

I don't need to carry a balance, correct... but I LOVE multiple credit cards because some pay much better rewards. And it depends on the what I'm buying (the percentage can change). My main card right now pays be 2% cash back. But then I use certain cards for specific categories. My black card is used for travel, because the benefits rock, for instance. And I have different cards just to account for different types of expenses.

I don't NEED these things, but I've found that having little money, you want lots of credit cards to afford things, then you get a little money, and you need fewer, but if you get real money multiple cards benefits you again.

And, I've carried a balance simply because I was getting 0% interest ($25 fee) and I banked the $100k in my ING account. So, the no balances thing isn't quite right.

"have lines of credit available to them at more favorable rates and terms than any credit card could offer."

Again, I ask you, what magical tools? This is starting to sound like those "the rich have all these tax shelter" stuff folks who do't have money say. What magical tool offers below 0% rates?

I have higher-end brokerage accounts with fancy names, and they offer me better margin rates and some interesting cards, but nothing beats the 0%.

Fact is, its smart usage of these "middle-class" offers that helped me get to the point I was not longer in the middle class.

"My black card is used for travel, because the benefits rock"

For the $5000 initiation fee and $2500/year annual fee, they'd better.

i think plat cards have the same benefits as the black for travel and i pay 400 a year for that

They pretty much do have the same benefits.

My Amex platinum card costs me $0/year.

fidelity account?

No. Special deal.

how did you pull that?

costco cashback amex cards the best...and theyre green...golddigger repellent...or leaddigger as the case may be

spend in the lo hundred k's for equipment for my business--great cashback
obviously never in my life a balance--zero debt for many years--
credit is another form of slavery--malcolm x

what tools do the extremely wealthy have that work in lieu of credit cards...an assistant with a credit card who follows them around and pays for everything? obviously you arent referring to credit...no wealthy person would ever carry a balance

> I think plat cards have the same benefits as the black for travel and i pay 400 a year for that

I had a platinum card first, and, short answer, not even close....

If you travel a lot, it can actually be cost-effective.

Let's just say I "dated" an Amex senior VP back in the '80s. As a gift to me, he promised to "take care of things" so I'd never have to pay another fee to Amex. True to his word, I haven't paid an annual fee since 1988. I don't know how he did it, but he apparently took care of things for good, since he left the company back in the mid-'90s.

oh and an mc and amex for bus and the same for pers--who want a wallet full of cards?

> oh and an mc and amex for bus and the same for pers--who want a wallet full of cards?

Who says they all have to be in your wallet? I only have 3-4 on me at a time.

I have a separate travel wallet, which also includes my gambling comp cards and freebies for airlines and upgrades and such.... gift from amex with the black card.

thats awesome! I got my first year free and I have paid for it since. I might tell them I dont want t pay the fee this year since they cut my credit limit on it.

nyc what does the black card have for travel that plat does not?

biggest one for travel for me is... upgrades up the wazoo.

you get autostatus on a bunch of the airlines and hotels and such. With airlines, its not just the regular 25k mile stuff, you get 2nd or third level, so you pretty much get an upgrade if there is a seat. Hotels like starwood, they just give you the best room no matter what you paid. I save a bunch with the exec lounge and the free food and such, as well.

Now, yes, you can just fly one airline and use one hotel and work it, and maybe get there. But I love that I can pretty much pick whatever flight and hotel. works best, and I'm covered. Its such a pleasure not having to be like "no, I don't want that convenient flight, I need to fly delta".

The "fancy" stuff, the concierges and the free international phones and that stuff is fun to play with, but the not having to deal with airline nonsense is big.

plus you, of course, get the better travel agents (not to mention concierges that have gotten me some pretty cool stuff)
and free companion tickets (more than platinum got me)

and free nights at some hotels (like BOGO)

I dont know nyc10022............the 2 guys I know who have black cards dont care about getting extra peanuts at the airport lounge. They just have that card to get laid.

like i said green is golddigger repellant

"I dont know nyc10022............the 2 guys I know who have black cards dont care about getting extra peanuts at the airport lounge. They just have that card to get laid."

Well, I was asked about the TRAVEL benefits...

But, yes, overall, that is a pretty big perk if you can't get laid yourself...

and, btw, an upgrade on a west coast flight can be worth 500 or 1000 peanuts...

"They just have that card to get laid."

Hookers take AmEx?

Nycmatt r u gay? Not that it matters but your boyfriend wants to know.

And yes hookers and strippers take Amex, just don't go off an deny the charges, it's gets embarrassing.

Is there a black Amex with kids in tow? Cause I'd need that for the kiddie upgrades and the nanny.

nycmatt is so full of shit that he doesn't know whether he's coming or going.

I have lots of unused upgrades on American (lifetime gold closing in on lifetime platinum). I never use them except for short flights.

When I fly from NYC to LAX or SFO, which I do often, I don't want to risk not getting an upgrade, so just buy Business Class (First not necessary in 3 class cabins).

I keep an AmEx Platinum Card for the hotel upgrades. For instance, I got an upgrade from a $700/night suite at the Beverly Wilshire to a $1,500/night suite, for 3 nights. In my mind that paid for the $500 year fee.

You also get $100 or so per day in free breakfast etc everywhere, or spa credits. (and at the Beverly Wilshire, $100 barely covers breakfast for 2).

Mostly I use an AA Platinum AmEx, which gets me 125% miles on AA, I just want to get to the 2 million miles for lifetime Platinum AA.

Nothing beats the perks from being a NetJets member, though.