Re: Credit card offer, should I bite?

Posted by Phil on December 10, 2001 at 00:13:20:

In Reply to: Credit card offer, should I bite? posted by michelle (ingenue) on December 08, 2001 at 11:50:54:

Michelle,
A word of caution. You didn't say if you planned to transfer a balance, but I assume you may since you mentioned the terms of that portion of the offer. Some cards let you transfer a balance after the account is opened and others want you to list balances you want transferred as you fill out the credit application. The latter option can trap you in a situation if they decide to grant you a card, but with a limited credit line. The balances you choose to transfer may exceed the credit line Chase gives you. Then you will have two balances to pay -- the original portion not transferred and the other portion that Chase transferred to their card. They will make the transfer as soon as they decide to approve you. If you decide that's not what you want to do, it's then too late because they have already made the transfer by the time you get their acceptance letter in the mail. If you then contact them and tell them to cancel the transaction, they will but your original creditor may treat the action as a bounced-check type transaction which could cause you some problems and more than likely an immediate increase in the interest rate charged to your account.
The former option, where they give you a period of time after the card is approved to transfer balances is much better because then you will know what amount your credit line is before you make any committments.
Just my $0.02 worth. ( previous experience with Chase )

Mike

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