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View Poll Results: If you earn under $20,000 a year, and got a $10,000 credit line from credit card company...what woul
Use it for education, college, tech school? 0 0%
Buy a decent used vehicle? or Motorcycle, transportation? 0 0%
Just use it for groceries and other essentials? 1 10.00%
Use it to pay off other debt...debt consolidation? 0 0%
Emergencies only? 6 60.00%
Use it to start a business you've always wanted to open? 0 0%
Just a one time splurge on fun electronic toys you've always wanted? 0 0%
Set it aside and don't touch it? 3 30.00%
Voters: 10. You may not vote on this poll

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Old 01-20-2012, 04:25 PM
 
Location: Boise, ID
7,945 posts, read 21,833,861 times
Reputation: 9003

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I don't remember opting out, but I haven't seen a credit card offer in years, and my score is over 800, so I should be a prime target. I'm guessing I opted out years ago and have just forgotten.

Oh, and my mom was getting so many she decided to do an experiment. For one month, she saved every offer she got for a preapproved credit card. Her score is also over 800, and she got a TON of offers. After 1 month, she added up how much she could get, if she were to apply for them all on the same day, and then pull the maximum cash allowance from each. It was somewhere around a quarter million dollars. Pretty crazy in my opinion.
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Old 01-20-2012, 07:24 PM
 
1,589 posts, read 1,772,016 times
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Quote:
Originally Posted by Lacerta View Post
I don't remember opting out, but I haven't seen a credit card offer in years, and my score is over 800, so I should be a prime target. I'm guessing I opted out years ago and have just forgotten.

Oh, and my mom was getting so many she decided to do an experiment. For one month, she saved every offer she got for a preapproved credit card. Her score is also over 800, and she got a TON of offers. After 1 month, she added up how much she could get, if she were to apply for them all on the same day, and then pull the maximum cash allowance from each. It was somewhere around a quarter million dollars. Pretty crazy in my opinion.
It's doubtful she would get anywhere near that in credit limits. What she was suggesting is known as an app-o-rama. Credit pulls are real-time. By the time she pulled and got approved for the first card, the second card would know about it. Each pull would drag her score down a few points and by about the 7th or 8th app her score would be down in the average range. She could keep apping with less and less success. By the time she started actually receiving the cards and making them usable the credit lines would start appearing on her reports as active trade lines. This would greatly reduce her score (due to average age of accounts dropping) preventing any new apps from being approved.

She would probably succeed in getting a third of the credit limits she estimated based on what she figured the first couple would be. now figure that most credit card companies limit your available cash advances to about a third of your available limits... You can see their exposure is not 1/4 million dollars.

In my case I owe zero on my 16 credit cards, my total available credit is over $160k. My income is around $60k/year. My credit scores are between 750-790 depending on the bureau. I have gotten this by using the slow and easy approach. 5 years ago I had an average score of 600 and total limits of $1000.

Do I need these limits? Not really. But each card was carefully considered as to how it could best benefit me. Be it cashback rewards, travel perks or interest free loans I could earn interest on in a high yield checking account.

In those 5 years I have paid absolutely zero interest and received thousands in cashback and other rewards. I can use my cards concierge services to find me tickets to sold out shows, I can enter airline lounges for free, I get free car rental insurance. I get price protection (if I buy something that goes on sale next week I get a rebate). I get greatly extended warranty's on big ticket items (usually double manufacturer warranty). And best of all, if I'm a victim of fraud, it's the credit card companies money being hacked, not mine. You can bet your britches they will resolve the issue faster then if it was YOUR money stolen out of your checking account when you used your debit card.

Yeah, properly used, credit cards are pretty good...
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Old 01-22-2012, 01:52 PM
 
Location: Florida
3,359 posts, read 6,233,849 times
Reputation: 1884
Quote:
Originally Posted by clutchcargo777 View Post
Credit card companies DO check your credit before sending pre-approved offers. They pull a PR (promotional) inquiry which is a soft pull (doesn't hurt your credit). You can verify this by looking for "opt out" language on the offer. Opting out prevent companies from doing these soft pulls and doing this for just one credit bureau will cause the other two to opt you out as well.

What these PR pulls don't tell the creditors is anything about your income. This is usually why you get denied when you apply. They ask about income and take that into consideration with the info they already have.
I forgot to subscribe to this thread...so I lost it for a minute...

Anyhow back to credit card company sending offer...

I actually want the offer as I'm trying to repair credit...but thing is...I don't want to be led on, just to get turned down...you know, give them all the information...just to be denied...

Do credit card companies extend credit to folks with less than stellar credit?

I mean will they approve you, even if you have some minor flaws in the past...maybe an unpaid balance or something?

What has been your experience on that...
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Old 01-22-2012, 02:00 PM
 
Location: Northern Va
1,100 posts, read 1,937,156 times
Reputation: 571
They offer the credit to ones who need it the least..The more you respond to these things the more chances you are of getting turned down..It all has to do with your debt/income ratio.
I have perfect credit and get bombarded with offers that i dont need.
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Old 01-22-2012, 02:05 PM
 
Location: Florida
3,359 posts, read 6,233,849 times
Reputation: 1884
Quote:
Originally Posted by elnina View Post
Oh, they don't check it, but hope that when you apply, and have a bad credit or low earnings, they give you a card with very high interest rate.
They make most money on interest.
I just read the back of the offer...and I'd probably get the minimum of $500.00...

What good is a $500.00 credit limit these days?

Better to just pay cash if that's the case...
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Old 01-22-2012, 02:11 PM
 
Location: Censorshipville...
2,443 posts, read 5,863,991 times
Reputation: 1231
Quote:
Originally Posted by Time and Space View Post
I just read the back of the offer...and I'd probably get the minimum of $500.00...

What good is a $500.00 credit limit these days?

Better to just pay cash if that's the case...
Got to start somewhere. I started off with a $500 credit card limit when I was in community college with a job paying under the table. So for all intents and purposes I really didn't have a job on paper, yet they still gave me a CC. After a while, they upped my limit to $1000, then $2500 etc etc. Once they see you're being responsible with credit, they try to sink in the hook and saddle you with higher credit limits.
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