Bad idea to sign up for promotional credit cards?

[Bades]

Hi guys,

Many of you probably know the website Newegg.com, and electronics online store. I've been buying from them for years. I'm looking at purchasing a TV and they have a Newegg Preferred Customer CC that I can get a 12 months no interest if paid in full. I have great credit and I know I could get approved, but does that look bad to creditors that I sign up for a CC to use it only for a promotional deal?

[disneysteve]

Are you anticipating taking out any loans soon like a mortgage or car loan? If not, it really doesn't matter. If your credit is really good, it probably doesn't matter either.

That said, why do you need to finance a TV purchase? Yes, I know it is 0% but it isn't like your savings account is paying a lot right now. I would just pay cash and not have to deal with it.

[Bades]

Yeah I have the money now so I guess it really doesn't matter.

[JoshuaHeckathorn]

I agree with DS. Just pay cash- it's not worth it for a TV. They probably wouldn't offer a very high credit limit anyway, which could hurt your CU ratio if you charge the TV and use up most of your credit limit with the purchase.

[Bades]

good idea Josh,

I paid straight cash!

[Mposibl]

Don't open any more credit lines if your credit is already good. This could actually start to hurt your scores in the long run. Cash is King! Save up and by what you need. Do not take on more debt, interest free or not

[rennigade]

OP...I have almost 40 credit cards in my name. I sign up to get free things all the time. GPS, ipod, tons of skymiles...I cant tell you the last time we paid for a round trip flight. Matter of fact there is a british airways credit card deal going on right now, if you spend $2500 in the first 3 months you get 100k skymiles, enough for a couple RT tickets anywhere in the continental US, or 2 RT tickets to hawaii or alaska. Annual fee is $95 I believe.

Even with all those credit cards, the ones with annual fees I cancel after getting the reward, my credit score is just shy of 800. I know people say how cc's ding your fico score...I have no complaints...and no debt!

[couchrobt]

I really rather to stay away from those evil plastic cards! OK, they aren't that bad. If one is disciplined enough and know hot to manage bills and payments, the plastic card can be a magic card after all. But, I would still stay away!

[naomibatac]

Actually I am quite skeptical when it comes to promotions and deals because most of the time; they are a way of making you purchase more, which leads to being heavily indebted. I believe and I agree with others that for smaller items, better purchase with cash and for those that can help build your credit score (if you need to); purchase with credit card. Also, I think 2 to 3 credit cards are enough, I find it stressful to watch over 10 to 20 credit cards. Missing a payment is not good at all.

[Mictjustin]

Credit cards don't make huge profits and spend billions of dollars per year on marketing to give free items away. Beware!
You might win here and there, but lots of people are struggling because of that scum.

[snafu]

7/27/11 VISA [largest of CC] stated 3 month profit to June 30th $1 Bllion, [$ 1.43 per share]. 59% of sales are generated in USA.

CC is mostly a convenient piece of plastic to use. It has no human characteristics like 'evil,' or 'scum.' No one forces you to sign up for a CC, no one forces you to use it but it's difficult to book a flight without it. People know they are agreeing to and responsible for paying for purchases.

[rennigade]

Just signed up for 2 more cards, the southwest one going on, $69 annual fee, after 1st purchase, get 50,000 in points. All gift cards are on sale right now. If the sale is still going on ill be able to cash them in for $625 in gift cards, ill prob just get $625 in walmart or amazon giftcards. If sale ends then the points are worth $500 in gift cards. After I redeem ill cancel the card of course.

Another was a citi card, no annual fee first year, must spend $2500 in 3 months, get 50k points, redeem for gift cards, $500 worth. Again I will probably get $500 in walmart gift cards. After redemption I will cancel.

I dont see why people dont sign up for these unless they cannot control their spending with credit cards. Citi had to pull my credit report, my score was 776.

[JoshuaHeckathorn]

Originally Posted by rennigade

Just signed up for 2 more cards, the southwest one going on, $69 annual fee, after 1st purchase, get 50,000 in points. All gift cards are on sale right now. If the sale is still going on ill be able to cash them in for $625 in gift cards, ill prob just get $625 in walmart or amazon giftcards. If sale ends then the points are worth $500 in gift cards. After I redeem ill cancel the card of course.

Another was a citi card, no annual fee first year, must spend $2500 in 3 months, get 50k points, redeem for gift cards, $500 worth. Again I will probably get $500 in walmart gift cards. After redemption I will cancel.

I dont see why people dont sign up for these unless they cannot control their spending with credit cards. Citi had to pull my credit report, my score was 776.

Nice work- the new promotion from SW airlines is a great deal at a $69 annual fee. I got it myself as well!

[imianharper]

Since it is not that essential, you shouldn't purchase it.

[Like2Plan]

Originally Posted by rennigade

Just signed up for 2 more cards, the southwest one going on, $69 annual fee, after 1st purchase, get 50,000 in points. All gift cards are on sale right now. If the sale is still going on ill be able to cash them in for $625 in gift cards, ill prob just get $625 in walmart or amazon giftcards. If sale ends then the points are worth $500 in gift cards. After I redeem ill cancel the card of course.

Another was a citi card, no annual fee first year, must spend $2500 in 3 months, get 50k points, redeem for gift cards, $500 worth. Again I will probably get $500 in walmart gift cards. After redemption I will cancel.

rennigade,
Those are some awesome deals.

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[orenwach]

Originally Posted by rennigade

OP...I have almost 40 credit cards in my name. I sign up to get free things all the time. GPS, ipod, tons of skymiles...I cant tell you the last time we paid for a round trip flight. Matter of fact there is a british airways credit card deal going on right now, if you spend $2500 in the first 3 months you get 100k skymiles, enough for a couple RT tickets anywhere in the continental US, or 2 RT tickets to hawaii or alaska. Annual fee is $95 I believe.

Even with all those credit cards, the ones with annual fees I cancel after getting the reward, my credit score is just shy of 800. I know people say how cc's ding your fico score...I have no complaints...and no debt!

I agree with rennigade - why not get free stuff when they are offering it. I probably have about 10 credit cards and i use about 3 or 4 of them regularly. My credit score is also just shy of 800, but I have gotten lots of free money over the years. When I don't use the card again, I shove it in my drawer in the folder for that card.

If there is a chance you might carry a balance, don't get the card. The interest rates will eat up any money you get from the promotions. If you always pay your balance, who cares, take the free stuff.

This is all if there is no annual fee. If there is an annual fee, cancel the card right after they allow you to cancel and still keep your rewards. Usually about 6 months but depends on the card.

[Eric80]

It may not look great but it will increase your credit score - especially if you make a purchase and pay it off straight away. As long as you dont have bad credit ratings anyway then all should be fine.