Does anyone know what does Visa penalty purchase 17.74 % mean?

Question

I just received a pre-approved Visa credit application, and was about to put it in the shredder when I thought to read it first.

At one point in the contract it says credit line: up to $5000, at another point it says if I meet the all the requirements I will receive an account with a line of credit of at least $300. Question which is the amount I that I will be granted to use?

At one point it says APR is 19.99% , but at another point it says APR will not exceed 29.99%. How do I know what rate I will be charged?

I have read the contract several times and my head is swimming. Should I proceed to the shredder? Thank you.

Answer 1

Why do you think about all that?

Don't apply for this card. Put everything in the shredder.

Save your money and pay cash.

:-)

Answer 2

Understand this: Credit card companies can legally charge you almost any interest rate they want. They can raise your rate if you pay another debt late or if they think you have too much or too little open credit or if they think you have the taco sh**s. I'm serious! There is NO VALUE whatsoever in applying for one, nevermind actually believing they will let you keep that low intro. interest rate. Credit cards are snakes...they bite. Some have even been known to purposefully NOT credit a received payment, just so they have a reason to give you when they raise the rate. Please shred this & all other credit card offers you receive. There are a phone number & an address on the back of them to call/write to be removed from those stupid pre-paid offers. I did it about a year ago. My junk mail volume went down by 30%+! Before they finally took my name off, I had fun filling out the offers w/smart-aleck info. & sending it back w/whatever else (like scrap metal) would fit in their generous prepaid postage envelopes. (Dave Ramsey calls it, "Send junk mail, get it back at your expense.") It was a blast, but getting NONE is better.

I live w/o borrowing, you can, too. See the website below to find out how to get control of your money. Lots of free podcasts of Dav'e radio show & other informative & fun stuff.

Answer 3

Yes. Shred it.

Some cards charge wicked setup fees that eat up $260 of the first $300 limit you get. And $300 is all you can count on being offered.

The normal rate is probably 19.9%. If you ever miss a payment, on this card or any other, they'll charge you 29.9%. Or that 29% could be the highest variable rate it could get to.

Dump it. If you can't understand the offer, NEVER TAKE IT.

You could always call the number on the offer and ask directly. But don't plan on getting clear answers from them either. The less you know, the more money they make.

Answer 4

Pre-approval really doesn't mean anything with credit card offers. You still have to qualify with the information you send to them. Even with the "pre-approval" they may still decline to give you a card, give you less than the amount of credit they hook you with, or charge you sky high interest.

CCs will offer you a lower interest rate as long as you are a good on-time paying customer. When you miss or are late with a payment or go over your credit limit, the interest rate goes as high as legally possible.