Investing, saving, and interest - always basic but big money topics.
A credit card offer came in the mail today from 1st Financial Bank for our son who's going to start his freshman year at Asuza Pacific University in the fall.
No Annual Fee, No Application Fee, and No Processing Fee and No Interest Charges up to $250 as long as the account is in good standing.
In the first paragraph, they state why a credit card is helpful: safer than cash, more acceptable than a Personal Check and a life-saver for emergencies. Then they write most people never learn to use a credit card responsibly.
They give 3 options for choosing a credit line: $1,000; $500; $250
On the reverse side is a brief app where they ask how you're paying for college and if you plan to work part-time.
They write a separate pitch letter to parents saying the statements can be mailed to the home address.
It looks like it's a good deal.
Any thoughts?
3 comments:
I was a college student a couple years ago when this company targeted me. Yeah, it seems like a good company at first. They slowly increase your credit limit(down the road)without asking if you want it done and then you have the APR issue. It does have the benefit of have a 0% APR for anything under $250 but for anything over, the lowest interest rate the company offers is 16. some %. I called several times to see if they offer competitive interest rates. I have been with the company for years, never made a late payment, always paid more than the minimum payment and they would not budge. Every person I spoke to from the customer service representative to the Manager would spew out the same thing. "16 % is the lowest rate our company is currently offering, you have the best rate. Anything under $250 has a 0% APR. We cant offer you anything else at this time." I got so fed up I went ahead and transfered the balance to a 9% interest rate, 0% for a year. The company should really offer better alternatives for those with good track records and a good credit rating.
If you want to make an online payment it is $9, if you want to make a phone payment it is $14. If you dont want to pay the expensive service fees you must mail your payment out. If you do that, Make sure you do it extremely early. More than a week, otherwise they will charge you late fees. The online services are terrible, you cant even view your previous statements.
Thank you for your comments. I've thought about interviewing the bank. It may be good to do so with your perspective that you provided.
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