@walesmaven wrote:
Birdy, I also had to give that advice as a buyers' agent. But it was because a new account would mean a delay, NOT because it would disqualify the buyers. The underwriter is obliged to include ALL credit references in their report, so newly opened credit needs a quick look before closing on the mortgage. BUT, of course, going out and buying a vehicle just before closing could alter one's "ratios" and endanger the mortgage. An open, but unused, credit line adds only $25 to the underwriter's debt/income ratios for a mortgage, so a delay, but not much chance of disqualification. In that case, though, delay could cause problems with the seller. That is a whole different matter!
@walesmaven wrote:
I open and close bank accounts and credit cards regularly and have done so for about 3 years. My credit score stays within 5 points of where it was when I started this. I also have done loan app shops that require a hard credit pull during that time. Ideas that one's credit rating will take a serious dive are pure bunk.
@BirdyC wrote:
I remember that a few years ago, a shopper here got burned on one of these shops because the store wouldn't take the snowblower, or whatever it was, back. I don't recall if she was eventually able to return it. Might be, but there might have been a restocking fee or something. I also don't remember if the situation was that the shopper didn't fully read the return policy or that the store refused to honor it. I do remember putting the shop on the 10-ft. pole list, though.
@panama18 wrote:
That bank has a current promotion that gives you $200 for spending $500 in the first 90 days. It's about the best such offer I've ever seen.
@shopperbob wrote:
If I correctly understand the fee to be $200, which is $50 more than the largest fee I have ever received, my decision would be predicated upon IF a return were permissible. If not, as the OP stated, it would only be acceptable if I needed the item.
@myst4au wrote:
That is only for the credit card issued with the bank's name on it. These shops require going to a place called (I am making up this name) Ajax Plumbing, buying a bed, and getting a credit card which says "Ajax Plumbing" and in fine print, you find that the issuing bank is the one you have mentioned which has that great offer It is a privately labeled credit card. Years ago, Circuit City (among many others) had privately labeled credit cards - they said Circuit City on them, but it was issued by some very large bank. This practice is very common among furniture stores, hardware chains, farm equipment stores, etc.
If you do the shop under discussion, you will not be getting $200 back after you spend $500. That deal (which is a great one) is valid only if you go directly to that bank and get a credit card directly from that bank with the bank's name on it. BTW, if you go directly into the bank rather than applying online, you get an additional $25 for spending $25 in a particular category. Yes, I shop that bank every month.@panama18 wrote:
That bank has a current promotion that gives you $200 for spending $500 in the first 90 days. It's about the best such offer I've ever seen.