Surprise! New credit card with your refi

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MnD
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Surprise! New credit card with your refi

Post by MnD »

Here's a new one for me anyways.

So my mortgage refi booked today at my bank where I have all my other accounts. 2.75% and no closing costs :happy
Also new to my list of accounts today when viewed on-line - their top of the line cash back (5%, 2% and 1% categories) credit card.
Huh? :confused

I called and my bank rep said (in one long gushing sentence) "Oh yes Mr. MnD - the bank has been "doing this" as a special additional service for their most highly qualified new or refi mortgage customers and don't worry, it's a great card and we did not do another credit pull but rather used the credit pull when you applied for the refi and as a special bonus as a platinum-level customer you get two categories that are 5% cash back and two categories that are 2% cash back (instead of one each for non-platinum customers) and no annual fee and once per year when you redeem $100 in cash back you'll get back $125.

She was obviously prepared for that "what the heck is this" call. :annoyed

Funny thing is it worked! I have some automatic payments that fit into the 5% cash back categories and the card supports "autopay in full". So after "programming" I can throw the cards in a drawer and collect 5% cash back on some not insignificant monthly bills and once a year bag the $25 bonus. Interesting considering I never applied for the card, it was never discussed at loan application or closing and I never signed or received any sort of disclosure paperwork. Bet it comes in the mail next week.

So much for the theory that banks are being too tough about granting consumers credit. :mrgreen:
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tj
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Re: Surprise! New credit card with your refi

Post by tj »

US Bank huh?
cherijoh
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Re: Surprise! New credit card with your refi

Post by cherijoh »

Interesting take on deepening the relationship with customers that you want to keep long term. I am curious - did you already have a credit card with this bank or just checking, savings, etc? If so, was it your primary credit card? I'm trying to see if they are cannabalizing their own credit card business or trying to steal you away from a competitor.

Offering autopay is smart both from the perspective of getting regular use of the card and the PITA factor that makes you think twice before closing cards tied to reoccurring bills.

I got a free checking account and a safe deposit box when I opened a HELOC a few years back (before the housing implosion). I was told that I didn't need to draw on the Line of credit to get the benefits. Before someone posts "why as a Boglehead would you get a HELOC?", I should state that I knew I was going to be leaving my job within a year and wanted to make sure I had easy access to credit.

C
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bottlecap
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Re: Surprise! New credit card with your refi

Post by bottlecap »

MnD wrote:Interesting considering I never applied for the card, it was never discussed at loan application or closing and I never signed or received any sort of disclosure paperwork. Bet it comes in the mail next week.
I would raise hell about this to no end. They did something that could be materially adverse to your credit without informing you?!? Am I missing something? Great card or no, they basically opened an account for you and imposed a legal obligation upon you without your consent. There had to be something in the documents you signed.

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MnD
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Re: Surprise! New credit card with your refi

Post by MnD »

bottlecap wrote:I would raise hell about this to no end. They did something that could be materially adverse to your credit without informing you?!? Am I missing something? Great card or no, they basically opened an account for you and imposed a legal obligation upon you without your consent. There had to be something in the documents you signed.
JT
I'll look again tonight but I looked at every page at closing for anything non-standard and saw nothing. I've done many mortgage loan closings and I know what every closing document is/does, so I'd be shocked if I missed something that disclosed opening an unrelated consumer credit account. Also - the required disclosure forms for credit cards are standardized and have huge font boxes with rates and the main terms and I certainly wasn't shown or given one of those.
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Topic Author
MnD
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Re: Surprise! New credit card with your refi

Post by MnD »

cherijoh wrote:Interesting take on deepening the relationship with customers that you want to keep long term. I am curious - did you already have a credit card with this bank or just checking, savings, etc? If so, was it your primary credit card? I'm trying to see if they are cannabalizing their own credit card business or trying to steal you away from a competitor.
C
Must be the latter.
My primary card is with a competitor while all checking/savings/mortgage is with this bank.
I have a rarely used secondary card with this bank co-signed with an adult child she uses only for textbooks at college.
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randomwalk
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Re: Surprise! New credit card with your refi

Post by randomwalk »

bottlecap wrote:I would raise hell about this to no end.
Yeah, maybe it's just the lawyer in me, but you are being much more calm than I would be in the same situation. They would probably lose all my business, not just the new credit card.
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LadyGeek
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Re: Surprise! New credit card with your refi

Post by LadyGeek »

I suspect that first use (perhaps card activation) will be considered acceptance of whatever terms and conditions are imposed on the card. Until then, keep looking for the documentation that gave consent to authorize a credit card.

I'm with the "no authorization, no business from me" crowd.
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tfb
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Re: Surprise! New credit card with your refi

Post by tfb »

It's a good card, arguably the best one as a companion to a 2% flat rebate card. I would let it slide.
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serbeer
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Re: Surprise! New credit card with your refi

Post by serbeer »

"and once per year when you redeem $100 in cash back you'll get back $125"

I'd just say Thank You.
Or closed the card if I really did not want it, but it is pretty good card indeed.
Topic Author
MnD
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Re: Surprise! New credit card with your refi

Post by MnD »

LadyGeek wrote:I suspect that first use (perhaps card activation) will be considered acceptance of whatever terms and conditions are imposed on the card. Until then, keep looking for the documentation that gave consent to authorize a credit card.

I'm with the "no authorization, no business from me" crowd.
Went through all my loan papers this am before filing away, no disclosures or consent to open a credit card.

It's a useful card to me as I have a 2% back on everything card as primary so I can just cherry pick with the 5% categories.
I'll be curious what comes along with the physical card in the mail.
Probably all the disclosures and I'll bet you're right, activation will constitute acceptance and consent.
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