Description
This article is from the Credit cards and
Consumer Credit FAQ, by adams@spss.com (Steve Adams) with
numerous contributions by others.
215. I belong to the Benevolent Order of Mumble, and they mailed me a credit-card solicitation. It would be a MasterCard with their logo on it. Is this a good deal?
This is an affinity card; see section 1, "Credit cards, other
cards." Evaluate an affinity card as you would any other. If you
would consider it a good deal in the open market, based on the way
you use credit, then it's a good deal. But an expensive card
doesn't become a good deal just because a small fraction of the
profits are turned back to your organization. Unless the card is a
good deal for you personally, it's a better idea to make a direct
donation to your organization -- and you get a tax deduction too, if
it's a charity.
216. My bank offered me a deal if I would agree to set up my checking
account for automatic withdrawal on the due date to pay the credit
card. Is this a good idea?
It depends on the specific terms of the deal. For example, a
reduced interest rate is meaningless if you pay off every month
anyway.
It also depends on your own spending patterns. If you tend to
forget to pay your bills on time, this arrangement can save you some
late charges or finance charges. On the other hand, if you forget
to enter the automatic withdrawal in your checkbook you may find
you're overdrawn and start bouncing checks.
Some consumers have reported problems with disputed charges being
paid automatically, or the bank disregarding special requests to
alter a scheduled payment. You should weigh carefully this
additional loss of control over your checking account against the
benefits promised.
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finance, debit card, credit card, secured card, guaranteed card, unsecured card, consumer credit, bad credit, credit report
