In all fairness to you, the PenFed PCR is a new card in the last six or so months.
That’s what makes THIS forum valuable. I learned something new!
Nope – CapOne QS does not double, it doubles manufacturer warranty by up to 1 year on warranties of 3 years or less.
All Citi cards, including DoubleCash, add 2 years to the manufacturer’s warranty. No hoops.
This makes all the sense in the world, although good luck getting much of a credit line from a bank with whom you have no other relationship.
That having been said: Pay your bills, deadbeats.
Yes, and this applies to much more than just CC’s. For example on a loan don’t keep excess cash/assets at a bank you carry a loan with. I have a large commercial loan with WF and as part of the deal commitment they required me to have a business checking account with them for auto-draft of the loan payments (and I’m sure in hopes they thought we’d do a whole lot more with it).
Naturally my actual checking activities are elsewhere, so just transferring in enough monthly to pay the loan and that is all…
As mentioned by others, the best cards from BoA require keeping $100,000+ in assets with BoA/Merrill in order to qualify for the Platinum Honors boost of the preferred rewards program.
I also keep my Landlord/Tenant account there to hold security deposits. The balance counts towards my assets for preferred rewards. The account lists my tenants as beneficiaries (e.g. for ownership in case of my own bankruptcy, the interest is attributed to the tenants, etc). I’m pretty sure BoA would be in huge trouble if they seized those assets for my own debts.
In any case, I split my credit card usage into two/three categories:
- Rewards cards that I pay off every month.
- Balance Transfer deals that I used for unsecured loans.
- Travel cards that I keep for some other benefit (E.g. IHG card $49 annual fee gets a free night anywhere, airline cards with free baggage allowances and companion tickets).
So there’s little danger to my assets from my credit cards where I’m not keeping any balances. I’d maybe qualify this concept as “Don’t keep cash/assets at banks that you keep large balances on credit cards”.
My credit lines are about the same on all my credit cards that aren’t store specific. My Discover credit line is $3000 less than my other credit lines. I don’t have any other banking relationship with Discover. It’s my oldest credit line.
Not just for deadbeats. If someone is a joint account holder (say on an elderly parents account for convinience sake) and they die before the parent leaving unpaid credit card bills, there goes the parents life savings…
I think this is only a problem with Wells Fargo. Nobody else requires a deposit relationship to issue decent credit lines.
Why is that not a surprise?
Depending on state law, maybe up to half of it. Not a good situation in any case.
I’m not a lawyer but the Penfed language certainly sounds like an attempt to have the entire joint account be considered as having been pledged as security retroactive to the date of death. It’s certainly possible that the entire account would be at risk even in states that would grant half of the jointly held account to creditors by default…
I’m not a lawyer either. It looks like there’s a conflict in that language. If state law says that a joint tenant owns 50% of the “shares”, then Penfed couldn’t legally attach more than that to satisfy the debt. For practical purposes, a joint tenant has access to 100% of the “funds available to” them, so it sounds like Penfed thinks they can attach 100% of the money.
The real question is, on the date of death, how much of the funds are available to the deadbeat?
(Yes, I went there!)
I say none.
I have numerous credit cards at banks and credit unions without any other type of relationship. I don’t think it’s as dire as you imply.
For reference: one of my cards has a 50k limit and I have simply $5 in the share account. Never any loans or direct deposit with them.
I guess penfed thinks it will work better than this:
If you are going to default just move your money.
Does the language mean that if you miss a payment by a day you are technically in default and they can use the terms to seize your bank account to pay off the entire outstanding balance? That would be pretty lousy if you are floating a 0% apr…
It doubled my 12 month Nexus 5x warranty! Sorry, I should have said extends mfg warranty by 12 months.
I applied for a Wells CC for a nice sign up bonus. Perfect credit and no recent pulls. They denied based on not having a banking relationship.
I was trying to start one with them through the credit card, now I will never have one with them.
Still not right, quaters. CapOne doesn’t extend mfg warranty by 12 months, they double warranties by up to 1 year on warranties of 3 years or less. I.e. a 7-mo warranty becomes 14-mo, 12-mo becomes 24-mo, but 36-mo becomes 48.
Citi adds 2 years regardless of mfg warranty, so 7-mo becomes 31-mo.