Why I’m Against the $500 Bonus for College Credit Cards

I don’t mind being told I’m not qualified for credit cards.

I know, because I’m a student at a four-year university and the last thing I want to do is give away a $500 bonus on a $100 credit card.

But there’s a good reason I think that’s not the way to go. 

So, in the spirit of free speech, I’m against the $250,000 bonus on the $100 Platinum Card. 

(In fact, I’d give away half of that, because it’s just $25 more.) 

The reason is because it doesn’t work the same way as the $1,000,000 credit card offer. 

When I took out my $500 card in 2014, I was told I was not qualified because I didn’t have a high school diploma. 

I didn’t realize this until I had to pay back my debt in 2017, and I had no way of knowing that at the time.

The new $1 million card also requires me to pay a $1.5 million interest rate and take out another $5,000 in monthly payments. 

And even if I were qualified, I would still have to pay off my debt by March 2019. 

This card offers a $5.99 monthly fee on top of the $50 monthly fee for a standard Platinum Card that is $25 cheaper. 

Plus, the $2,000 monthly credit monitoring fee for the first year on the new card is even more expensive than the $25 monthly monitoring fee from the old card. 

But, most importantly, this new card offers no interest at all, and the fees are waived on the first anniversary. 

What is a $25 Monthly Fee?

In 2014, when I took the $600 $1 and $500 $1 cards out, I wasn’t expecting them to be $1K. 

The new $250 card will be much less. 

It costs $25 for a $300 annual fee, $25 on top for the $300 monthly fee and $25 per month for the annual fee plus the $75 monthly fee. 

Now, $75 per month is not a bad fee to have to worry about, especially for someone who doesn’t have much to spend, but it is $50 less than the annual fees for the new cards. 

For instance, if I paid $50 per month to get the $200 annual fee on the current $1 Million card, I still would have to have $25,000 to pay that $1k in interest. 

$25,00 per month? 

That’s just not going to cut it for me, so why am I not willing to spend a little more to get that same $1M balance back? 

And while I think it’s an appropriate fee for someone like me, it also makes no sense to me as a cardholder for anyone else. 

Here’s why: First, the cardholder’s balance is still tied to the card issuer, so even if they have a negative balance, the balance remains tied to them. 

Second, there is no way to reverse a negative credit score if the card is used by someone else.

In fact, in 2016, the federal government told banks that it will not honor negative balance requests for the next two years. 

That means that the card holder will remain in a negative score for the foreseeable future. 

Third, even if the new $25 fee is waived, there will still be a fee for using the card.

So even if you never use the card and it has zero balance, you still have the fee for each transaction. 

Fourth, even the new fee is significantly higher than the card issuers initial offer, which was $1 on top. 

Fifth, the fee isn’t waived until March 2019, which means you will still have $75 of interest to pay. 

Sixth, if you already have a $250 yearly fee on your card, this will still add another $25 to your balance, which will hurt your credit score even further.

And even with the $5 fee, it is still $25 less than $1/month for the current card.

This is why I’m in favor of removing the $350 annual fee and using the $150 monthly fee instead.

If I’m going to do this, I don`t want to be a burden on myself, my family or my creditors.

I want to give my family and creditors a way to get back at me for my irresponsible decisions.

Category: References