0 APR Cards Before Big Law? Forum

[Desert Fox]

[emciosn]

When the application asks for income, do you put your full salary, or only the amount you will earn during your stub year? Would there be any benefit to waiting until January 1st so you can put down your full salary?

chase gave me a 28k limit based on "i'll make 160k starting in octobre"

Yeah, just put our full year biglaw salary.

[thesealocust]

It's the ultimate lawyer challenge: say the most favorable possible thing without lying.

For example, you can phone up every credit card company in the country the day after you start your job and state that your monthly income is 13.3k before taxes. This is often easier to do applying over the phone, since the questions can be worded in ways that don't allow for a favorable (but true!) answer when using an online form.

[Desert Fox]

[Anonymous User]

OP here - I put 160 but how do they know I'm not lying? Can't anyone put this? My only evidence is the offer sheet, which isn't on file anywhere. Won't they just look at my score, debt and past year salary in making their decision?

[thesealocust]

OP here - I put 160 but how do they know I'm not lying? Can't anyone put this? My only evidence is the offer sheet, which isn't on file anywhere. Won't they just look at my score, debt and past year salary in making their decision?

In my experience, they don't verify anything. That may depend on your credit score and history though.

[emciosn]

OP here - I put 160 but how do they know I'm not lying? Can't anyone put this? My only evidence is the offer sheet, which isn't on file anywhere. Won't they just look at my score, debt and past year salary in making their decision?

In my experience, they don't verify anything. That may depend on your credit score and history though.

Yeah I highly, highly doubt they will try to verify anything. The whole online application process takes like 5 minutes. I think you're over-estimating the level of thought that goes into the process on the CC company's end. Remember when banks were giving $500k mortgages without asking for income verification. I don't think the CC company will break a sweat over your $10k credit limit. You credit score/history has a far greater impact.

Lying on credit apps could make a debt nondischargeable in BK but that doesn't matter much to you.

[2014]

OP here - I put 160 but how do they know I'm not lying? Can't anyone put this? My only evidence is the offer sheet, which isn't on file anywhere. Won't they just look at my score, debt and past year salary in making their decision?

It's like a tax return they don't validate anything 99% of the time but if they do you are fucked if you lie (fucked being declined probably). 160 is fine since you will be making it.

[mvp99]

You can also spend using one credit card ans before interest are due do a balance transfer to a CC like Slate and they have an offer of no interest on that amount until 2017. Most CC offer 1, 1.5 years w/o interest.

[Anonymous User]

OP - I'm not worried about the consequences of lying on a credit card app. I'm merely trying to gauge the reliability I will get the 9k card because the screen said "congratulations you're approved". I figure my income played a role in this, but think it'd be too reckless for them to approve without verifying it for the congrats you're approved message to be reliable.

[emciosn]

OP - I'm not worried about the consequences of lying on a credit card app. I'm merely trying to gauge the reliability I will get the 9k card because the screen said "congratulations you're approved". I figure my income played a role in this, but think it'd be too reckless for them to approve without verifying it for the congrats you're approved message to be reliable.

Again, I think you're giving the CC company a little too much credit. If the screen says your approved, that's that--you're approved for the limit stated. You'll get your card in the mail in a couple days. It seems odd because it doesn't take very long and doesn't seem like they really kick the tires on you but that's not their business model. It's not cost effective to check people that closely. They just want to get as many people signed up as possible and assume defaults will stay within the range their models predict.

[Anonymous User]

OP again - thanks! Is it worth going full throttle with these cards? Why not open up 50k lines of credit and use that money to pay off student loans? If interest rate is 0 for 18 mos why not just make minimum payments, and max them out on loan repayment? Even if I defaulted on the card, this is 0 APR dischargeable debt versus heavy interest non-dischargeable debt. Why doesn't every associate do this?

[thesealocust]

OP again - thanks! Is it worth going full throttle with these cards? Why not open up 50k lines of credit and use that money to pay off student loans? If interest rate is 0 for 18 mos why not just make minimum payments, and max them out on loan repayment? Even if I defaulted on the card, this is 0 APR dischargeable debt versus heavy interest non-dischargeable debt. Why doesn't every associate do this?

1. You will hit credit limits fast. I opened two cards in 2015 (was drunk and in Vegas for he second, but it let me skip a long line and I got a free buffet. Worth it), and the credit limit for the second card was less than 1/4 the limit of the first.

2. You can't easily pay student loans with a credit card. If you canfind a way, it likely has a 3% or higher fee. Cash advances typically can't get 0 APR and have crazy high fees.

3. Bankruptcy sucks, and so does 10 to 20% APR or so you can expect once 0% APR ends.

4. Maxing out your (high) credit limit will trash your credit score even if you don't file for bankruptcy and find the cash to pay the loans once 0% APR ends

5. If you max your cards on loans, you won't be able to use them for other things.