[Blk335i]

My wife and I picked up a 335 a couple of weeks ago… :rocks:

When we met with the finance guy that day one of the documents he wanted us to sign was a BMW credit card...we told him we are not interested, and he specifically said that they are just going to send us "information" on the car, then if we decided we did not want it after looking over the terms, etc, we could just throw it away.

Well much to our surprise, we get a credit card in mail ready to be used. So due to this we have a hit on our credit and a credit card with a high credit availability. :mad:

I’m very upset about the situation. His exact words were that ‘they will send you some information and if you are not interested, you may disregard and toss the papers’.

Contacted the CA today about it...

Just venting...

[canucklion]

just cancel it, end of story. Not like they are forcing you to use the credit card??

[Carnage]

Originally Posted by canucklion

just cancel it, end of story. Not like they are forcing you to use the credit card??

Exactly. Just cancel the card, [/end thread]

[Coldintake]

Just call, lower the limit, and spend a couple bucks on it. Infact, if you do that, it'll help your credit.

No need to get all hot and heavy about it.

[Blk335i]

I guess...

Just hate the fact that they (the finance guys) do things like this just to make a few extra bucks...wife has many years of banking background, and she was telling me how these guys make bonuses on these things.

[ilshim]

Originally Posted by Coldintake

Just call, lower the limit, and spend a couple bucks on it. Infact, if you do that, it'll help your credit.

No need to get all hot and heavy about it.

i dont think that is the point. someone said one thing, and the did another. i would get mad too. report him, make sure he doest pull this stunk again with other people. he probably does it to get kick backs from BMW CC.

and if it is an honest mistake, let him or his boss know so he doesnt accidently do it again to another person

[CnoteMD]

It's pretty messed up that they opened a credit card without your permission. You should definitely speak to the CA about it, and if the results aren't satisfactory, escalate things to the sales manager, or even general manager.

However, if you decide to keep the card, DO NOT request a lower limit. One of the biggest credit myths is that a high credit line lowers your credit score. Actually, it is your utilization percentage that contributes to your credit score. The higher the utilization, the lower your score. So, a higher limit is actually a good thing (this ensures that even large purchases won't have as much of an impact on your utilization).

[flicks28]

Even by calling and cancelling the card, your credit can still take a hit. Just do a basic search and you will find plenty of information on this, outside of e90post.com. For example, it lowers your avg years of having credit. I'd be extremely pissed too.

[m3 bavaria]

I'm not sure if it's any consolation, but it actually helps your credit quite a bit to have an open line of credit with a low balance to credit limit ratio.

I actually have had clients open new cards to boost credit scores.

[m3 bavaria]

Originally Posted by Coldintake

Just call, lower the limit, and spend a couple bucks on it. Infact, if you do that, it'll help your credit.

No need to get all hot and heavy about it.

Lowering the limit is the worst thing that you can do.

You will take a small hit for a new account and the inquiry, however, that will be offset by the increased debt service.

[flicks28]

Originally Posted by m3 bavaria

Lowering the limit is the worst thing that you can do.

You will take a small hit for a new account and the inquiry, however, that will be offset by the increased debt service.

Exactly, I think the best situation now is just to keep the card and do nothing. Or use it and build up your rebate for your next BMW, however I believe there are plenty more cards out there that will give you more "return" for your purchases.

[OC Guy]

Originally Posted by matsarge

Exactly. Just cancel the card, [/end thread]

If you open the credit card, they run your credit. This causes your credit rating to go down.

[MoreCowbell]

Originally Posted by canucklion

just cancel it, end of story. Not like they are forcing you to use the credit card??

A lot of people on this board cry like little bitches over meaningles, mundane stuff that goes on at the dealership(my favorite being the guy who checks his radio stations after service so that he knows nobody fuc-ed with his stereo). It's sad and pathetic.

THIS however...is a big deal. The OP is right. In order to get that credit card, BMWFS has to run the OP's credit...AGAIN. And every inquiry hurts your credit score(ridiculous, but true). Credit scores are so important in these times, and it is something that should not be taken lightly. If the OP was borderline between 2 different tiers of credit, what the dealership did could actually cost the OP thousands of dollars in mortgage or other credit line rates.

[m3 bavaria]

Originally Posted by OC 335i

If you open the credit card, they run your credit. This causes your credit rating to go down.

An inquiry is negligible. The boost from a new line of credit with a good debt ratio will more than overcome it.

[John 070]

I saw an article stating you basically don't win with credit:

high credit line unused = negative
no previous or too few credit cards = negative
too many cards = negative
high debt relative to income = negative
large number of credit inquiries = negative

The article said you basically lose all around, almost in an arbitrary fashion! I think the worst advice I've ever seen is on this forum, where people who have paid cash for their cars are called foolish. That would be the goal I would think, because say paying 48k for a 335 cash (I didn't but would have if I could have swung it) means that 48k is disposable income. Someone who says, "I can do better investing than the 5.5% I would have to pay on a 60 mo. loan" may be telling the truth and may do just that, but that's speculation, and playing that game means his 48k is not disposable income.

Put things into perspective, say a house requires a 200k downpayment for 20%--would you borrow that as well saying you can do better on the market than the 6.375% the mortgage would charge (that's a little different because <20% causes a series of negative ramifications and the downpay's source is verified as well). That's really playing with fire and we all know the rational decision would be no cash, no house. Zero down on a car is a cop-out imho....really bad financial move.

[m3 bavaria]

Originally Posted by John 070

I saw an article stating you basically don't win with credit:

high credit line unused = negative
no previous or too few credit cards = negative
too many cards = negative
high debt relative to income = negative
large number of credit inquiries = negative

The article said you basically lose all around, almost in an arbitrary fashion! I think the worst advice I've ever seen is on this forum, where people who have paid cash for their cars are called foolish. That would be the goal I would think, because say paying 48k for a 335 cash (I didn't but would have if I could have swung it) means that 48k is disposable income. Someone who says, "I can do better investing than the 5.5% I would have to pay on a 60 mo. loan" may be telling the truth and may do just that, but that's speculation, and playing that game means his 48k is not disposable income.

Put things into perspective, say a house requires a 200k downpayment for 20%--would you borrow that as well saying you can do better on the market than the 6.375% the mortgage would charge (that's a little different because <20% causes a series of negative ramifications and the downpay's source is verified as well). That's really playing with fire and we all know the rational decision would be no cash, no house. Zero down on a car is a cop-out imho....really bad financial move.

As a mortgage banker, my experience has been to the contrary.

Think about it logically, why would the credit bureaus punish you for using your credit with responsibility?

[John 070]

Originally Posted by m3 bavaria

As a mortgage banker, my experience has been to the contrary.

Think about it logically, why would the credit bureaus punish you for using your credit with responsibility?

From your experience, considering those who have high credit scores, what is it that they have in common? Any of the above?

[m3 bavaria]

Originally Posted by John 070

From your experience, considering those who have high credit scores, what is it that they have in common? Any of the above?

Generally, length of time accounts are open, and low debt to credit limit ratios.

Think about it, if credit bureaus punished you for having a high "credit availability" as one member posted, that means that your score would drop as your mortgage is paid down, as the balance to limit ratio improved. That never happens.

It's the same thing with revolving credit. In fact, Edward Jamison, a well known credit expert tells you NEVER to close credit cards, and to constantly request credit limit increases.

[scollins]

My FICO score hovers around 800. I've had a credit card since I was 19, so basically 16 years. I've never worried about inquiries hurting my score. Over the years, I've had many credit cards (opened, closed, some still active), lots of revolving lines of credit at furniture places, electronics places (almost all as zero percent interest deals) and we've bought 9 different vehicles over that time (7 cars, 1 RV and 1 boat.) Also, I've bought 4 houses since 1996 (only have one currently). I think my total available credit on cards is somewhere around $65,000, with once card at $20,000. That is a TON of credit activity for 16 years.

So, how do I have such a high FICO score? I've NEVER, NOT ONCE, EVER had a late payment on any account, not even my phone bill. I think that is the biggest factor impacting your credit score.

Oh, and for those wondering, I never carry a balance on my credit cards. I don't think I've paid a penny in interest on a credit card or revolving account in 6 years. Mortgages and car payments are a different matter though.....

[Coldintake]

Originally Posted by m3 bavaria

Lowering the limit is the worst thing that you can do.

You will take a small hit for a new account and the inquiry, however, that will be offset by the increased debt service.

Not really. He claims he has a very high limit. That's a liability for any creditor. If he has a 30k-50k limit and isn't spending on it, it's going to reflect him negatively.

Drop it to 10k and spend a hundred bucks on it.

And for the principle of the matter, of course it sucks. But that's not what the OP is complaining about.

If you want you can always go threaten the dealership for credit misconduct and get some free crap.

[m3 bavaria]

Originally Posted by Coldintake

Not really. He claims he has a very high limit. That's a liability for any creditor. If he has a 30k-50k limit and isn't spending on it, it's going to reflect him negatively.

Drop it to 10k and spend a hundred bucks on it.

And for the principle of the matter, of course it sucks. But that's not what the OP is complaining about.

If you want you can always go threaten the dealership for credit misconduct and get some free crap.

Other than your assumptions, do you have any credible evidence to back up your claims?

I'd hope that if you're going to give financial advise, then you'd be well informed.

[Ryan 330i]

this same thing happen to me last time i was at macys. he said he would look up my card that i already had, and opened me a new one!
i talked to the store manager and got it resolved.
but bottom line is that it is totally illegal! dont let them get away with it! go talk to the GM of the store and make a huge stink about it!