Today I got an interesting e-mail where the bank was telling me how I qualified for a $15,000 line of credit where the interest rate was 6.85%. I was immediately wondering at first why I would ever even use that and why offer it to me? That’s considering how even with the credit card I never spend more than I actually have in the bank.
While many people would probably look at that $15,000 digit my mind was immediately at that interest rate. I was just imagining if anyone ever used all $15,000 that is a heck of a lot of money to pay in interest afterwards. Obviously if people are lending you that much money then they should get a return of some sort. I definitely wasn’t the right person for this offer though.
Even with credit cards when people say I am pre-approved I always view it more as something that can cause more debt if you don’t really need it so it’s better to not sign up.