"Hooters Mastercard"

Hooters MasterCard Review
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Written by: sam0616 on 2008-01-10

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sam0616's review: I applied for this card a week ago knowing that I am almost maxed out on my other cards and my FICO has dropped in the last few months. I have a BOA Norwegian Cruise card with a $12,500 limit and a Discover with a $7,500 limit. I have a Paypal Mastercard with a 2K limit, a Capital One with a 2K limit, an Orchard bank with an $1800 limit and a Wachovia card through my bank with $2,500K. I have 5 store cards too (Bloomingdales $500 (recently got this one), Macy's- $1500, Target $200 (just got), Home Depot $2500 and Lowes $750. All my Visa and MC's are pretty much maxed. This dropped my scores by over 70 points in the last 6 months due to utilization (I am around a 630 FICO now). I have pretty good APR's on BOA and Discover. BOA is at 1.9% until next summer and then goes to 14% and Discover is at 11.99%. PayPal is around 17% and Wachovia is 18%. The others are ridiculous (over 21%)

When I applied for the Hooters the website said I would receive a reply within 7-10 days. After reading the other reviews I didn't automatically think I was denied. Plus I have no lates or negatives on my report in the last 2 years, so I thought they would give it to me. (They were probably thinking, why not give someone who always pays their bills on time and uses boat loads of money on their credit cards more???). If you are wondering, my annual income is over $70K (not including my husband).

Today I received the card with no annual fee and an outrageous APR of 24%. My limit is only $1500. I am guessing this is due to the poor utilization of my other limits. I guess this is not too bad considering, but hopefully I can get some of these paid down fast and not have to use the Hooters card.

2 Comments

Comment 1 by porgy1000
Hmmmm on 2008-01-10

Well, not to get too involved here, but there is a few things I would like to say.

First - if your maxed out on most of your cards which accounts for 35% of your FICO score, you would be considered as a default rate customer by most banks. Hooters issued you a card UNDER the default rate. If you applied to Citi, Chase etc, you would have just been denied.

If I was you, ok, let me say this carefully, I would pay down all my cards to under 35% of what I owe on them before taking out any additional cards. This way you can get prime cards and prime rates again.

I am quite amazed that the present cards you have now have not raised your rates to 29%, If you carry those maxed out balances for more then a few months you can expect a letter in the mail from your other cards raising your rates to default rates.

You DO NOT have to default on any card to get the default rate. All you have to do is carry over 50% useage for 3 months and they will charge you the higher rates. You should read the disclosures that came with your original credit cards.

I hope you work out your issues. I do not like to see anyone suffer
Comment 2 by beanciapoo
Good Credit on 2008-01-11

You have good credit, you can make it work for you in many ways. Try your best to make a goal to atleast pay them down. I know it is hard sometimes, but you have a lot going for you. You have great credit and a good annual income.
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