Newegg Preferred Account Credit Reporting

[CySU]

I was doing some research on the Newegg Preferred Account when I ran across a few posts across the internet stating that the Newegg Preferred Account doesn't report to your credit.

It sounds like they do an initial hard pull but then don't do any further reporting whether your account is under or over utilized. But there were also a few other posts stating that they don't even do a hard pull, and just settle with a soft pull. However, many of these posts were from 2006-08, and I know that Newegg's old partner, CIT Bank, was bought out by WebBank, and I don't know if this has changed?

Reason I ask is because I'm in the process of rebuilding credit, and have a couple hard inquiries on my credit in the past few months for which one I was approved. My credit score is probably in the "fair" range for an account that I unfortunately let snowball while I was off at school and didn't have a job. (And is now completely paid off)

TBH, I wouldn't even be considering the Newegg CC if I felt I couldn't handle the burden of paying off an impending purchase; I was actually planning to pay for a new build out of pocket in a couple months once I had saved enough to cushion my account for such a purchase. Once I spotted the 0% APR for 12 months, I thought it'd be much easier to spread those payments out 8-9 months instead of all at once. And if they do hard pull, it'd be nice of them to report that I've been paying like a good consumer should.

Does anyone have any recent experience with this?

 

[western]

I don't have experience with their card, but rest assured, if your 30 sec late they will report that.


Store cards usually don't get you as good a bump in your credit profile as do main bank cards, also main bank cards are somewhat better on the interest rates as well. Store cards make a BUNDLE off impulse buyers because they start out with a hefty interest rate.

The no interest for x amount of months is great if you beat the deadline, miss it by a penny and you'll pay the interest on the WHOLE balance of the original charge.



Always assume a hard pull.

 

[spenceone]

i have a question on this prefferd account.... do i have ti make all the small payments or can i pay for the first two months and not worry till the third? Or can i just pay small payments for the first 6 months then pay the last 6 months in full? im kinda confused about it. cause it would be very convienent to make smaller payments then to pay an arm and a leg for a new system. if ayone has some in depth info on this please let me know. Thanks. :]

 

[killermoats]

I am a Newegg perfered account holder and have been for some time. I think it sucks that it is not reported to the credit burros. Having the extra 5.6k would be a nice buffer for my unused credit.

Here is the simple version of how the "no interest" periods work.

Lets say you make a purchase for $500 month 1. Now you have 12 (Technically 11 to be safe) months to pay it off. You will have a required monthly payment. This will depend on your purchase. A $500 balance should have a $30-$40 monthly payment. My 4k balance was like $115. You are accruing interest this whole time but it is not applied, It is held in a side bucket. (probably $150 by the end of the year)

Now say you make the min payments $30 x 12 months is $360 paid. That side bucket will be applied.
Now say you pay extra at any point during the 12 months and you pay it in full by month 11 to be safe. That side bucket goes away.

Here is the part that can confuse you. Unless you study your statements for a few months.
Purchase A for $500 in month 1.
Purchase B for $1000 in month 4.

How are payments applied? Some lenders will split your monthly payments between Purchase A & B (by ratio of balance)
Luckly, Newegg will do them in order of purchases. So if you take 5 months to repay purchase A, you'll still have your full 11 months remaining to pay off purchase B.

Best advice, plan your payments so each purchase is paid off in half the required time. No need paying hundreds in interest.

Hope this helped.