So I am looking through my mail today, and I see two balance transfer offers from a single bank, one offer for each credit card account I have open with them. So far, nothing strange – it’s not unusual to get competing offers with different terms from the same company, maybe something like:
- 1 year fixed 0% APR, then xx% APR
- 18 months fixed APR, then yy% APR
Interesting to note is that the card offering higher APR is the one I got back in college, when my income was peanuts, and credit score barely existent. On the other hand, I opened the other account more recently, as a working professional with an excellent credit score. I am speculating here, but it seems that the older credit card account is stuck in the “higher risk / more needy of credit / has less choices” customer bucket, while the other is in the “low risk / less needy / more choices” bucket. I am just speculating here, but it sounds like a reasonable explanation..
Another possibility is that it’s some sort of “Predictably Irrational” reasoning in play – where they are throwing in the obviously inferior offer to make the second one look more attractive.