Borders 3.2.1(SM) Visa®

• 0% Fixed APR* for up to 12 months
• No Annual Fee
• 1,000 Bonus pts after first qualified purchase
• 3 points for every dollar spent at Borders®, Borders Express, Borders.com, Waldenbooks® and Waldenbooks.com
• 2 points for every dollar spent on eligible Gas, Dining and Grocery purchases
• 1 point for every dollar spent anywhere else
• No cap on points earned
• Redeem points for Cash or Rewards

Issuer : Chase Manhattan Bank

APR : 0% Introductory APR on all purchases and balance transfers

Introductory Period : 12 months

APR After Introductory Period : 15.24% variable

Cash Advance Rate : 24.24 % variable rate on cash advances

Annual Fee : $0

Credit Line Possible : The maximum credit available when you apply for Borders 3.2.1 (SM) Visa is $100,000 and the minimum is $5000.

Insurance included :  The Borders 3.2.1 (SM) Visa includes extended car rental and warranty coverage on services and purchases for up to a year.

Financing Configuration - The finance charges applied use the "Two Cycles Average Daily Balance" method, which is a more costly method in applying finance charges for those who occasionally carry a balance as compared to the "Average Daily Balance" method used by most card issuers.

Grace Period - You have twenty days after making a purchase during which you do not have to pay interest on account.

The Best Thing About It - You can earn triple and double points. You earn three times the points for every dollar spent at Borders, Borders Express, Borders.com, Waldenbooksand Waldenbooks.com and you earn 2 points for every dollar spent on eligible Gas, Dining and Grocery purchases.

The Worst Thing About It-The way the interest on your Borders 3.2.1 (SM) Visa is calculated is more costly than with other cards and the regular advance rate is very high at 24.24% variable. There is also an annual limit to the points you can earn.

Credit Rating Needed For Acceptance : Excellent credit only.

Who Is It For?

The Borders 3.2.1SM Visa by Chase, is designed for those with very good credit who shop at Borders and Waldenbooks and who are looking for a generous flexible reward program, not only on books but on other ordinary every day purchases as well.

The Benefits

You receive an initial gift of points.  1000 bonus points are bestowed after you make your initial purchase with your Borders 3.2.1 (SM) Visa.

You can earn triple points. You earn three times the points for every dollar spent at Borders, Borders Express, Borders.com, Waldenbook and Waldenbooks.com

You can earn double points for some types of ordinary retail purchases and one dollar for a point on all other puchase.  You own 2 points for every dollar spent on eligible Gas, Dining and Grocery purchases and a dollar on every other type of purchase.

You can choose the form of your rewards.  For every 2,500 points earned, the cardholder may choose to receive a $25 Borders Gift Card. Points are also redeemable for cash, travel rewards, gas and restaurant gift cards, and more. There is no limit to the amount of points that can be earned.

Duplicate Borders 3.2.1 (SM) Visa cards are free. You are not charged for additional cards.

There is no cap on points. Your get to keep the rewards you reap and use them when you want.

You can organize and keep track of all of your business expenses online. You are also able to monitor what goes on in your account with full access to an online account report.  A full expense report can be requested at the end of the year.

You have theft or card loss protection.  Emergency card and cash replacement is part of your credit card agreement.

You have ample travel insurance.  This card comes with auto rental insurance, roadside assistance and a car rental damage waiver.

You can benefit from extended warranty protection. If a product fails you have warranty protection up to $300 as long as you apply for this within a year of purchase.

The Borders 3.2.1 (SM) Visa has zero liability for fraud.  If you claim someone has stolen your card then you do not have to be liable for the usual $50 that is usually deducted.

The Drawbacks

The Borders 3.2.1 (SM) Visa has a short grace period. Many credit cards don't begin to garner interest on purchases until thirty days after purchase. Chase Flexible Rewards Platinum Visa only gives you twenty days.

The introductory rate for is not guaranteed. If you make a late payment on any bill, not just your credit card bill, your introductory 0% rate can be replaced with the much more costly prime rate. The bank also reserves the right to shorten the term of you introductory period if you do not make a timely or full payment.

No APR is guaranteed with this card. APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs with a month's notice.

All payments you make to your account will be applied to lower rate balances first. This makes your credit card debt harder to pay off.

The introductory rate can be cancelled at the discretion of the Chase Manhattan Bank. You will lose your introductory rate if you exceed your credit limit or are late with a payment or if there is a negative comment on your credit report.

It is way too costly to carry a balance on this card. Thanks to the way the interest is calculated it could be a very expensive card if you did not pay it off in total each month.

This Borders 3.2.1 (SM) Visa has many hidden fees.  See the Fees to Watch Out For section below.  The fees charged for your every little financial transaction can really add up and make it seem like you are paying an annual fee anyway.

Fees To Watch Out For

Late payment fee : $15 if balance is less than $250; $39 if balance is $250 or more

Over The Limit fee : $39

Cash advance Fee : 3%, $10 minimum

Balance Transfers : 3%. $5 minimum, $75 maximum

To Summarize -

Aside from the extraordinarily generous rewards (such as gift cards and discount on Borders and Waldenbook store), the Borders 3.2.1 (SM) Visa has a reasonable interest rate for purchases and balance transfers (for those who qualify), no annual fee, and a 0% introductory rate on purchases and balance transfers for the first twelve billing cycles.  It is best for a consumer who can pay in full each month as the post-introductory APR  and fees are actually quite high.  Few people actually qualify for the card, which demands an excellent credit history to qualify.