Beware of Black Friday.....That Extra 10% Off Can Actually Cost You Thousands of Dollars

By
Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #151088

Black Friday has historically been one of the single largest shopping days in the country.  The Day After Thanksgiving Sales of Black Friday are considered to be the "official" start of the Christmas holiday shopping season. 

Black Friday is the day that retailers make a huge advertising push for the Christmas season.  With this, comes the offer from any retialers to save an extra 10% on your entire purchase.  To get the extra discount, you are typically required to open a new store credit card to receive that discount.  Some electronics or home improvement retailers use their store credit cards to offer No Interest Financing instead of a percentage off discount. 

While these can definitely save consumers money, most forget that opening a credit card will require an inquiry into their credit.  Unlike mortgage shopping where each inquiry doesn't stand on its own, each credit inquiry for a new credit card does.  Every credit card that you open does have a subsequent inquiry that will impact your credit score.

With interest rates being extremely credit score sensitive these days, most people cannot afford to lose any more points to their credit score than absolutely necessary.  Once you drop below a 740 credit score, then your interest rate can be negatively impacted by your credit score. 

For some borrowers, too much of a credit score drop means more then just a higher interest rate.  If their credit score drops too low, some borrowers may find that they no longer qualify for a particular loan program.  Others may have taken on too much debt to now be able to qualify for a mortgage. 

If you are thinking about buying or new home or refinancing an existing mortgage within the next few months, then you may want to reconsider opening that new credit card just to save 10% that day.  That 10% on your $100 is only $10 in savings.  It's hardly worth the thousand on extra dollars that it could cost you on a mortgage. 

 

Think twice before you open that new account.

 

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
  •   

    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

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Rainmaker
171,653
Robert J. Russell
Robert J Russell Companies - Dallas, TX
IRES, ICREA, GMA, LAS, LUTCF, Sales Trainer

I still think the week before Christmas is the best time to shop. Retailers are discounting to get those last minute buyers to buy and shopping on the internet saves time, gas, sometimes sales tax and this to me makes it all worth it.

Nov 23, 2010 02:18 AM #1
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Rodney, great post.  It's always so tempting to take the special deal that retailers offer.  Many consumers don't realize that 0% interest for 12 months means interest calculated from the start if the balance is not paid off. 

Nov 23, 2010 02:25 AM #2
Rainmaker
421,801
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Robert...Black Friday no longer has the same impact as it once did.  Cyber Monday and the last Saturday before Christmas have emerged as other big shopping days. 

Pamela...You are correct.  Don't forget to pay off that No Interest Financing account before the period is up.

Nov 23, 2010 02:34 AM #3
Rainmaker
601,437
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - I can't believe how many people fall for those gimmicky sales pitches.  On another note, I have been shopping on a black Friday in years.  LOL  I do my shopping last minute too.

Nov 26, 2010 04:56 PM #4
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Rainmaker
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Rodney Mason

VP of Mortgage Lending - AL, FL, GA, SC, & TN
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