Latest Rant - Credit Card Rates

[ComeBackMudPuddles]

Let's try to keep this thread politic free please.

LOL....I don't think one can b*tch about credit card rates and companies without bringing in politics.....

 

[andyzee]

Interesting article in this week's Parade Magazine: http://www.parade.com/articles/editions/2008/edition_08-10-2008/2Credit_Cards

 

[cbcbd]

Interesting article in this week's Parade Magazine: http://www.parade.com/articles/editions/2008/edition_08-10-2008/2Credit_Cards

"Even credit-card customers who play by the rules can be slammed with huge costs. Paying off your bills in full every month—as 60% of U.S. consumers always or usually do—doesn’t endear you to the credit-card companies. Once, lenders sought such customers. Today, credit-card companies call them “deadbeats,” because they make the least money off them."

I guess I'm a deadbeat


I use credit cards for 2 purposes:
-Get rewards (I chose cashback) from purchases
-Increase my credit history and therefore build my credit score

 

[Marc]

I'd be of the new deadbeat class then too.... sweet.

 

[SkiDork]

"Even credit-card customers who play by the rules can be slammed with huge costs. Paying off your bills in full every month—as 60% of U.S. consumers always or usually do—doesn’t endear you to the credit-card companies. Once, lenders sought such customers. Today, credit-card companies call them “deadbeats,” because they make the least money off them."

I guess I'm a deadbeat


I use credit cards for 2 purposes:
-Get rewards (I chose cashback) from purchases
-Increase my credit history and therefore build my credit score

Nice to know I'm giving them the shaft!

 

[Marc]

I don't get it though, it's the credit card companies own choice. They either charge a nominal fee for using the card, like Amex still does with some of their cards, or they recognize they can make more profit off the interest paid by customers who are initally attracted to a card with no monthly fees and tend to make poor spending decisions and wind up paying more in the process.

 

[cbcbd]

I don't get it though, it's the credit card companies own choice. They either charge a nominal fee for using the card, like Amex still does with some of their cards, or they recognize they can make more profit off the interest paid by customers who are initally attracted to a card with no monthly fees and tend to make poor spending decisions and wind up paying more in the process.

You're right, they could chose to start charging fees for cards, but thankfully they don't. I have seen card fees used in two cases - cards geared to folks with very low credit ratings where they want to guarantee that they get something out of it even if you don't pay... and if you don't they'll know right away.
Or folks with money who want a card with extra benefits/perks/protection and are willing to pay for it.
Neither of my Visa, MC, or Amex cards have a fee.

The only money I've ever given a CC company was from ridiculous exchange rates when traveling and sometimes a surcharge for using the card overseas. I pay no fees for my cards, get cash back, and they just keep raising my credit limit once in a while hoping that I'll overextend myself and for once carry a balance.

For a while I was anti-credit cards and paid everything with my debit card. My GF does that now and I'm trying to educate her on how to use CCs to work for you.
ie. I first got my Amex Blue because it extended any electronics purchase's warranty 1 year.

 

[Paul]

Interesting article in this week's Parade Magazine: http://www.parade.com/articles/editions/2008/edition_08-10-2008/2Credit_Cards

You read PARADE magazine???!!!???

 

[andyzee]

You read PARADE magazine???!!!???

Easy read on toilet.

 

[Paul]

Easy read on toilet.

And I supPOSE you like the pithy humor of "The Lockhorns" comic strips as well??

 

[andyzee]

And I supPOSE you like the pithy humor of "The Lockhorns" comic strips as well??

Nah, never got into that one.

 

[GrilledSteezeSandwich]

bump..I used my credit card today.....

 

[GrilledSteezeSandwich]

You read PARADE magazine???!!!???

That's what I was thinking as well although there was a good article on Billy Ray Cyrus the other week,,,,doh..

 

[riverc0il]

"Even credit-card customers who play by the rules can be slammed with huge costs. Paying off your bills in full every month—as 60% of U.S. consumers always or usually do—doesn’t endear you to the credit-card companies. Once, lenders sought such customers. Today, credit-card companies call them “deadbeats,” because they make the least money off them."

I guess I'm a deadbeat

I make the credit card companies loose money, heh! I get a $25 gift card for wracking up a certain number of points, so I charge everything to my card (even business expenses for which I am going to get reimbursed) and pay it off in full every month. Credit card companies pay money to service me including mailings and internet use and then I make them pay by sending me at least $100 worth of gift cards per year. Great system, IMO. Plus, I can review all my monthly purchases for an entire month all at once since I only pay cash for food or anything less than $10.

 

[GrilledSteezeSandwich]

I make the credit card companies loose money, heh! I get a $25 gift card for wracking up a certain number of points, so I charge everything to my card (even business expenses for which I am going to get reimbursed) and pay it off in full every month. Credit card companies pay money to service me including mailings and internet use and then I make them pay by sending me at least $100 worth of gift cards per year. Great system, IMO. Plus, I can review all my monthly purchases for an entire month all at once since I only pay cash for food or anything less than $10.

The rewards points are steezy...I've received gift cards for Red Lobster, Pizza Hut, Outback Steakhouse, Borders and Sports Authority. The apartment complex I'm moving into accepts credit cards for rent payments..that means more gift cards...steezy..

 

[wa-loaf]

I make the credit card companies loose money, heh! I get a $25 gift card for wracking up a certain number of points, so I charge everything to my card (even business expenses for which I am going to get reimbursed) and pay it off in full every month. Credit card companies pay money to service me including mailings and internet use and then I make them pay by sending me at least $100 worth of gift cards per year. Great system, IMO. Plus, I can review all my monthly purchases for an entire month all at once since I only pay cash for food or anything less than $10.

They charge the retailers a fee on each transaction you make, so they are still making a few bucks off of you. They have all the bases covered.

 

[GrilledSteezeSandwich]

They charge the retailers a fee on each transaction you make, so they are still making a few bucks off of you. They have all the bases covered.

For sure..I think it's 3%...Since we are a retail establishment..we do a good deal of credit card business. People want to get some points when they buy a tribute to a loved one. Plus it's known instantly whether the purchase clears..as opposed to personal checks. Cash is king..but there is something steezy about running a bar tab on your credit card and paying it off a month after the hangover wears off.

I don't know if anybody has ever played credit card roulette at a restaurant. When the bill comes..each person gives their credit card to the server. The server shuffles the cards and puts them behind their back..then pulls out each card one by one and the last one has to pay the tab.

I think the average person in Generation Y (20s..low 30) has $8,000 in credit card debt..which means $1-2,000 in annual interest charges..

The credit card companies have it made...if the economy is good..people are more free with their money and use their credit cards alot. If the economy is bad..people use their credit cards alot for short term loans..

 

[riverc0il]

They charge the retailers a fee on each transaction you make, so they are still making a few bucks off of you. They have all the bases covered.

I am a retailer manager and see the books on a monthly basis. Most people have no idea how credit card companies are raping most retailers for using credit cards. But as a retailer, you don't really have any choice in the matter.

 

[andyzee]

I am a retailer manager and see the books on a monthly basis. Most people have no idea how credit card companies are raping most retailers for using credit cards. But as a retailer, you don't really have any choice in the matter.

I don't even know why retailers would use AmEx, If I'm not mistaken, they charge the highest rates and their support, from the retailers perspective, is the worst I have ever seen.

 

[severine]

I don't even know why retailers would use AmEx, If I'm not mistaken, they charge the highest rates and their support, from the retailers perspective, is the worst I have ever seen.

Yeah, I think you're right. I accept credit cards for my side business and (as a small timer... I have limits as to how much I can process to keep my costs down) I have to pay an annual fee of $29.95, plus 3.25% + $0.35 per transaction for VISA/MC/Discover, but AmEx is 3.75% + $0.35 per transaction. And I can't refuse to take AmEx or I'd be in violation of my agreement. It's all or nothing. I also can't impose minimum charges to make it more worthwhile the fees I have to pay as the "retailer." I know that the company I use to process cards has lower fees for higher volume accounts, though, so I imagine regular retailers' fees aren't quite as high.