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05-19-2009, 10:24 AM
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Senior Member
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Join Date: Apr 2008
790 posts, read 282,866 times
Reputation: 456
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Credit card companies coming after those who pay balance off every month
From NY Times:
http://www.nytimes.com/2009/05/19/bu...pagewanted=all
As one of those consumers (1/3 of credit card holders) who pay their balance off every month it looks like the free ride of rewards and using someone else's month for a month might be coming to an end.
Doesn't really matter though (at least for me)....I figure if you can pay off your credit card every month, you can just as easily pay with cash on the spot. I'll just stop using credit cards if the deal isn't as good or if I have to pay a fee to have them. No big deal. |
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05-19-2009, 10:53 AM
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Senior Member
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Join Date: Jun 2007
3,553 posts, read 3,621,701 times
Reputation: 1299
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CC cards are more convenient than carry a wad of cash. No doubt about that. But I would also stop using mine if they start charging me for the card even though I pay off each month.
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05-19-2009, 10:55 AM
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ichigo ichie 1 time 1 meeting unprecedented
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Join Date: Aug 2007
Location: southern california
27,147 posts, read 10,551,649 times
Reputation: 17498
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they are shooting themselves in the foot.
the good news people will learn that free money
is not free.
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05-19-2009, 11:02 AM
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Support Jeff Hardy! Innocent until proven guilty!
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Join Date: Jul 2006
Location: Motel 6 w/ 2 cats & 1 dog
5,767 posts, read 5,266,243 times
Reputation: 3864
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Seems to me that a $35 annual fee in exchange for an airline ticket (for example) is a pretty fair trade.
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05-19-2009, 12:16 PM
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Senior Member
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Join Date: Apr 2008
790 posts, read 282,866 times
Reputation: 456
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Quote:
Originally Posted by Racelady88
Seems to me that a $35 annual fee in exchange for an airline ticket (for example) is a pretty fair trade.
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Sure...but who is to say those types of programs will be continued into the future? Remember the main reason why cc companies are starting to squeeze the "deadbeats" (those of us who pay off our balance each month) is because they are trying to maintain their revenue. Being generous with rewards programs eats into their bottom line.
Maybe they will increase the annual fee in order to support those reward programs. At what point does the annual fee become too much to warrant keeping the card for a free airline ticket? $50? $100? |
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05-19-2009, 03:01 PM
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Loan Officer
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Join Date: Feb 2009
Location: Wake Forest, NC
338 posts, read 167,359 times
Reputation: 135
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Don't forget that they get transaction fees from the merchant. Even if you pay off your cards each month the bank is making money.
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05-19-2009, 03:19 PM
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Mommy to a toddler and a preschooler.
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Join Date: Apr 2008
Location: Sacramento
1,727 posts, read 818,943 times
Reputation: 889
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They might reduce the rewards programs but they will not start charging fees. They make too much money from transactions fees. The media just likes to sensationalize things.
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05-19-2009, 03:25 PM
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Senior Member
Status:
"party time!"
(set 1 day ago)
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Join Date: Apr 2007
Location: southwestern PA... where it is beginning to look a lot like Christmas!
1,193 posts, read 632,267 times
Reputation: 543
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I'm not concerned....
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05-19-2009, 04:10 PM
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Senior Member
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Join Date: Nov 2007
Location: Kemah Texas
7,349 posts, read 4,735,754 times
Reputation: 3889
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I suspect annerk will either not reply to this thread or come on and deny the story is true. Either way he will defend his beloved banks to the death.
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05-19-2009, 04:26 PM
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[Insert witty comment here]
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Join Date: Oct 2008
936 posts, read 366,409 times
Reputation: 595
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If my card company tries to charge me an annual fee I'll just say sayonara. I can always use cash or a debit card, I don't buy much anyways. Do they really think people who can pay every month actually need the cards? It's just for convenience, for most, and can be dropped pretty easily.
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