new credit card fees?!!? (pay, company, interest rate, closing)

[Gandalara]

Originally Posted by StoneOne

Yes, but if a customer rarely uses the card, the merchant fees are not going to be enough to cover the costs.

There are a lot of us who use a card for everything -- and then pay it off every month.

Using a very low-ball figure of $600 a month charged x 2% merchant fee (again, low) = $12 a month.

That's $144 a year profit from just one cardholder who pays in full every month.

More than a $99 annual fee.

The break even point for the card companies would be between $400 - $450 charged each month.

(Ghods, I hope my math is right! It's so embarressing when I see a mistake after I hit enter )

[Gandalara]

Originally Posted by Tallysmom

You young whippersnappers are too young to remember, but all Visa/Mastercards used to charge annual fees.

JC Penneys didn't though

A person never forgets her first

[sonarrat]

Originally Posted by Chromekitty

LOL....
pay it off except 10/20 dollars a month...

Then you get hit with their "minimum finance charge." For carrying a 10 dollar balance you pay 2 bucks.. that's 240% APR.

[ct4life]

Here's the thing with me, I don't necessarily mind an annual fee. I got my AmEx knowing it had one, but for these other cards to start brining them into the picture after having the cards for years kind of isn't fair. And regarding the whole cash thing, I do use cash. I stopped using credit cards for everything and I already got punished for it. One card I stopped using for months cut my limit down to $200 just bc I wasn't using it!
I believe it's unfair to be charged for not using a card. There's nothing to even do about it either bc if I went ahead and just closed those cards, then my credit would be affected!

[StoneOne]

Originally Posted by ct4life

I believe it's unfair to be charged for not using a card. There's nothing to even do about it either bc if I went ahead and just closed those cards, then my credit would be affected!

You're credit won't be affected that much, and unless you're in the market for a mortgage in the near future, it doesn't much matter anyway. Your credit score will correct itself soon enough if you do other things properly.

As for the fairness of charging for not using a card, you have to remember that idle accounts are an expense for card issuers. They have to pay for things like pulling cardholders' credit records and insuring cards against fraudulent use.

[Irish Eyes]

"Citigroup, meanwhile, has started charging annual fees to card holders who don't put more than a specific amount on their cards, typically $2,400 a year. "

This doesn't seem too outrageous. It really doesn't seem like a stretch to average $200 a month on a credit card. I put EVERYTHING on my card to get rewards points. If I just paid for groceries with it I'd easily make that minimum.

[broadbill]

This again? haha

Let them charge fees for paying off on time....if free market principles apply, then there will also be banks who will offer no-fee cards to capitalize on those who don't want to pay fees. I don't see what the problems is. People will choose what credit cards they carry based upon where they see value.

[zendrive]

Originally Posted by ct4life

Latest bank fee is for paying off credit card on time every month - USATODAY.com

are you kidding me?! This should be illegal!

It really blows my mind that consumers would even do business with these sharks, but I have a solution.

Most Credit Union issued credit cards do not charge exorbitant fees, although some charge nominal annual fees. Because there isn't a profit motive for the credit unions, I can see them as a positive alternative to traditional bank credit cards.

The only drawback to a CU issued credit card is that, say you have an auto loan that you are current on with the same credit union, it can be used as collateral for the card should you default on the credit card.

Right now, my CU issued card carries a 7.9% fixed interest rate and no fees. There are good cards to be found, I just choose not to deal at all with any kind of hyperbank (Wells Fargo, BoA, etc).

[zendrive]

Originally Posted by StoneOne

You're credit won't be affected that much, and unless you're in the market for a mortgage in the near future, it doesn't much matter anyway. Your credit score will correct itself soon enough if you do other things properly.

As for the fairness of charging for not using a card, you have to remember that idle accounts are an expense for card issuers. They have to pay for things like pulling cardholders' credit records and insuring cards against fraudulent use.

Oh, the pity I feel for those poor, starving credit card companies with no one using their cards. So many sit idle

[whoisjongalt]

I can't believe anyone is still defending credit card companies!!! Maybe you work for them. I, for one, have had it. They've become glorified loan sharks charging 20 and 30% to people with perfect credit. They can go to hell. I'm closing all of my accounts and paying cash.