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In fact I will go further -- that whole NYT article is a perfect example of how "tales get spun".
I agree. Regarding the 0% offer, there are still many available, depending on one's credit. BTW keep in mind that, just because you already have a Citi or Chase card, it doesn't mean you can't get another one. I've had as many as 3 Citi cards because I wanted to get a new 0% offer. It depends on your payment history of course, but you can ask the company to lower the limit on your existing card and apply it to the new one.
Just a note..if anyone is wondering why I didn't close the account I wasn't using, it's because it actually helps your credit score to have active cards with no balances, as crazy as it sounds. When running your soc sec # the computer looks at your open credit line and the percentage you've used. So if you have 1 card with a $5,500 limit and keep an outstanding balance of around $5,000 it shows you are always too close to your maximum. However, if you owe the same $5,000 on 4 different cards with a total $20,000 credit line, it shows you charged only 25% of your limit. Really nuts.
As already stated, if you get a 0% transfer offer, unless it also states "for purchases and transfer balances" you should never purchase anything on that card, because you will be charged the current interest rate for purchases and any payment you make will go to the balance with the higher interest rate. You also should carefully look at the transfer fee. I know 3% doesn't sound like much, but I've spoken to people who don't stop to consider it is a one time 3% fee for the amount you transfer, not per year. So that's like getting a $90 annual fee on a "free card" if you transfer $3,000.
There's one more thing I want to mention. Although credit history is very important, it also helps if you are a squeaky wheel. It doesn't always work, but I've gotten plenty of charges waived by various companies, not just credit cards. I got a $50 credit from AT&T because they didn't meet a cell phone offer, but I had to complain vehemently. If they want your business, they'll listen.
To back up any dispute you have, it's important to always keep a copy of any offer you get in the mail, or if you apply online, print it. Make a copy of any application you mail. In 2007 I got an 18 month 0% balance offer with a new Chase Freedom card with 0% bal transfer fee and 0% interest on purchases. It was in big, bold letters. 0% all around. However, a few months later, I decided to transfer another balance and was charged 3%. When I called the cust rep explained the free balance transfer only applied to the initial transfer when I applied for the card. Even with a magnifying glass I couldn't find this fee. I asked her where it was stated. She said it wasn't, but it was implied. I told her that we had a contract and as long as I met my end, Chase would be violating our agreement and committing fraud. She put me on hold, came back a few minutes later, and waived the $75 charge, but said she was making a note in the computer that it was the last time since I was now aware of their policy.
Don't ever let them get away with this garbage!
Last edited by justNancy; 05-21-2009 at 01:34 PM..
Reason: fix typo
Chet is correct in his posts. Regarding the 0% offer, there are still many available, depending on one's credit. Keep in mind that just because you already have a Citi or Chase card doesn't mean you can't get another one. I've had as many as 3 Citi cards because I wanted to get a new 0% offer. It depends on your payment history of course, but you can ask the company to lower the limit on your existing card and apply it to the new one.
Just a note..if anyone is wondering why I didn't close the account I wasn't using, it's because it actually helps your credit score to have active cards with no balances, as crazy as it sounds. When running your soc sec # the computer looks at your open credit line and the percentage you've used. So if you have 1 card with a $5,500 limit and keep an outstanding balance of around $5,000 it shows you are always too close to your maximum. However, if you owe the same $5,000 on 4 different cards with a total $20,000 credit line, it shows you charged only 25% of your limit. Really nuts.
As already stated, if you get a 0% transfer offer, unless it also states "for purchases and transfer balances" you should never purchase anything on that card, because you will be charged the current interest rate for purchases and any payment you make will go to the balance with the higher interest rate. You also should carefully look at the transfer fee. I know 3% doesn't sound like much, but I've spoken to people who don't stop to consider it is a one time 3% fee for the amount you transfer, not per year. So that's like getting a $90 annual fee on a "free card" if you transfer $3,000.
There's one more thing I want to mention. Although credit history is very important, it also helps if are are a squeaky wheel. It doesn't always work, but I've gotten plenty of charges waived by various companies, not just credit cards. I got a $50 credit from AT&T because they didn't meet a cell phone offer, but I had to complain vehemently. If they want your business, they'll listen.
To back up any dispute you have, it's important to always keep a copy of any offer you get in the mail, or if you apply online, print it. Make a copy of any application you mail. In 2007 I got an 18 month 0% balance offer with a new Chase Freedom card with 0% bal transfer fee and 0% interest on purchases. It was in big, bold letters. 0% all around. However, a few months later, I decided to transfer another balance and was charged 3%. When I called the cust rep explained the free balance transfer only applied to the initial transfer when I applied for the card. Even with a magnifying glass I couldn't find this fee. I asked her where it was stated. She said it wasn't, but it was implied. I told her that we had a contract and as long as I met my end, Chase would be violating our agreement and committing fraud. She put me on hold, came back a few minutes later, and waived the $75 charge, but said she was making a note in the computer that it was the last time since I was now aware of their policy.
Don't ever let them get away with this garbage!
I have done the same sorts of things -- they "market" this stuff and pay people huge money to make sure the offers go out with no "loopholes" so I have no ill feelings about taking every nickle they offer in incentives!
I was reading a blog the other day complaining about the thieves at Bank of Am and I've never gotten any fees when I've had checking/savings or credit cards with them. If someone goes over their limit, of course they're going to get charged. If someone writes a check and doesn't have the money, then it's a loan, so of course they'll be a fee. I feel badly for struggling families who are strapped (been there) but I'm not sure I agree with what Congress is doing, so I need to read about it more. I've always been a strong consumer advocate, but I also realize banks penalize those who don't play by the rules. Unfortunately, so many people get into trouble through no fault of their own because of illness or job loss.
I'm a reporter with the public radio program Marketplace. We're a nationally syndicated show that airs on NPR member stations. I'm working on a story that basically asks what would happen if a large portion of credit card users stopped using their cards, and reverted to cash instead. (Clearly, we have to distinguish between those who do this willingly, and those who do it unwillingly.) I saw that some folks on this threat said they would drop their credit cards all together if new fees were instituted or existing ones rose to high. And I was wondering if I might be able to interview some of you next week for the story.
The interviews would be recorded, not live, and would take maybe 20 or 30 minutes. I'm based in Boston and would love to meet up with people in person if you're in the area. If not, we could talk about other options. In any case, please give me a shout when you can and thanks so much. I'm can be reached at ittycity@comcast.net
I alway use a CC online, and that's how I do a majority of my shopping these days especially if there are points or rewards to be had and they offer extended warrenties or other protection. If interest gets charged from day one I will rethink my stragey, perhaps doing an online transfer the same day or something. But I won't pay for a CC. I have all the big players (Visa, MC, AE, Discover) and don't really need more than one so whoever charges me a fee will get cut.
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.
I like the way you think. Every credit card I've paid off, I closed the account because I figure since I paid it off, why keep it around. I only have 2 credit cards with a generous credit line/limit of over $10,000+
Quote:
Originally Posted by Kaye02
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.
Co-sign 100%. What you can pay for with a credit card, you can just as well pay for in cash.
I have been sitting and waiting for those notices of fees and not got any. Until I do I will keep taking the service plus rewards while paying off monthly. i did talk to a banker firend and he said most those accounts not worth servicing the accounts is what he see get fees added. He said a acoount spending over like a thousand a month is unlikely to see a fee because they will have other offers to do it.That by the way is 60 a month in tranaction fees on 1000 dollars with the normal rate and 720 dollars a year. It doesn't make much sense to give up 720 for 60 dollars a year;he pointed out.
I have been sitting and waiting for those notices of fees and not got any. Until I do I will keep taking the service plus rewards while paying off monthly. i did talk to a banker firend and he said most those accounts not worth servicing the accounts is what he see get fees added. He said a acoount spending over like a thousand a month is unlikely to see a fee because they will have other offers to do it.That by the way is 60 a month in tranaction fees on 1000 dollars with the normal rate and 720 dollars a year. It doesn't make much sense to give up 720 for 60 dollars a year;he pointed out.
yeah still waiting for the hammer. Seems like I have gotten the benefits of the credit reform act with none on the downside. I love the new statements that show interest and fees paid year to date and love the zero. Can't wait to see it that way at the end of the year.
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Atta girl!
