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Old 05-19-2009, 10:24 AM
 
1,403 posts, read 3,259,235 times
Reputation: 1311

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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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Old 05-19-2009, 10:53 AM
 
7,100 posts, read 25,461,946 times
Reputation: 7393
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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Old 05-19-2009, 10:55 AM
 
Location: southern california
61,305 posts, read 79,673,830 times
Reputation: 55458
they are shooting themselves in the foot.
the good news people will learn that free money
is not free.
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Old 05-19-2009, 11:02 AM
 
Location: Marion, IN
8,191 posts, read 29,297,554 times
Reputation: 7295
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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Old 05-19-2009, 12:16 PM
 
1,403 posts, read 3,259,235 times
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Quote:
Originally Posted by Racelady88 View Post
Seems to me that a $35 annual fee in exchange for an airline ticket (for example) is a pretty fair trade.
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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Old 05-19-2009, 03:01 PM
 
Location: Wake Forest, NC
835 posts, read 3,768,285 times
Reputation: 649
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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Old 05-19-2009, 03:19 PM
 
Location: Sacramento
2,568 posts, read 6,247,552 times
Reputation: 1924
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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Old 05-19-2009, 03:25 PM
 
Location: southwestern PA
20,419 posts, read 40,928,835 times
Reputation: 39321
I'm not concerned....
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Old 05-19-2009, 04:10 PM
 
Location: Houston, Texas
10,420 posts, read 46,522,355 times
Reputation: 10467
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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Old 05-19-2009, 04:26 PM
 
985 posts, read 2,445,509 times
Reputation: 730
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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