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And who would that be? The only way Democrats could pass the bill in time for the holidays would be with the support of the GOP -- all but five of which voted for it initially.
BANKS are big business, you know the ones offering credit cards
Quickly getting to one card myself. Had some cards I should have canceled long ago, but never got around to it.
As an example, I had one card with a 15k available balance that I rarely ever used. It had an annual fee, so I often thought about canceling it. I received a letter saying they were dropping by credit limit to 1k. When I called they suggested I should consider keeping it open in case of emergencies. Frankly that is why I had kept it in spite of the annual fee.
Another card went from 8% interest to 22%. Canceled that one also. BTW, I never had any problems paying on the card.
Hopefully not all vendors will go this route. I think many of these vendors are being short sighted. I don't understand the business model that punishes your best customers. Best being defined as routinely borrowing without a history of payment problems.
Oh well, like I said rapidly getting down to a single card.
I've never been late on my cards either and always paid over the min balance. I guess I've never had a balance over $3K, which is why it was easy for me to cancel my cards and just pay them off. NOw i'm getting the, "if you reopen you can have this interest rate" yeah, but for how long.
CC regulation that passed was stupid and another failed attempt at implementing control which will only backfire screwing the consumer. They did this many years ago to the industry and it caused a huge amount of problems until regulations were relaxed.
Due to the legislation passed already, they raised my rates (they are doing it across the board to be able to afford the fact that the delinquents will now not have any penalties) and halved my reward points (I used to make 500 or more a year using the CC having them pay me rather than me pay them interest). All this legislation does is reward the irresponsible and penalize the responsible.
were do you get that deliquent payers have no penalties from
This is why i've kept low balances on my credit cards. I've cancelled two so far when they jacked up my rate from 9.5% to 18 and 22%. I now only have one credit card and since i barely use it, i constantly get these annoying feature enhancement phone calls.
That's nice for you. But what if you were the AVERAGE American consumer, and you had, what, the average is six credit cards, and the total debt is something like $6,000. If you responsibly made your payments on time each month, were never late, paid over the minimum, do you think when they jack up your rate to 26%, that you can just cancel each card? I mean, you can, obviously, cancel all your cards. But what impact does that have on your credit score? Cancelling a card can have a negative impact on your score, cancelling all of them can have a profoundly negative impact, because you are cancelling your ability to borrow. Then, when you do need to borrow, to buy a house or a car or even to go back to school, your credit score places you in a high-risk category where you pay even higher interest rates, IF you can get the loan to begin with. Some responsible behavior is not rewarded by credit card companies, and that's something that you have to consider.
Maybe in some cases, but my bank which I have been a member with for over 25 years and who has always been fair and straight with me basically say that they have to in order to balance out the cost related to the caps that are coming. CC companies make back a lot of their money on fines and penalties associated with rate hikes to customers who fall in bad standing. Take away their ability to compensate based on those who are bad and it pushes the company into a direct loss. So they must compensate across the board to be able to adjust for the fact that they can no longer penalize those who actually deserve it.
I don't like it, but I understand it. The responsible card holders are carrying some of the burden of those who are irresponsible. The only other option as I said is for the CC company to start taking losses. The better business they do, the more benefits they offer the good customers. Some might think it profiting on the poor, but it really is profiting on the irresponsible and personally I have no problems with them doing that. It is one of the downfalls for being irresponsible and there should be a price for such.
oh poor banks they have it so tough let them fail. stop paying ceos billions of dollars.
Maybe in some cases, but my bank which I have been a member with for over 25 years and who has always been fair and straight with me basically say that they have to in order to balance out the cost related to the caps that are coming. CC companies make back a lot of their money on fines and penalties associated with rate hikes to customers who fall in bad standing. Take away their ability to compensate based on those who are bad and it pushes the company into a direct loss. So they must compensate across the board to be able to adjust for the fact that they can no longer penalize those who actually deserve it.
I don't like it, but I understand it. The responsible card holders are carrying some of the burden of those who are irresponsible. The only other option as I said is for the CC company to start taking losses. The better business they do, the more benefits they offer the good customers. Some might think it profiting on the poor, but it really is profiting on the irresponsible and personally I have no problems with them doing that. It is one of the downfalls for being irresponsible and there should be a price for such.
Wait irresponsibility???? who gave a 10k limit to someone making 10k a year who already had 3 other cards? The banks did, they are just as guilty but they get in trouble and have no penalties.
When I went to buy my house, i had NO open lines of credit. Why? Swore them off and wanted to be more financially responsible.
As a reward, My credit was , while not bad, not good enough for a fixed interest rate (combined with my self employed status, anyway).
Sooo.. had open CC's AFTER I got the house to raise the score.
It did, and I did use the cards. I've paid on time, always over the minimum due. However I ended up having to sell my house short (and at one point did stop paying my mortgage because I just couldn't do it at the new payments.. and no it wasn't one of those low teaser rate ARMS. .. just an FYI). Mind you the entire time all my other bills and credit cards were paid on time, and yes over the minmum. Irregardless the CC took it upon themselves to start raising my interest rates.. which didn't help me any during a tough time and made it worse. Then you tack on all the late fees while you're struggling and THAT makes it work. Basically you get sucked into a vortex you can't get out of..
They are absolute crooks. I can cancel all the card sure , but then where will I be. Back to where I was with no credit card debt or open lines of credit to tempt me (yes, it's tempting) but as a result no real credit history.
Credit cards basically have Americans by the balls.. IMO
That's nice for you. But what if you were the AVERAGE American consumer, and you had, what, the average is six credit cards, and the total debt is something like $6,000. If you responsibly made your payments on time each month, were never late, paid over the minimum, do you think when they jack up your rate to 26%, that you can just cancel each card? I mean, you can, obviously, cancel all your cards. But what impact does that have on your credit score? Cancelling a card can have a negative impact on your score, cancelling all of them can have a profoundly negative impact, because you are cancelling your ability to borrow. Then, when you do need to borrow, to buy a house or a car or even to go back to school, your credit score places you in a high-risk category where you pay even higher interest rates, IF you can get the loan to begin with. Some responsible behavior is not rewarded by credit card companies, and that's something that you have to consider.
Everything you say is legit DC. The reason I have taken the approach is several reasons.
- It has taken me 10 years after my divorce to clean up my credit. You see my ex-husband as well as I were very iresponsible.
- I had tones of credit cards with low credit limits originally, so as the companies began raising my limits, i still stuck with the model of only spending within my means. Being a single mom of 3 with the father still the irresponsible parent, i had no choice. I had to stay in that mindset, god forbid I loose my job or I get hurt, who's going to pay the bills?
- My mortgage broker stated thing concerning cancelling the cards I had and the impact to my credit score. But once these banks began increasing my interest rate and droping my credit limit, my score was impacted anyway, so I paid the cards off first then cancelled them. Score still remained the same. I will be closing on my first home tomorrow (proud of myself)
You can't let these banks and creditors scare you inot continuously using their cards and staying hostage to their increased fee's. I still have one major credit card that I maintain the balances, along with tones of student loans Thanks to the two kids in college.
This is why i've kept low balances on my credit cards. I've cancelled two so far when they jacked up my rate from 9.5% to 18 and 22%. I now only have one credit card and since i barely use it, i constantly get these annoying feature enhancement phone calls.
Then its clear you do not need a patronizing entity looking over your shoulder as you have done the right thing on your own volition.
Congrats on securing your own destiny.
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let them fail. stop paying ceos billions of dollars.
