7 months ago
Tuesday, May 19, 2009
BS
If this happens, I will not be using a credit card anymore. I really only use them for the points now and I pay it off every month....way to punish people that do the right thing....oh wait, doing the right thing doesn't benefit the credit card companies...does this make sense to anyone else? Don't they think that the people who pay it off every month will stop using it (cause they obviously have the money to pay for it and are probably like me and just do it for convenience) and then they will not get the fees from the merchants...so, not only will they not get my annual fee or my interest, but they will also not get the 1-3% that they charge every store I shop in for my transaction. I don't understand how they will make more money doing this....or am I just one of only a few people who use credit cards the way that I do and everyone else will just pay more fees? I understand that the law is to keep them from gouging people but they way they are going to make up for the lack of funds just doesn't make sense to me....good thing I wasn't an econ major.
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6 comments:
That's crazy! It's like everything else lately though - people who follow the rules get punished. Those of us who have paid our mortgages on time every month get nothing, while people who chose not to pay their mortgages get help so they don't end up in foreclosure. My mom did a re-finance recently and had to close her line of credit in order to do so just because she lives in a condo (apparently condo-dwellers have one of the highest rates of default) - no consideration for the fact that she always makes her payments on time. So it sucks, but on a certain level, it does not surprise me. Maybe we should all start becoming deadbeats then we'll get the perks!
Dave's uncle works for Chase and mentioned a few years ago that they were moving toward this. This will be when we also stop using the card, but then you can't close all your accounts b/c your credit score would plummit. So there's your catch 22 . . . And, I agree with Rebecca about mortgages.
I don't think people chose not to pay their mortgages. (i'm sure you didn't mean it that way) I think we have had a really bad economy and people lose their jobs or were uninformed as to what would happen with adjustable/interest only mortgages when they got them. (if tougher lending guidelines had been in place this meltdown would not have happened) I agree that it is unfortunate that timely bill paying people aren't getting to renegotiate their mortgages really sucks, but in ways those that are getting to are helping to hopefully stop plummeting house values which in the end will help the timely bill payers.
@Erin...I have enough mortgages to keep up the credit score :-)
It does stink and at a certain point I think a lot of people will stop using the cards (be it immediate interest or annual rate gets too high to justify the rewards). On the flip side even though it sucks, they are businesses that are there to make a profit and not just provide a convenient way to spend money (and give you rewards for that convenience). We will be watching too and would not be surprised if in a few years we switch to using debit cards instead of credit cards. A little more work, but free.
Yeah, I understand them wanting to make money..and I guess I can't blame them for that the same way they can't blame me for walking away :-) They do make money off my though even with me paying on time. They make about 3% (cause I use Amex)on every purchase I make...which is almost all my purchases for the month...so it is not like they aren't making anything. I am like you and will just watch it and might switch to debit cards...same convenience and free (for now).
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