To our good customers . . . here we come.

[ProfMoneyWise]

Credit-Card-Industry-Aims-to-Profit-From-Sterling-Payers: Personal Finance News from Yahoo! Finance

This is for all who pay their credit card bills on time an in full.

This is for all who are not part of the problem and have been responsible.

Here they come.

 

[ItalianScallion]

Ain't it great? I heard about one lady whose credit line was reduced from $18,600 to $2,400 through no fault of her own and as a result her credit rating went down. She paid her balances on time and was never late. The credit company just lowered it on her. Now she is forced to pay higher interest rates for a mortgage that she is trying to get because of it.

I no longer use credit cards. I pay cash for what I buy or I don't buy it. What I have is paid for.
Progressive Insurance said they couldn't give me their "best rate" because I have no credit card or payment schedules. I told them that I pay cash for my things and I have an excellent credit rating. They said we see that but it doesn't help your rating with us. We need to see a payment history. I told her that I pay my insurance premium in full don't I? And I have for the last 10 years! She said yes. I said, that's your payment history, now either give me the best rate or YOU'RE history with me! I'll go elsewhere for insurance.
She said she will present it to her boss. I told her I need to know what the difference in premium is and I need to hear from you before I send in my payment. The difference was $10. That's all! I said is it worth $10 for you to lose a longtime customer? They lowered the premium for me. Unbelievable!!! What the hell kind of world are we living in? The conscientious get the shaft all the time.

 

[ProfMoneyWise]

Well done, you get it.

I do not have a credit card either. I too have had the same discussions with providers. In fact I ask for the cash discount or I am walking.

My ultimate goal is to have a FICO score of zero. FICO is based upon five factors that equate to "how am I doing at being in debt and agreeing to may more for something than it is worth?"

I refuse to participate in the recession and with others like you have decided to operate here in the "ME-conomy."

I try not to editorialize but suffice it to say the legislation signed yesterday should be viewed as shameful by all who feel we need Congress (who have no money management skills at all) to pen a bill to protect us from the mean old credit card companies. They can come up with as many laws as they want but no amount of new laws will fix the problem.

The problem resides in the mirror. The ills we hear about everyday are a symptom of the problem, not the cause.

Again, great thinking on your part. The average household consumer debt is $10K these days and is spread across 9 cards/loans. Seven out of ten are living check to check and have no emergency fund. In short, come on over, there is plenty of room here with just the three of us.

 

[Vince]

Ain't it great? I heard about one lady whose credit line was reduced from $18,600 to $2,400 through no fault of her own and as a result her credit rating went down. She paid her balances on time and was never late. The credit company just lowered it on her. Now she is forced to pay higher interest rates for a mortgage that she is trying to get because of it.

I no longer use credit cards. I pay cash for what I buy or I don't buy it. What I have is paid for.
Progressive Insurance said they couldn't give me their "best rate" because I have no credit card or payment schedules. I told them that I pay cash for my things and I have an excellent credit rating. They said we see that but it doesn't help your rating with us. We need to see a payment history. I told her that I pay my insurance premium in full don't I? And I have for the last 10 years! She said yes. I said, that's your payment history, now either give me the best rate or YOU'RE history with me! I'll go elsewhere for insurance.
She said she will present it to her boss. I told her I need to know what the difference in premium is and I need to hear from you before I send in my payment. The difference was $10. That's all! I said is it worth $10 for you to lose a longtime customer? They lowered the premium for me. Unbelievable!!! What the hell kind of world are we living in? The conscientious get the shaft all the time.

Been with GEICO for over 20 years. Pay them by check. Never a problem with them. I'll chop my credit cards and use a check card or a check.

 

[ProfMoneyWise]

Vince is number 3!

Ok, seven out of ten are living check to check and that same number is saying they would lose the house right after losing the job.

Can we start a Southern Maryland movement to be different?

Top 4 relationship killers are:

Money (number 1)
followed by how to raise the kids, religion and in-laws.

Do we dare to be different down here? Living in a world where you do not spend what you do not have. Where you do not agree to overpay for things. Where when you say, I can afford that" you are not referring to the payment is not limiting . . . rather . . . it is liberating.

Give being debt free a try. If you do not like it you can always go back in. That does not take long at all.

 

[Vince]

Vince is number 3!

Ok, seven out of ten are living check to check and that same number is saying they would lose the house right after losing the job.

Can we start a Southern Maryland movement to be different?

Top 4 relationship killers are:

Money (number 1)
followed by how to raise the kids, religion and in-laws.

Do we dare to be different down here? Living in a world where you do not spend what you do not have. Where you do not agree to overpay for things. Where when you say, I can afford that" you are not referring to the payment is not limiting . . . rather . . . it is liberating.

Give being debt free a try. If you do not like it you can always go back in. That does not take long at all.

I don't know that my father ever had a credit card. Maybe when he was older, but I was always taught that you can't spend the money if you can't afford to pay it back. If you have to use a credit card to pay for something and you don't have the money to pay it off, you don't need it, whatever it is you were going to buy. If you're using a credit card for a mortgage, food, etc., because you don't have the money, then you've gotten in over your head to begin with and need a class on how to manage your finances.

 

[GWguy]

I don't know that my father ever had a credit card. Maybe when he was older, but I was always taught that you can't spend the money if you can't afford to pay it back. If you have to use a credit card to pay for something and you don't have the money to pay it off, you don't need it, whatever it is you were going to buy. If you're using a credit card for a mortgage, food, etc., because you don't have the money, then you've gotten in over your head to begin with and need a class on how to manage your finances.

Bingo. If I don't have the cash to back up a purchase, I do not buy it, regardless of how it's being paid for (check, debit card, credit...). I'm one of those that always pays off a credit purchase immediately and rarely if ever have an interest payment. So now I get penalized for being good with my finances.

I got a similar note from Progressive about "not getting the best rate". In my case, it's because I haven't had a car loan in over 25 years. I use a credit union secured loan which is far better, but now again, get penalized for that.

I'm pretty close to living paycheck by paycheck, BUT... I have enough put aside that I can pay off the mortgage if I get laid off.

 

[Chasey_Lane]

How convenient! Just yesterday I received notice that one of my cc interest rates was more than doubling in January 2010. I pay this card off in full every month and well before the due date. I plan to pay my last bill next month and not charge anything on it anymore.

 

[dn0121]

We live in a free market, there will be other credit cards to choose from that won't charge you these fees. This is just scare tactics to bring in ratings. I travel a lot and refuse to use my debit card for deposits with hotels and rental car companies. I also pay off my card every month. This will have little affect on me.

 

[Cowgirl]

I don't have any credit cards right now. I'm still paying off the one from college, but it's almost paid off. I can't see why I'll ever need to get one again. I can do everything with my Visa debit that I could do with a credit card, except rack up debt. Boo credit cards!

 

[dn0121]

I don't have any credit cards right now. I'm still paying off the one from college, but it's almost paid off. I can't see why I'll ever need to get one again. I can do everything with my Visa debit that I could do with a credit card, except rack up debt. Boo credit cards!

I just don't like someone being able to put a hold on money in my checking account just because I am at a hotel or renting a car. If it was cleared instantly then I would do it, but you give up some control using your debit card. For some that is ok, for others it is not. For me I'm not in debt, I love the travel rewards I get, and it saves me hassle. If the rewards on this card go away I will just get a different card.

 

[Spring10]

These credit card company's are only hurting themselves longterm. I have always paid off my credit card every month, and they have made plenty of money off of my use of their cards. They charge the business a percentage everytime I used a credit card, especially American Express. I charged everything I could to get 1 to 3 percent back. It adds up.

So along with everyone else, due to the economy, my limits were reduced and the rates are going up. Now the perks of using their cards are going away.
You know what? I will never use those cards again, and when the economy recovers, they will have lost their core customers with their treatment. Unless I'm stranded on the side of the road on a dark night, I won't charge anything again. They won't get their paybacks from the merchants so one of their sources of revenue will dry up if enough people do the same as I will. I have a strong feeling they will, and then they will be left with the risker customers.

 

[Wenchy]

These credit card company's are only hurting themselves longterm. I have always paid off my credit card every month, and they have made plenty of money off of my use of their cards. They charge the business a percentage everytime I used a credit card, especially American Express. I charged everything I could to get 1 to 3 percent back. It adds up.

So along with everyone else, due to the economy, my limits were reduced and the rates are going up. Now the perks of using their cards are going away.
You know what? I will never use those cards again, and when the economy recovers, they will have lost their core customers with their treatment. Unless I'm stranded on the side of the road on a dark night, I won't charge anything again. They won't get their paybacks from the merchants so one of their sources of revenue will dry up if enough people do the same as I will. I have a strong feeling they will, and then they will be left with the risker customers.

I'm with a great company...USAA. I enjoy my cash back rewards and they enjoy their merchant fees. Annual fees or no grace period? I think this is one company who won't do that.

I still have open lines with other banks and I can see what is going to happen. I'll start opening my (junk) mail and as soon as an annual fee is mentioned the account will be closed.

I've never charged what I couldn't pay off, but I do like the convenience of not carrying cash.

 

[BET]

These credit card company's are only hurting themselves longterm. I have always paid off my credit card every month, and they have made plenty of money off of my use of their cards. They charge the business a percentage everytime I used a credit card, especially American Express. I charged everything I could to get 1 to 3 percent back. It adds up.

So along with everyone else, due to the economy, my limits were reduced and the rates are going up. Now the perks of using their cards are going away.
You know what? I will never use those cards again, and when the economy recovers, they will have lost their core customers with their treatment. Unless I'm stranded on the side of the road on a dark night, I won't charge anything again. They won't get their paybacks from the merchants so one of their sources of revenue will dry up if enough people do the same as I will. I have a strong feeling they will, and then they will be left with the risker customers.

Very good point! I use my credit card for most of my purchases and then pay it in full each month. My credit card company will loose my business as well if they start charging interest immediately or start charging an annual fee.