CC Fees on those who PIF each month?

[Seeker]

Latest bank fee is for paying off credit card on time every month - USATODAY.com

[disneysteve]

I think annual fees are going to make a big comeback all around. My Marriott Rewards card has always had an annual fee but the rewards way more than make up for it so I've never cared.

[TheColonel]

Originally Posted by disneysteve

I think annual fees are going to make a big comeback all around. My Marriott Rewards card has always had an annual fee but the rewards way more than make up for it so I've never cared.

I feel the same way about my Starwood American Express.

[Seeker]

Yeah, I suppose so, but my concern is that these annual fee rates may sneak up on those of us who have several different cards that we do not normally really use.

I know that technically they are supposed to mail us and inform us of any policy changes, but while recently I've been checking closely any mailings from credit card companies, I'm not sure that I catch everything they are changing in their new "policy statement" -- in other words, they just sort of mix in the new stuff with the old, so I'm never really sure what exactly has changed.

I don't know.... maybe I should just cancel all the CCs we don't use. Or just keep one for MC, one for Visa, and one for Discover?

The only real rewards we use is cashback and Discover is our major usage card, but not everyone accepts Discover.

I guess we all really need to be watching and keeping up with these trends.

[disneysteve]

Originally Posted by Seeker

Yeah, I suppose so, but my concern is that these annual fee rates may sneak up on those of us who have several different cards that we do not normally really use.

That's a reasonable concern, but if you have a card that you don't use, you won't miss a new annual fee because you'll get a bill. That's how I caught a fraudulent charge on one card a while back. I got a bill on a card I hadn't used in ages.

[Like2Plan]

I think this is a good time to evaluate the merits of each CC to see if it is worth keeping.

[Snodog]

I will pay a small annual fee to use my credit card if I have to. The benifits I get are worth a reasonable fee.

That being said I hope my credit card company isn't reading this.

[disneysteve]

Originally Posted by Snodog

I will pay a small annual fee to use my credit card if I have to. The benifits I get are worth a reasonable fee. That being said I hope my credit card company isn't reading this.

Annual fees were commonplace for years. It is really only the past 10 years or so that no-fee cards became the norm. The pendulum is just swinging back the other way.

[MonkeyMama]

I'm with Snodog.

Can we chalk this up to one more reason not to keep every card you have ever had, for your credit score??? The financial gurus act like I have the plague when I mention that I always close an old card when I open a new one. What do I know - my FICO is 800-ish. (I've seen people with 10-20 open cards, in fear of the FICO).

I opened a credit union card this year in the hopes of avoiding future fees. They will at least be less likely to add a fee. Though I am quite sure my first CU Visa had an annual fee. I'm young, but I remember the times before the abundance of 0% and no annual fees. I got my first Visa about 16 years ago.

[disneysteve]

Originally Posted by MonkeyMama

I'm with Snodog.

Can we chalk this up to one more reason not to keep every card you have ever had, for your credit score???

I think everyone here routinely advises people to cancel CCs with annual fees, so I don't think this will change that advice, just enforce it. There is no reason to pay a fee for a card that you aren't even using, no matter what it does to your credit score.

[MonkeyMama]

Yes, but if you have 10 cards and you have to close 8 next year because of fees, that is NOT good for your FICO.

It makes far more sense to close cards you aren't using in the first place.

[feh]

We have a single CC (Visa) which we pay off each month. There is no annual fee. They make quite a bit from transaction fees, as we use our card a lot.

If they were to start charging an annual fee, I would likely start looking for another card.

[southerndoc]

I primarily use my Schwab Invest First Visa because I get 2% cash back on all transactions, no FOREX fees, etc. I pay it in full every month. The card is issued by FIA, which is the same company Bank of America uses. (Actually I think FIA might be a subsidiary of BoA?)

I opened an investment account with Schwab when I opened the card. Their customer service was so well that I ended up moving all my investment, retirement, checking, and savings accounts to them.

Let me make this clear: If FIA starts charging an annual fee -- even if it's $10/year -- I will not only cancel the card, but will move all my account elsewhere.

I'm quite sure I'm not the only one who feels this way. Banks had better tread lightly with the fees. They already make money off each transaction. Don't be greedy or you'll lose customers, or who knows, many customers may go back to cash transactions (which retailers would love).

[Joan.of.the.Arch]

I'll have to wait and see what I will do. At this point in my life I don't often have need for credit or a good FICO score. I'll evaluate as any changes come along. I rarely even used a CC until they started offering cash rewards. I can go back to paying cash. No biggie.

[disneysteve]

I don't mind the $65 fee on my Marriott card at all. Every year on my account anniversary, they give me a free night certificate. That's worth up to about $300, so that $65 fee is a great deal in my mind.

[happygirl]

Originally Posted by Seeker

Yeah, I suppose so, but my concern is that these annual fee rates may sneak up on those of us who have several different cards that we do not normally really use.

I know that technically they are supposed to mail us and inform us of any policy changes, but while recently I've been checking closely any mailings from credit card companies, I'm not sure that I catch everything they are changing in their new "policy statement" -- in other words, they just sort of mix in the new stuff with the old, so I'm never really sure what exactly has changed.

I don't know.... maybe I should just cancel all the CCs we don't use. Or just keep one for MC, one for Visa, and one for Discover?

The only real rewards we use is cashback and Discover is our major usage card, but not everyone accepts Discover.

I guess we all really need to be watching and keeping up with these trends.

I don't mean to sound naive, but why would you have more than just one CC anyway? Maybe 2 if you're married so you can each carry one, but why more?

[disneysteve]

Originally Posted by happygirl

I don't mean to sound naive, but why would you have more than just one CC anyway? Maybe 2 if you're married so you can each carry one, but why more?

Different cards have different benefits. Discover gives cashback and each quarter has different 5% bonus categories which is the only time I use that card. For years and years, I had an AOL Visa card that earned credit toward my AOL bill. I didn't pay a penny for internet access for about 8 years thanks to that card. My Marriott card, of course, earns points toward hotel stays and we've been averaging a free vacation every other year. Last year, we got 10 free nights in New Hampshire thanks to that card.

[snafu]

While credit granters are evaluating the addition of new fees, consumers could be evaluating which financial institutions offer what is needed and used. FICO is just an evaluation company used by credit granters. Those scores are only valuable if you plan a major loan or mortgage or drastic financial change and their data can be challenged!

We use several CC from different institutions if we wish to extend the free credit period by timing a purchase according to cut offs for billing dates. Alternatively, I ask if the seller will discount his asking price for cash since they pay up to 4% per transaction to CC companies.

Frankly, having read about bankers and their shenanigans over the past few years, the less I use their services, the better I feel. I wouldn't use loan sharks either. Upping interest rates on old CC balances is trapping people in a debt quagmire like Payday Loans or movie versions of 'Mafia.'

[wincrasher]

I'll happily cut up any cards that start to charge a fee. They are making plenty off the merchant fees that we all end up paying in our purchases.

You may take a very minor hit by closing a few accounts. The ratio is what you should concern yourself with the most. You can have an 800 FICO with just a single card, or in fact, none.

[Like2Plan]

Originally Posted by happygirl

I don't mean to sound naive, but why would you have more than just one CC anyway? Maybe 2 if you're married so you can each carry one, but why more?

I'm like Disneysteve. I have some reward cards that I feel are worthwhile. We have an airline credit card because it counts towards free airline travel. I also picked up one of those Marriott cards --hearing DS talk about the benefits, I decided to give it a try. Sometimes, we have maximized the benefit of the airline card, so it is good to get free lodging, too.
I have a Disney Visa--it doesn't have a fee. I would most likely drop it if they did start charging a fee. I use the Disney Visa for discounts and Disney promotions that are offered from time to time and for which you qualify by just showing the card.
I have AMEX for Costco, but we rarely use it.

The other reason we carry more than one is we charge everything we can on the card to maximize points. DH and I travel a lot and we have had instances where fraud "protection" has frozen our account, so we carry a backup. One memorable instance was getting out of the parking garage at our home airport late at night--we couldn't get out of the garage using our preferred CC! Finally, we pulled out a different CC and it worked! (We had to call the fraud dept after we returned home to get it unfrozen) Another time we were at a very fancy resort (The Greenbrier) taking a tour. The fraud protection kicked in when we tried to buy a latte for goodness sake! (Maybe the card knew we weren't the sort of persons who could afford to stay there? )