Got Perfect Credit? You Could Be Charged For It!

[LuxLiving]

Got Perfect Credit? You Could Be Charged For It! - wcbstv.com

[disneysteve]

Interestingly, I just read an article in Money magazine this morning where one credit card analyst said that he thinks folks who charge a lot and have top notch credit scores will start to be favored by the CC companies. Because the new rules will limit their income from fees, they will look more toward the merchant fees they collect on each purchase. A user who spends a ton each year on the card will earn the company more income than a casual user who doesn't spend much. This analyst thinks those good credit risk, high spenders will start getting more offers and rewards.

[kork13]

I don't see the fees sticking too well... Unless they're able to offer rewards that well-justify the annual fee, there's no way that I (or hopefully most other people) would be willing to stick to them. If/when my CC's start having fees (without rewards to make it worth it), I'm calling to complain and request a waiver, and if not, the card is doneski.

[disneysteve]

But kork, I'm not sure how old you are but keep in mind that no-fee cards are somewhat recent. An annual fee used to be pretty standard. That was before all the ridiculous fees they levy now. Take away the ridiculous fees and they will go back to the annual fees. They're going to make their money somewhere.

[kork13]

Originally Posted by disneysteve

But kork, I'm not sure how old you are but keep in mind that no-fee cards are somewhat recent. An annual fee used to be pretty standard. That was before all the ridiculous fees they levy now. Take away the ridiculous fees and they will go back to the annual fees. They're going to make their money somewhere.

I'm only 24, but I do understand what you're talking about.... I simply mean that it only makes sense (from our perspective, the consumer) to use credit cards so long as they're advantageous to us. I have no problem with an annual fee if there is some sort of benefit which validates the charge. I get a few hundred dollars in cash-back rewards every year, so I wouldn't mind paying a $75 annual fee for that. But if the fee is too high, or doesn't have benefits commensurate with the fee, then it only makes sense to do something else, be it a different credit card, a debit card, or cash.

Also, while it's true that the credit card industry went a long time without no-fee cards, now that they've been introduced, they will probably be a lucrative niche in the industry regardless of current or future conditions. People will want them, so the industry will provide them.

[disneysteve]

I agree to a point. A reasonable fee (and we can dicker about what's reasonable) is for the convenience of having a credit card. I don't want to have to carry around lots of cash or keep a larger balance in my checking account or go to the ATM regularly. I want to be able to swipe my card and go and pay up later. That alone is worth paying for IMO.

Currently I only pay a fee for one card and it pays me back far more than that fee, so I understand what you are saying. I just think we might see a trend toward a return of annual fees that don't necessarily provide any reward beyond having the card.

[billbrennannj]

I'm really just getting tired of taking the time to pay any credit card each month. I have paid off 3 of them so far and will continue to pay off the other 2. My bank card is good enough for me. I would rather put away the interest that I was paying on these cards to use if I need to.

[Alex_Adviser]

Originally Posted by billbrennannj

I'm really just getting tired of taking the time to pay any credit card each month. I have paid off 3 of them so far and will continue to pay off the other 2. My bank card is good enough for me. I would rather put away the interest that I was paying on these cards to use if I need to.

Hi,
Really they have become panic to the users. We should try not to take them in huge numbers, because more you use it more you fall in debt. Rather you can apply for payday loans for your small financial need and can pay your credit card debts easily.

[wincrasher]

Back in the day, getting that first card was quite the feat.

I got mine when I got my first job out of college. The company had to vouch for me. The fee was $45 a year. The maximum interest rate was 18% Credit limit was $500. I was so happy to get it.

Now, with 20+ years of credit history and a FICO around 800 - I've got cards with 34.99% rate and a 30,000 limit (thanks BOA!). But no annual fees!

Right now I'm really only using my Amex Blue Card. I'd probably fall into the category that Steve is talking about - charging $6-7k a month and paying it off each billing cycle. I've been raking up alot of rewards points this year and have paid no interest. But if they put a fee on me, I too will drop it.

[junosama]

So far i have been lucky enough not to need credit cards they seem like so much trouble and ive heard so many horror stories i just want to avoid them at all costs if possible.