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Old 11-11-2008, 08:14 PM   #21
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Originally Posted by Notmuchlonger View Post
Thanks to this board we are using the Pen Fed card. I have yet to see anything better. I wonder how they are making any money
What's the Pen Fed card?

I really couldn't say what my credit card companies have been doing. My credit limit was way more than I would ever spend in a month, and still is. I don't pay attention to the interest rate as I pay in full each month. I do pay attention to the cash back rate, and I can say they haven't raised that!
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Old 11-11-2008, 08:18 PM   #22
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No we didn't broadcast the change in income source to the credit card companies, I just figured big business knows everything about us. Glad to hear you haven't had any changes in your accounts!

Not sure they really want us to pay--don't they want us to pay just the minimum?
Oh, they'd like you to carry a balance and pay interest. But they're glad to just have you use the card and pay off every month if that's all they can get from you. Even when you pay off every month, you're valuable to them and they make some money from the transactions.
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Old 11-11-2008, 08:20 PM   #23
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Originally Posted by Dreamweaver View Post
What's the Pen Fed card?

I really couldn't say what my credit card companies have been doing. My credit limit was way more than I would ever spend in a month, and still is. I don't pay attention to the interest rate as I pay in full each month. I do pay attention to the cash back rate, and I can say they haven't raised that!
You get 5% back on gas. 2% on groceries and 1.25 % on any other purchase. I haven't found a card that does better. Not saying there isn't one.Everything we can charge we do it. Pay it off monthly. Like getting a discount on everything you purchase.

https://www.penfed.org/productsAndRa...s/overview.asp
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Old 11-11-2008, 08:24 PM   #24
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Without a doubt! Im guessing they would prefer to milk us on the monthly fees though
Well, of course. And car dealers would prefer you to buy silly, expensive options and finance the car. And grocery stores would like you to buy impulse items located at eye level on the shelves. And.......etc., etc. But if you don't, there're still glad to have you as a customer.

Even if you pay your cc every month, expect respectful, courteous treatment as a customer. They do want you.
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Old 11-12-2008, 09:55 AM   #25
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While we are above the 0 cards some of you have we only have 3 (not the 8 average hat was mentioned). We both cary the same Visa card that pays 5% on fuel and we each have a different Mastercard. My wife's MC pays 3% on fuel, and 2% on groceries, drugs and a few other things. My MC is nothing special other than we have had it for a long time. My MC is only used for internet purchases and automatic payments, this is done so we know what to cancel if there is a security problem, it also has a fairly low max (still 6-10X what we spend most month on it).

We have this card arrangement so if either of us loose a wallet we have one backup card that does not have to be canceled. My wife does most of the charging (accept for the net and fuel) so it makes sense for her to carry the money back card. The reason for splitting the companies is, once many years ago when I had one card, I tried to charge a plane ticket and when they called in to get an ok for the amount a computer was down and it was rejected. I had to go back the next day to get the ticket. Decided then, that I needed 2 different cards in case it happened again, never has. I had a large car rental bill once and they wanted to put it on two cards, I told them that one was all I had, and they took it.

Of the 3 cards one has a 5 figure max and I have actually jokingly offered it twice when a car salesman has asked how I wanted to pay, just to see his reaction. The other two are more inline with reality.

None have been reduces and the 5 figure one was recently increased gain, they seem to do that a couple of times per year. All are paid off every month so I don't even know what the interest rates are or if they have went up.

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Usury Laws
Old 11-12-2008, 10:25 AM   #26
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Usury Laws

I use my credit cards and lines of credit to keep them active and my credit score high. Use it or lose it, is the rule. I even let a balance ride once in a while to further pump up credit rating. Last time I bought a house I was over 800.

When Chase Master Card wrote me saying they were raising cash advance and over draft to about 32% annual fee I called them.

I said interest rate usury laws were suspended in the 1970's because of inflation, we are now in deflation, what gives? Usury laws still exist in some states.

He said, "You are not carrying a balance". I said, I am not calling for myself, I'm calling for all the poor smucks that are losing their jobs while you jackasses push them over the brink. "Didn't we just give you guys 250 Billion tax payer dollars. I'm calling as an owner.

I also called my senator and congress person to complain about this suspended usury law. I think it should be reinstated.

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Old 11-12-2008, 10:36 AM   #27
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I only have one credit card that is all I want. It is with a credit union because I trust them more than banks.
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Old 11-12-2008, 12:11 PM   #28
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Read someplace (don't remember where now (senior moment)) that Credit Card Companies consider people who pay off the balance and never incur any type of penalties are "DEADBEATS" in their eyes. Which, may or may not, explain why they are cutting limits and fiddling with the interest rates for us DEADBEATS.
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Old 11-12-2008, 01:07 PM   #29
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I also called my senator and congress person to complain about this suspended usury law. I think it should be reinstated.

boont
I do not understand this line of thought. Why should your congress person get involved in a private transaction? Should I call mine when I buy a car, TV or house to see if it is a good deal? How about beef versus chicken? If the interest rate is too high - don't borrow money from them. Period.

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.... Credit Card Companies consider people who pay off the balance and never incur any type of penalties are "DEADBEATS" in their eyes. ....
I keep hearing this, but my CC companies sure have an odd way of showing their disdain for this 'deadbeat'. They keep giving me money and rewards to use their cards this way. Why do they do that if they don't like me? They even sent me flowers last year (I would have preffered cash).

-ERD50
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Old 11-12-2008, 01:12 PM   #30
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I do not understand this line of thought. Why should your congress person get involved in a private transaction? Should I call mine when I buy a car, TV or house to see if it is a good deal? How about beef versus chicken? If the interest rate is too high - don't borrow money from them. Period.



I keep hearing this, but my CC companies sure have an odd way of showing their disdain for this 'deadbeat'. They keep giving me money and rewards to use their cards this way. Why do they do that if they don't like me? They even sent me flowers last year (I would have preffered cash).

-ERD50
I guess "it depends" on who you have. PENFED treats me just fine too with the 5/2/1.25% (Gas/Food/All others) monthly cash rebates too.
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Old 11-12-2008, 01:26 PM   #31
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I guess "it depends" on who you have. PENFED treats me just fine too with the 5/2/1.25% (Gas/Food/All others) monthly cash rebates too.
So it sounds like there is a relatively free market in credit cards. That's good. Sounds like people just need to think a little, rather than expecting the govt to take choices away from them. I should be able to determine what is better for me than some guy/gal over there in DC.

I should get a pen fed card. My others are AMEX and a Chase through Amazon. As another poster mentioned, a good idea for you and spouse to each have a separate card in case a wallet is stolen or missing.

-ERD50
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Old 11-12-2008, 01:40 PM   #32
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If your credit card limit is lowered, does that change your FICO score? I read somewhere that FICO score is partly determined by your available credit?

tmm
Yes. Part of the FICO score has to do with the % of available credit you're using...so a lowering of the limit would put you at a higher percentage...that is unless you NEVER charge anything.

I charge almost everything I buy...and then pay it off in full each month. My bill is therefore quite high, but that's ok with me. I still only use about a third of the rediculously high limit they give me.
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Old 11-12-2008, 01:46 PM   #33
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Read someplace (don't remember where now (senior moment)) that Credit Card Companies consider people who pay off the balance and never incur any type of penalties are "DEADBEATS" in their eyes. Which, may or may not, explain why they are cutting limits and fiddling with the interest rates for us DEADBEATS.
This is true, they don't like us. But in effect we are still paying for the card...as businesses must build the cost of their payments to the CC companies into their overhead, and thus their prices. In other words, if we went to an all cash system tomorrow, in theory prices could drop about 2-3%.

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Last time I bought a house I was over 800.

boont
Lenders love people like you. My FICO is 806, and my wife checked hers and laughed at me because hers is 807. I knew there was a reason I liked her when we first met at age 30.

I bought a car a few years ago and they offered a zero % loan for 2 years, so I took it. They needed to run a credit check. The guy says to me "If I can't get you this loan, then I need to find another line of work".
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Old 11-12-2008, 02:47 PM   #34
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"I do not understand this line of thought. Why should your congress person get involved in a private transaction?" ERD 50

You act like we never had usury laws. Well, they go back at least 2000 years.

Why should congress get involved? Because they write the laws. This is corporate theft. The banks purposefully set up credit rules to profit on the high probability of an error by the customer.

Is it possible to read all the fine print (which keeps changing) to keep track of all the rules you must follow to not breach a penalty and be forced into a new higher interest rate on your account? No. The banks count on that, increasing penalties to add to their profit.

Now that they have taken public money they are subject to public pressure and new rules. It is no longer just "a private transaction", we are way beyond that.
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Old 11-12-2008, 03:06 PM   #35
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We opened a new cc account (first time in about 15 years) for the purpose of the 0% rate for one year for refinishing floors in FIL's house. The bank is of course hoping we don't have the full balance (which we do) at the end of the year and then we'd have to pay the 24.99% interest rate retroactive to the date of purchase.

They're going to lose on that bet. The money is currently earning interest for us and if they want to give us a free loan so be it. I suppose there are enough suckers out there to make the bet worthwhile or they wouldn't do it.
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Old 11-12-2008, 04:20 PM   #36
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In the days of easy credit having several card with high limits was nice. Take advantage of the zero percent balance transfer offers, stick the money in the money market, pay the minimum on the zero percent and use the other card for normal expense. Rinse and repeat for different cards.

Now days it doesn't matter much, since my credit utilization is never 10%, but still I am annoyed when companies cancel cards just because I haven't used them.
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Old 11-12-2008, 04:26 PM   #37
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Just got back from Home Depot (best experience ever--older easy going salesman confirmed our decision to buy the cheapest gas dryer, free shipping, dh got 10 percent veterans discount (thanks to this board and OAG's thread about it yesterday , salesman automatically checked "no" for extended warranty, etc.). Once all our purchasing info was input, good to know we are also preapproved for their $10K card (nice salesman handed us the paperwork and said we could do what we wanted with it even though we saw the HD computer screen that advised him to urge us to accept it).
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Old 11-12-2008, 04:50 PM   #38
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No drops in limits though have seen the raise in interest rates. I was very annoyed by that more for other people than myself. Haven't used the card since. Once the mortgage is in place, I am pretty sure I will call and cancel.

In fact one of my cards just raised my credit limit and another two offered me lower interest rates. I am also one of those terrible people who will sign up for a store card for the 20% discount so I have more than just 3 cards. My score was 747 for the mortgage so I will live, especially since the bank's best rate was reserved for 720+.
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Old 11-12-2008, 04:56 PM   #39
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Quote:
"I do not understand this line of thought. Why should your congress person get involved in a private transaction?" ERD 50
You act like we never had usury laws. Well, they go back at least 2000 years.
I don't care. We had lots of laws in the past that we don't have today. And it is progress.

Quote:
Why should congress get involved? Because they write the laws. This is corporate theft.
I don't consider signing a contract 'theft'.

Quote:
The banks purposefully set up credit rules to profit on the high probability of an error by the customer.

Is it possible to read all the fine print (which keeps changing) to keep track of all the rules you must follow to not breach a penalty and be forced into a new higher interest rate on your account? No. The banks count on that, increasing penalties to add to their profit.
You have a point there, I tend to agree. Two solutions:

1) If we are to have govt regs, focus them on standardizing the language. Create a "plain English" document to explain the terms.

2) Largely because of all that fine print - I recc people avoid CC debt like the plague. Problem solved.

I've never had a fine print problem. I pay my bill on time and fully, and they keep throwing money at me.

Quote:
Now that they have taken public money they are subject to public pressure and new rules. It is no longer just "a private transaction", we are way beyond that.
b.
Fine, so do #1 above. I still don't see the point of regulating what someone will pay for something. You did not respond to my question:

Should I call mine (congress person) when I buy a car, TV or house to see if it is a good deal? How about beef versus chicken? If the interest rate is too high - don't borrow money from them. Period.

What makes a loan any different from anything else I might buy?

-ERD50
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Old 11-12-2008, 05:00 PM   #40
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Two accounts have raised our limits and still sending low interest balance xfer offers, but the transfer fees are 3% or so....ridiculous. We carry balances on several cards but the max is 4.99% and we also use the Penfed card which sometimes has no fee balance xfer promotions.....last one was 2.99%

I am not sure but suspect FICO scores are reduced by piling debt onto the lowest rate cards even though overall utilization is not affected.
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