Anybody else pay off their free credit cards monthly and get cash back?

[markw]

I do. Well, that's gonna change. They're gonna rob Peter to pay for Paul.

"Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups."

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&hp

Gee, thanks Obama.

 

[mtrycrafts]

I do. Well, that's gonna change. They're gonna rob Peter to pay for Paul.

"Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups."

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&hp

Gee, thanks Obama.

Be ready to shop around for the best deals as there will be competition

 

[jamie2112]

I do not..........

 

[vizionut]

I am working on paying off all my credit cards and only use my debt card and cash for everything.

 

[MUDSHARK]

Yes, I do. I have three. discover for cash back, Chase Visa fixed low interest, and a mastercard that I use to isolate business purchases. If fees are charged I will likely cut one or two out since I almost never carry a balance.

It appears that those of us using credit prudently will be subsidizing the banks lack of judgement in their past credit policies.

 

[jinjuku]

I do. Well, that's gonna change. They're gonna rob Peter to pay for Paul.

"Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups."

http://www.nytimes.com/2009/05/19/business/19credit.html?_r=2&hp

Gee, thanks Obama.

I for one am glad Obama did what he did. I am one of those guys that pay off my balance in full every month. I am the worst type of customer.

I am also one of their best types. I generate a lot of exchange fees for them with the amount of processing that I do on my card. They are not going to want that business to go away.

The banks will still be competitive. This is a knee jerk reaction.

 

[adwilk]

I honestly dont have a problem with it. If you have the money to just "pay" for something, then just pay for it. Why should you get something for nothing? Why shouldnt you be charged a little interest if you're using somebody elses money? Thats the basis for credit. If you dont want to pay interest, just pay for it.


Creating a new profit center in that way will also allow those banks to cut back on fees and interest for the average guy making it easier to avoid major debt. It will also allow the banks to be more selective when extending lines of credit...

Even if only temporary, its not a horrible thing for the big picture...

 

[jinjuku]

I honestly dont have a problem with it. If you have the money to just "pay" for something, then just pay for it. Why should you get something for nothing? Why shouldnt you be charged a little interest if you're using somebody elses money? Thats the basis for credit. If you dont want to pay interest, just pay for it.


Creating a new profit center in that way will also allow those banks to cut back on fees and interest for the average guy making it easier to avoid major debt. It will also allow the banks to be more selective when extending lines of credit...

All I know is I didn't contact Chase for my Amazon Visa card. I didn't propose a 25 day grace period, I didn't propose a 6.99% APR. They solicited me. I am just playing by the current rules. If Chase changes the rules going forward, that's fine. If I don't like the changes I simply won't use the card.

What I have a problem with is:

Changing the agreement retroactively, Changing my contract because of something else going on externally (like getting a mortgage and therefore impacting my credit score).

I pay it off in full every single month. I have had the account for 6-7 years now. They have never made a dime off of me in any extra fees. What I DO for them however is purchase A LOT. This means ~$0.15-20 Per Diem rate plus ~1.7% exchange rate per swipe (non swiped transactions are ~2.5%). This is on the backs of the merchants that accept Visa/MC/Discover/Amex.

They have enticed me to use the card with all these great benefits. I have. Take that away? They will see customers like me go away. When they start missing the fact that I do north of $80K year on my card... Well only the future will tell.

I think that most of this is a scare tactic by banking. President Obama has shown big bank lobby the door and they are going into full 'Obama is making the sky fall' mode. It will be interesting to see how much they spend on his opponent in the next presidential election. About time someone was on the citizens side in all of this. The credit card issuers can all go to hell.

 

[adwilk]

What I have a problem with is:

Changing the agreement retroactively,

I'll buy that... I dont spend what you spend a year on plastic, but I use mine often and pay it off monthly... I get that it does affect us and in some ways its a "bummer" but the best interest of the whole outweigh the best interest of the few. I dont think it will last, but it might temporarily alleviate some cash flow issues in the banking world. Desperate times....

 

[jinjuku]

I'll buy that... I dont spend what you spend a year on plastic, but I use mine often and pay it off monthly... I get that it does affect us and in some ways its a "bummer" but the best interest of the whole outweigh the best interest of the few. I dont think it will last, but it might temporarily alleviate some cash flow issues in the banking world. Desperate times....

If I recall correctly, it is desperate times of their own making. You make your bed and then you sleep in it.

 

[adwilk]

If I recall correctly, it is desperate times of their own making. You make your bed and then you sleep in it.

I'm certainly not arguing that... Unfortunately, we get to spend some time in the bed with them... Whatever ultimately makes the situation better...

 

[Alamar]

I'm what some CC folks call a deadbeat ... I also pay off my full balance monthly To be honest I pay for everything that I can with my CC simply because it makes purchase tracking, budgeting, etc. SOOO easy that it would be silly not to use it. Chargeback and other rights are also a comfort on the rare occassions that I need it ....

On the other hand if I get hit with interest payments / large monthly fees / etc. for the privilidge of using a card and paying the balance in full monthly I'll just have to do something else.

 

[gmichael]

I for one am glad Obama did what he did. I am one of those guys that pay off my balance in full every month. I am the worst type of customer.

I am also one of their best types. I generate a lot of exchange fees for them with the amount of processing that I do on my card. They are not going to want that business to go away.

The banks will still be competitive. This is a knee jerk reaction.

You (and I) will be the ones it affects the most. They will go back to having anual fees and will charge interest immediately. Even if you pay your bills as soon as you get them. The interest starts building up the day you make your purchase. It will already be added on to that first invoice.

 

[gmichael]

I'm what some CC folks call a deadbeat ... I also pay off my full balance monthly To be honest I pay for everything that I can with my CC simply because it makes purchase tracking, budgeting, etc. SOOO easy that it would be silly not to use it. Chargeback and other rights are also a comfort on the rare occassions that I need it ....

On the other hand if I get hit with interest payments / large monthly fees / etc. for the privilidge of using a card and paying the balance in full monthly I'll just have to do something else.

+1

We use our cards for the convenience of easy budgeting. They are making their 1.7 to 2.5% on all my purchases. If they try to charge me extra, they'll find themselves making nothing from me.

 

[aberkowitz]

I voluntarily opt into annual fees by using American Express cards over the years. For me, however, the benefits I get from their cards and their Membership Rewards program are definitely worth the annual cost. I never let balances float, pretty much using my credit card like a debit card. I spend enough money that over the years I've gotten at least 5-6 free vacations out of the rewards program. For that alone its worth the annual fee that I pay.

 

[Nemo128]

I put everything, including my $2.99 gallon of milk at Quick Chek every 3 days, on my Chase Freedom for rebates, and I pay my balance in full every month on every card I use.

For every one person like me, there are dozens who pay minimums until they default or file for BK. Blaming the responsible people who handle their finances without debt and the new president, yeah, good one... *sigh*

Oh, and F Amex, I've had a Blue for only 2 months and I hate them already, but it's the only CC Costco accepts. F Costco too!

 

[lsiberian]

LMAO. You guys are all so well behaved.

I got cards with the idea of doing like you folks, but instead I've got debt with crazy interest.

 

[aberkowitz]

Oh, and F Amex, I've had a Blue for only 2 months and I hate them already, but it's the only CC Costco accepts. F Costco too!

Amex is great if you're willing to pay for their high end cards- the rewards are better than any other card out there. The problem is that you have to be willing to pay the fees.

 

[gmichael]

Amex is great if you're willing to pay for their high end cards- the rewards are better than any other card out there. The problem is that you have to be willing to pay the fees.

If you use it enough, it can work out better. Even with the fees. But I don't fall into that catagory.