Credit card - disgust

[Ed Rooney]

I use Amex for the most part, but they are no angels either. No, they won't rate-jack, because they don't charge interest, but they will probably be raising annual fees here soon. On platinum that is a good chunk of change. Also, if your credit appears to be suspect, they will know about it and try to get rid of you.

Amex card users still have to keep a Visa or MC in their wallet to take care of the places that don't take Amex. I use Citi and I am ready to change to USAA if they rate-jack me.

Paying the Visa/MC fees is a necessary evil, since you need a healthy chunk of available credit to keep your credit score up. Amex and other "no spending limit" cards actually hurt your score a tiny bit if you don't have some other high-limit cards to compensate. Amex shows up as no available credit, so the formula uses the historical high balance for the limit. So if the highest amount you ever charged on it in a month was $5000, and you regularly charge $4000, the formula takes it as 80% utilization. Bad. You need another traditional card or two with no balance to even it out.

None of this is a really big deal unless you are buying a house or something and want to make sure you get the very best rates.

[RedBaronF2001]

My rates have skyrocketed as well. I never carry a balance, but it's still disconcerting.

I use mine for business travel and day-to-day expenses, like others here, to get the points. I fear big time fees are upon us soon.

Like home loans, credit card companies have been loaning countless sums to folks who can never pay it back and now they're in trouble. We knew this was coming so it shouldn't be a surprise to anyone. How many stories of folks having 10, 20, 30, even 50,000 in credit card debt? Countless. This is driven up the prices of everything.

I, for one, am glad this is happening so that the folks who abused the system will wake up and learn their lesson. You eventually have to pay it back.

For the record I have no issue with folks who want to spread a large sum over a few months using a credit card. I have issue, however, with those who pay the minimum and keep spending. Now, we all have to pay for that.

[BarkMaster]

Originally Posted by HYDROMAROC

What do you do if something catastrophic happens?? Water heater blows, fridge dies, ETC ...????

The best buffer to avoid unsecured debt is to have an "emergency fund" of about 3-6 months salary.

Some lifestyles don't need to worry about that stuff (renters, for instance). Many people don't use credit... and don't need a good credit score. Some of the folks can rent their home and take public transportation if needed.

That would not work for my chosen standard of living, so I need a great credit history to gets the best rates on vehicles and mortages.

Since unrelated things are based on the credit score here (car insurance rates, employment, etc), it is also a good tool to use... correctly (always pay of monthly). To prove you are not a risk.

[JJ Irani]

Originally Posted by HYDROMAROC

What do you do if something catastrophic happens?? Water heater blows, fridge dies, ETC ...????

Never happened, but if it did, I'd call over the technician and hand him a cheque on completion of the job. How simple can that be?

I've lived my FULL 63 years WITHOUT a CC - never needed one, and I've still managed purchase of 24 Rolex watches, not to mention several others!!

[shandy]

Originally Posted by JJ Irani

That's why I hate credit cards.

I'm 63, never had or used a CC in my life and as happy as anyone can be!!

Same here JJ. I seemed to have survived very well without a credit card for over 11 years now, no debt either in that time.
Sure there have been some small inconvieniences but nothing compared with knowing I am not part of the debt machine anymore.

I might not have as many "toys" or what I thought Essentials as I did when I had debt and credit cards but to be honest I don't need them anymore as I am not depressed about my debt situation either!

I will be honest, I found the deeper in debt I got the more I would buy, it was a never ending circle. it is one as well that so many people say they are in control of.

It was so good all those years ago to pay it all off and never look back..Debt is the ultimate way of controlling us all

[Goodwatch]

Originally Posted by JJ Irani

That's why I hate credit cards.

I'm 63, never had or used a CC in my life and as happy as anyone can be!!

I guess you never rent a car or travel outside NZ? Nowadays it is impossible to rent a car or check into a hotel without a CC. We have a law in place that prohibits CC companies to charge more than 16%. And that's what they all seem to do.

[shandy]

Originally Posted by Goodwatch

I guess you never rent a car or travel outside NZ? Nowadays it is impossible to rent a car or check into a hotel without a CC. We have a law in place that prohibits CC companies to charge more than 16%. And that's what they all seem to do.

That's why I don't rent cars or stay in hotels (never enjoyed them anyway!) A small price to pay for the freedom of not owning one!

[Tools]

You guys haven't been paying attention....

rates and fees are going up because of the laws governing CC companies that were passed this year..

The government wants to regulate your credit next year, so the card companies are positioning themselves for the losses they will be forced to write off..

[2th Dr]

Originally Posted by Tools

You guys haven't been paying attention....

rates and fees are going up because of the laws governing CC companies that were passed this year..

The government wants to regulate your credit next year, so the card companies are positioning themselves for the losses they will be forced to write off..

That's what I was TRYING to say Larry. Thanks for clarifying! That's why I was saying, it won't do anyone any good to call them and complain.... it will fall on deaf ears.

[RedBaronF2001]

Originally Posted by 2th DR

That's what I was TRYING to say Larry. Thanks for clarifying! That's why I was saying, it won't do anyone any good to call them and complain.... it will fall on deaf ears.

I actually did call to get my APR reduced and they said no. They did say, however, that they were going to introduce some new measures for those with good credit.

[diversified]

Citibank just whacked me up to 23.99% today too! Glad I never never a balance.
Not bad for perfect creditAccessory Unit
What the hell are people paying with bad credit?

[JJ Irani]

Originally Posted by diversified

What the hell are people paying with bad credit?

Probably RADO watches!!

[Ed Rooney]

Originally Posted by diversified

Citibank just whacked me up to 23.99% today too! Glad I never never a balance.
Not bad for perfect creditAccessory Unit
What the hell are people paying with bad credit?

I just had a look at Citi. I am at 14.99% and 9.94% on my two cards, never carry a balance, with excellent all around credit. I am watching them. If they jack it up I will cancel. USAA has me at 7.74%.

[2th Dr]

Well here ya go... In today's Houston Chronicle...
http://www.chron.com/disp/story.mpl/...s/6711497.html

[TheDude]

Happened to me too. Going to cancel on principle and replace them with cards from my credit union. Only 12.something %.

[diversified]

I never thought about a credit union. Thats something I'm going to look into, first I got to cash in all the stinking Citi Reward Points I got sitting around.
Funny, I just did a credit report on myself 2 days ago and it looked like a AAA+ report card!, but I did notice that both Citibank and American Express did credit inquiries 2 weeks ago. I don't know if My American Express Corporate Card will be affected by the broad based hikes hitting everyone.

[Ed Rooney]

FUNNY.....I got home tonight and in the mail was the letter from Citi raising my rate to 18.99%

[2th Dr]

Originally Posted by Ed Rooney

I just had a look at Citi. I am at 14.99% and 9.94% on my two cards, never carry a balance, with excellent all around credit. I am watching them. If they jack it up I will cancel. USAA has me at 7.74%.

Originally Posted by Ed Rooney

FUNNY.....I got home tonight and in the mail was the letter from Citi raising my rate to 18.99%

I was just gonna say...

[TSW]

Originally Posted by rsg

american express

x2

[sea-dweller]

I just received the notice from Citibank also, rate is up to 23.99%...

[walds11]

I had some free time yesterday, so I decided to call Capital One to see if they can lower my rate that they jacked up (6.90% to 15.90%). I did this a month ago, but they shot me down. I spoke to a rep and they said that I am a good customer, etc and will transfer me to a senior account rep. Well, I spoke to the senior account rep and she shot me down. The reason was the same BS (economic factors, etc). I've had this card for about 9 years, so no reason to cancel it. And I pay my balances off each month, so the interest rate does not matter, but it was noce to have the low 6.9%.

[TheDude]

RE: AMEX

I put probably 90%+ on my Amex, but you need something else for the stubborn folks who won't take Amex.


For those interested in a credit union, even non-military folks can join Pentagon Federal Credit Union.

There is a method that allows you to join if you make a donation to the National Military Family Association. It helps the families of deployed troops.


Option 7:

https://www.penfed.org/howToJoin/overview.asp

[mikey]

I have learned many things about CC. I can honestly say I have not had a viable CC in 7-8 years. This is old news of the higher interest rates across the board of all major creditors. You can be penalized for paying your balance off every month too! JJ, Here your credit means everything and it will affect car loan, mortgage and determines whether you get a low or high interest rate most of the things mentioned above. I own my car. I pay $33 per month car insurance. I don't have a checkbook, and I pay my bills with money orders and mail them.