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Friday, January 25, 2013 - 2:17 PM
From Bankrate.com:

http://www.bankrate.com/finance/c...-cards.asp

I do not agree to put credit card rewards out of my mind.  There are smater ways to get the highest card reward but still do not pay a cent toward card interest, etc. 

Some rules:

Cash (or points that are readily converted to cash) is always better

Consider trade-offs (e.g., $ vs. effort and FICO hit)

Go deeper into research (there are hidden gems everywhere)

Visit related forums with experts for discussions and experience-sharing

0% offers without transaction fees are rare, but low-interest offer for life is still obtainable 

In sum, it is potentially a profitable area, but one needs to put in the time and effort to reap the benefits.

 
4
51hh51hh1,475 posts since
Jan 16, 2010
Rep Points: 6,424
1. Saturday, January 26, 2013 - 8:36 AM
51:  Do you really think most people are going to use credit cards now that they are tagging 4% fees to all purchases?  Are even the cash back cards going to be useful at this point?  I would not be surprised to see them stop the "cash back" cards when they see how many people who are going to quit or use credit cards less. 
1
paoli2paoli21,364 posts since
Aug 10, 2011
Rep Points: 5,972
2. Saturday, January 26, 2013 - 10:00 AM
Ditto^^^^. Now what I'd like to see is a increase in rewards points to offset the increased costs of using the card. Right now I'm in dreamland.
1
klinkklink98 posts since
Dec 8, 2012
Rep Points: 265
3. Saturday, January 26, 2013 - 10:55 AM
Folks I just got off the phone with the manager of my local Chase Bank and Krogers store.  They knew nothing about this fee.  The manager at Chase looked it up on the internet while on the phone and said that fee will probably only be imposed at your little "mom and pop" stores who don't want to have to have for accepting cards.  He assured me that is why the big stores like Krogers and Walmarts won't be imposing the 4% fee.  They don't want to lose customers and want people to charge.  He said the small stores or any who will impose a fee have to put up a sign to make you aware of the fee.  The fee is not coming from the credit card companies but from the particular store itself and he doesn't think it will be many.  That was a relief to me because it means I can continue to still use my credit card.
1
paoli2paoli21,364 posts since
Aug 10, 2011
Rep Points: 5,972
4. Saturday, January 26, 2013 - 12:00 PM
Paoli,

The credit card industry is simply too lucrative for banks even without 4% fee (I doubt that 4% fee will be imposed at all; if some should do simply hop to another no-fee card).  The consumers that routinely pay 18% interest with monthly balance fund this industry with no end in sight.  On top of it, there are all kinds of fees if one is not careful.  This card reward business will continue for a while due to these rich funding source.

On our side, we (the prudent/smart consumers) always pay monthly balance in full.  In a way, we are the least profitable group.  However, we can take advantage of the best reward programs: For example, American Express Blue Cash Preferred card 6% CB on G/G/D; Citi Thank You Preferred Card (5% for everything), Citi Forward Card (5% on restaurant, book stores, etc.), Fidelity 2% card, Chase/BofA 1/2/3 cards, etc.  If one is even smarter, one can earn a lot of CB by frequent "churning" (no explanation is in order).

Banks will still routinely push out CB deals to entice more customers.  In a way we (the prudent/smart ones) benefit from those who faithfully pay high balance interest since it is the same pot of money.

I have no doubt that we will continue earning ibg CB for the many years ahead:-)

BR,

51
3
51hh51hh1,475 posts since
Jan 16, 2010
Rep Points: 6,424
5. Sunday, January 27, 2013 - 3:28 PM
I learned something yesterday while on the phone with our bank manager at local Chase Bank.  He was explaining to me why he doesn't feel the credit card fee will be a problem to me unless I shop at smaller "Mom and Pop" stores.  During the conversation I mentioned that the reason I don't use his Chase Rewards Card which pays you a certain amount for using at certain stores is that my Mastercard for all these years has never tried to charge us an Annual Fee and I don't trust Chase to kee the fee free after a certain period once I get it.  He revealed to me that there is a law now which prohibits any bank or credit card company from charging a customer an annual fee once they sign up and it is for a no annual fee card.  He said it is against the law now so Chase would have to always keep my card without annual fee now unless the law is changed.

Has anyone on here heard about the once free always free annual fee for credit cards?  Thanks!
1
paoli2paoli21,364 posts since
Aug 10, 2011
Rep Points: 5,972
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