I recall seeing on TV the other day a gentleman who had received one of these pre-approved cards. Luckily, he was smart and read the fine print. A $300 credit limit, $75 annual fee, and (get this) 75%+ interest rate! This was printed nowhere on the letter, only on the separate fine print paper they send with it.
This is what's wrong.
And let's not forget their market partners, who send occasional thank-you gifts. Cash a check that appears to be a refund from your credit card company and you may find you just agreed to pay $x for the rest of your life to some company for a non-product that you may not even notice since it's buried in your bill under some unrecognizeable heading. [No, I've not fallen for this, but I'm furious that they'd attempt to deceive me in this way.] There's also the dreaded opt-out.
By not replying no to the correspondence that you did not receive from us, you have agree to.....
And the credit card insurance scams (my husband had one of those for years until the card actually was stolen and used and we discovered they covered NOTHING because you had to call THEIR number and report it, not the credit card company's number, and you had to call within X number of hours, try to reach a live person, etc.).
There are so many non-productive businesses tied to separating people from their money without providing a product in return...... SIGH! This is not capitalism. It's Ponzism.
I can understand the concern with a complete stranger, but if you're a long time customer or if you have a long credit history then why drive away a good or potentially good customer?
Depends on their definition of "good".
I got one of these letters from Citi, too. Their terms changes really do not affect me, as I do not carry a balance and will not be paying interest no matter what crazy rate they demand. This makes me, to them, a bad customer, not a good one...
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Use the Shift key, people! Keyboard manufacturers everywhere are ineffably saddened when you ignore what they made just for you!
I got one of these letters from Citi, too. Their terms changes really do not affect me, as I do not carry a balance and will not be paying interest no matter what crazy rate they demand. This makes me, to them, a bad customer, not a good one...
Not necessarily. The credit card companies make money from every purchase you make with the card because the vendor you purchase from pays a fee. And as long as you really do pay your bills on time and they never have to contact you, then they make money; their fixed costs remain the same, and their variable costs are negligible.
I have an AmEx card from Costco. I shop there regularly and spend a fairly large amount of money, but I pay my bill in full every month. AmEx just raised my credit limit without me even asking. They apparently recognize a valuable customer.
The only way you are not worthwhile as a customer is if you don't carry a balance and you rarely use the card, but even then it's not like you're costing them money; you're just not making them as big a profit as they would like.
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- Wisdom is the knowledge of how much you don't know.
Yes, to credit card companies the ideal customer (and the one that will build your credit the fastest) is one who carries a balance not exceeding 25% of their credit limit - preferably something like 15-20%. That's what I was told anyway...
Kind of counter-intuitive and asinine, but there you have it....
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"I may disagree with what you have to say, but I shall defend, to the death, your right to say it."
Yes, to credit card companies the ideal customer (and the one that will build your credit the fastest) is one who carries a balance not exceeding 25% of their credit limit - preferably something like 15-20%. That's what I was told anyway...
Kind of counter-intuitive and asinine, but there you have it....
I am sure there is some economic formula that shows people that spend only a small percentage over what they make, then they generate profit for th cc companies for a long time without going bankrupt or doing a massive buget overhaul and cutting up their credit cards.
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"There is a fine line between clever and stupid" David St. Hubbins
USAA is now open to all veterans
who have honorably served.
Financial services provider focused on military community expands potential customer base by an estimated 35 million.
More than 18 million U.S. military veterans and their 17 million eligible family members who are looking for competitive alternatives to their current insurance, banking and investment providers now can take advantage of USAA and its 87-year record of strength, stability and performance in service to the military community.
Citing steady growth in financial strength and operational capacity, USAA announced that effective immediately, membership is now open to all veterans of the U.S. Armed Forces who served honorably, regardless of years of service.
The change expands USAA's potential customer base by an estimated 35 million, including 18 million veterans, and 17 million spouses and children who also would be able to access USAA services after their veteran relative becomes a member.
USAA is now open to all veterans
who have honorably served.
Financial services provider focused on military community expands potential customer base by an estimated 35 million.
More than 18 million U.S. military veterans and their 17 million eligible family members who are looking for competitive alternatives to their current insurance, banking and investment providers now can take advantage of USAA and its 87-year record of strength, stability and performance in service to the military community.
Citing steady growth in financial strength and operational capacity, USAA announced that effective immediately, membership is now open to all veterans of the U.S. Armed Forces who served honorably, regardless of years of service.
The change expands USAA's potential customer base by an estimated 35 million, including 18 million veterans, and 17 million spouses and children who also would be able to access USAA services after their veteran relative becomes a member.
USAA is awesome and I recommend it to everyone, including liberals!
Thanks Bayou.
USAA is the best financial services association in the USA and possibly the world....most probably because it is member-owned and doesn't answer to stockholders. If you are eligible, you should join.
Last edited by MdA; 11-11-2009 at 03:06 PM..
Reason: member owned..stockholder
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