Comments on: Watch Out for New Credit Card Fees

By: SMEE

SMEE — Wed, 17 Feb 2010 15:34:26 +0000

RE: credit card fees. I carry two cards I am willing to pay fees on and a bunch of others I never use. These I never asked for and now I have to opt out or pay the stinking fees. At my age I am opting out even though it will affect my FICO That doesn’t matter to me now. One one of these cards I did charge a lot cause interest was lower than my CD. Too bad for those who need those cards now. I always pay my balance off in full. So those who can’t pay plus additional fees are going to start a new crisis in finance.

By: SMEE

SMEE — Wed, 17 Feb 2010 15:14:31 +0000

I am older and I can use the internet just fine, but I still like hard copy because when your PC crashes and you have not printed out whatever like bank statements your up the creek without a paddle. Banks will only let your go back a few statements per year. It is not nice to not have receipts for tax time.

By: Rich

Rich — Sun, 31 Jan 2010 21:38:20 +0000

I think at the end of the day, the banks are going to find a way to squeeze every last dollar they can from their customers. I have credit cards and probably always will. The secret is to never NEED them. They are a convenience and the day that convenience becomes too costly is the day I put them through the shredder!

By: NateUVM

NateUVM — Fri, 08 Jan 2010 15:07:20 +0000

Yeah, but this is part of the process of “progress.” As the internet gets even more intergrated into everyone’s daily lives, and paperless delivery becomes more-and-more the norm, older technology (Regular Mail) isn’t going to be as well supported. Instead of being a normal business expense, these companies are going to see it as an expense that they’ve eliminated on their side to increase efficiency. So, now that expense, if incurred, is going to pass the consumer (in a way, it always has been). To receive the older-type service is simply going to cost more.

It’s the same story as with any out-of-date technology, etc… It’s unfortunate for those that aren’t willing/able to embrace the “future.” But I think that’s just the way it is and the natural progression of society, etc…

By: NateUVM

NateUVM — Fri, 08 Jan 2010 14:59:38 +0000

I did something similar. However, the card I want to keep active is relatively inactive for a reason… I get better rewards elsewhere. So, I do an autopay for most of the bill off my card with the better rewards and leave about $10 to manually pay with my oldest, more dormant account.

Am I trying too hard to earn more points on my other account? Will I have to rachet up how much I pay on my older card if credit card co’s have to place minimum usage thresholds to avoid fees? Maybe yes to all of that… But, so far, it works well for me.

By: Chris

Chris — Fri, 08 Jan 2010 05:06:52 +0000

Maybe its time to change CC companies.

By: Chris

Chris — Fri, 08 Jan 2010 05:06:00 +0000

I made a similar move one one of mine just to keep it active. I don’t want to lose the line.

By: zapeta

zapeta — Fri, 08 Jan 2010 02:43:33 +0000

I agree! My parents don’t know how to view their bill online and they don’t usually pick up much when I give them computer lessons. Its pretty ridiculous to have to pay to get a bill! You’d think they’d want to send you a bill so you can pay them!

By: eric

eric — Fri, 08 Jan 2010 01:38:05 +0000

I’ve definitely seen more annual fee cards. What irks me the most is the extra charge for paper delivery. It’s fine for me because I love doing everything online but for people like my parents, who’ve grown used to paper statements for decades and aren’t familiar with online banking, this completely sucks.

By: Chris

Chris — Thu, 07 Jan 2010 18:09:55 +0000

This often happens when the market squeezes for lower rates and the surplus of institutions compete harder and harder for funds to loan.

By: NateUVM

NateUVM — Wed, 06 Jan 2010 15:34:05 +0000

You are getting a service from the credit card company. You have the ability to take out a 30-day (or longer) loan. In the case of “no annual fee,” as long as you pay it off each month, you get that service for free.

In a perfect world, where everyone pays off their credit card bill…is this sustainable?

Or, is it a system that RELIES on people to carry a balance, make late payments, etc…?

To me, that system is flawed. I’d rather pay a little for the service I receive than to live with the knowledge that the benefits I enjoy are breaking the financial backs of my neighbors.

I’d rather that the financial products we use were priced correctly. Fairness and transparency are what is going to improve our economy in the long run. Not the targeted lining of some people’s pockets.

By: NateUVM

NateUVM — Wed, 06 Jan 2010 15:22:19 +0000

The primary function of banks is to serve as a financial intermediary between those that have “extra” money and those that need more money. In most simple form, the profit that they earn should come primarily from the difference in the rates they charge those that they lend money to (those that take out loans) and the rates that they offer those that they borrow money from (depositors).

There has lately (last 15 years, or so) been a shift in the source of revenue for banks, though. By advertiseing a low-cost product, they are then able to re-coup some of that revenue by charging fees on the back-end. Those of us that are responsible end up getting a great deal. Those that aren’t…well, they end up paying a LOT more than what they may have thought they had to.

This isn’t to say that this setup isn’t fair, there is ALWAYS the fine print to consult… But this paradigm is a deliberate attempt to attract as much business as possible without any thought to what happens to the consumers it traps.

Now that there will be more regulation, banks will no longer be able to charge fees on the back-end and will have to price their products more appropriately. Will those that “behave” lose out on great deals? Yes. But products and their pricing will be more transparent. There will be more truth in the advertising.

If there are banks that fail because they can no longer afford to participate in a market where they can’t rely on massive fee revenue and instead have to act primarily as the financial intermediaries that they are supposed to be…. I’m all for it.

By: Soccer9040

Soccer9040 — Wed, 06 Jan 2010 13:44:52 +0000

I moved my cell phone auto pay over to one of my inactive cards just to keep some activity on it. I’ll see what chase does in the future with it.

By: Johnny

Johnny — Wed, 06 Jan 2010 07:36:14 +0000

Visa and Amex?? They are transaction-processing companies. Is it not the banks that do the lending on credit?

By: javi

javi — Wed, 06 Jan 2010 04:37:56 +0000

I am glad that none of my cards have instituted new fees, but I will keep an eye on that. I would rather take my business to another company, than pay excessive fees.