@longtimelurker wrote:
@Anonymous wrote:Happypill says, “I think the business decision for them is that they're not likely to make any money off someone who carries no balances.” I don’t agree. Sure they make more money on those balance carrying interest charges, but credit card companies definitely make money in other ways that involve transactions.
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Not sure if that is what Happypill meant (maybe) but my take since this is in the context of zero or small balances REPORTING on non-CAP One cards, the person may not be a heavy user of credit cards anyway (since most people don't pay until after the statement cuts) so even if traffic switched to Cap One card, not much profit from transaction fees.
Yeah, you guys are both right. I have some other cards I use heavily and no doubt those companies are happy with the swipe fees; however I often pay before balances post so other companies may not see all the usage. From Capital One's perspective, I'm not using their cards and they may not be able to see my other spend. The risk of a $30k limit probably isn't worth the minimal upside.
What I wonder about actually is after CLD if they'd approve me for another card down the road. They don't have any cards in their portfolio currently I'm interested in using, but I'd be happy to continue collecting nice sign-on bonuses.
