Credit Cards

[ilovepizza]

Credit card companies want us:

o  To run up high bills, but won't give up higher credit lines.

o  Pay our debts in full but try and tempt us with long term apr offers to carry debt.

o  Lower our credit lines when we carry long term debt. Did I say they want us to carry debt?

o  Chase down credit lines and cancel our cards if we use to much.

o  Charge us annual fees for not using the card enough.

[Wolf3]

The "sweet spot" for credit card companies is for their customers to carry a balance and pay interest every month ( maybe a few fees for their mistakes) , but not be in too much debt, so the risk of default it minimal.  They make a lot of money from this customer.  

Everything they do is aimed at getting their customers in this position. 

Message Edited by Wolf3 on 03-02-2010 01:26 PM

[MidnightVoice]

It is all South Dakota's fault 

[fused]

I don't think this new CC Act will change much. Banks will always find new ways to make billions and billions. After all, banks have found ways around the TILA (Truth In Lending Act) and continue to make billions.

[Jazzzy]

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MidnightVoice wrote:
It is all South Dakota's fault 

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I agree....and I live there.

Citibank started it all. One of our former governors gave them anything they asked for in order to get them here. Unlimited interest rates was one of those things.

And now, we've got First Premier, too. The owner of First Premier has now started to give away part of his fortune. He has funded our state's medical school, our largest healthcare system, etc. And they all have his name on them now. This is an article about him:

http://en.wikipedia.org/wiki/T._Denny_Sanford

Our state's doctors are getting educated with the dollars made from those with poor credit.

[marty56]

.Thats why CU and store cards rule.