Anyone Ever Had Their Cards Closed...

[RSCo]

Anyone ever had their cards closed for paying in full each month?

[bettercreditguy1]

never. why would they want to close a positively reporting money machine?

[LS2982]

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@RSCo wrote:

Anyone ever had their cards closed for paying in full each month?

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That would be quite dumb of a creditor because they would lose my business forever and I'm sure others would be the same way.

[RSCo]

Well my thought was that they are in the business to make money and since they are not making any interest on their credit line, the only thing left would be merchant swipe fees each time we use the card...

[LS2982]

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@RSCo wrote:

Well my thought was that they are in the business to make money and since they are not making any interest on their credit line, the only thing left would be merchant swipe fees each time we use the card...

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Believe me they make a PRETTY penny off of those fees.....

[L0RDAVENTAD0R]

I too have wondered this. I remember a long time ago in middle school we were watching some info video thing about credit cards and some of the people were saying their credit accounts were closed because the credit card companies were never making any money off of them via interest.

[ryanbush]

The banks, especially discover and amex make a ton off the swipe fees.  A customer who pays in full is less of a default risk that someone who carries a balance.  I feel like they would rather you pay in full than revolve a balance.

[LS2982]

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@GMCSierraDenali wrote:

I too have wondered this. I remember a long time ago in middle school we were watching some info video thing about credit cards and some of the people were saying their credit accounts were closed because the credit card companies were never making any money off of them via interest.

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I find that hard to believe there were probabl other factors for their account closings but PIF isnt a valid reason.

[MovingForward_2012]

I think back in the early 2000''s, CCCs acted differently. Whenever I maxed out my cards back then and just made the min monthly payment, I would get a huge CLI. Then I would max that out and get another increase. Young and stupid me didn't realize that the higher the balance got, the higher my min monthly payment got, and I was in deep trouble before I could blink an eye. Maxing out your cards in this day and age, won't get you a CLI and companies like AMEX will do an audit and possibly take AA against you by either closing the account or giving you a CLD. So nowadays, lenders like when you PIF. Sometimes I will leave a small balances so they can make a couple of bucks in interest. Haha!