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Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: Cash + Holders, let's fight for our rewards!

[ Edited ]

FutureBillionaire wrote:

They overreacted.  Who cares if you can choose your categories if most of them suck?  Put on caps and an annual fee and keep the same categories.  I'm still happy.  They can absolutely do what the want. But, I think it is ridiculous to take their side when you consider that they:

 

1. Give us terrible interest rates on savings and other products

2. Charge us fees to hold our money

3.  Charge ridiculous rates for loan products.

 

Credit cards are the one area that the bank and the customer can win.  At least let us have that.


Certainly not taking "their" side.  The only side I'm on is "mine."

 

As to your points:

 

1.  Bank interest rates are determined indirectly by the discount rate fixed by the FOMC.  Low rates are reflective of macro enconomic conditions, rather than some sinister plot by financial institutions.  To wit, in the 80s during the Carter Administration, interest rates were 18% on consumer deposits.

 

2.  Don't do business with them; or, don't pay a fee you find disagreeable.  Find a "no" fee place to hold your money.

 

3.  Loan rates are determined by market supply, demand, and the cost of money (as stipulated in point # 1).  Don't like the rate, don't borrow (purchase) money.  Go purchase other things that offer you a better value.

 

No one should "let us" have anything.  Business and life isn't a zero-sum game.  What we decide to buy or not to buy is a decision made on an individual basis and not collectively.  

 

PS - You do what is best for you.  I do what is best for me.  And, US Bank will do what is best for them.  In the end, everything works out for the best! 

Established Contributor
FutureBillionaire
Posts: 650
Registered: ‎12-12-2012
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Re: Cash + Holders, let's fight for our rewards!

I'm aware of macroeconomics and interest rates . Are you aware that many of the folks that set the policies have worked in or have ties to the banking industry?  Let's not be naive in thinking that the rich aren't getting richer because they are setting all of the rules. I have the right as a consumer to get fair products just as much as they have a right to turn a profit.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:I have the right as a consumer to get fair products just as much as they have a right to turn a profit.

A "fair" product would be one where Banks offer a consumer to receive a 5% rebate on two categories of their choosing, used at their discretion and however they deem fitting up to at least $2,000 per month, eventhough no other issuer comes even close to offering anything similar?  And, moreover, they must offer this 5% eventhough though their discount rate is at a horistical low of near 0%?

 

 

Established Contributor
FutureBillionaire
Posts: 650
Registered: ‎12-12-2012
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Re: Cash + Holders, let's fight for our rewards!

[ Edited ]

You sound you like work for the bank.  Again I ask, what good are choosing from a bunch categories if I don't use them?

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

You sound you like work for the bank.  Again I ask, what good are choosing from a bunch categories if I don't use them?


It's not that useful in that case.  But you have to consider the competition.   There you can't choose, you are just given two or three categories, so, unless you feel that all the categories are worse than the categories offered by the other cards, it's not worse.

Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
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Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

You sound you like work for the bank.  Again I ask, what good are choosing from a bunch categories if I don't use them?


Pretend that you told me I can borrow money from you. You tell me that I can borrow however much I want, and only have to pay 95% back. You say you will charge 18% interest on me if I do not pay it back within a month. You reckon this is good because you will make some money off of me and I will not pay it off in a month. At first I borrow a few hundred dollars so you only lose a little bit. Then,  I borrow 10000 and pay it back before a month. You lose $500, so would you keep loaning me money at this unlimited amount? Or would you tell me you had to limit how much I could borrow?

Frequent Contributor
jake619
Posts: 496
Registered: ‎11-13-2012
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Re: Cash + Holders, let's fight for our rewards!


navigatethis12 wrote:

FutureBillionaire wrote:

You sound you like work for the bank.  Again I ask, what good are choosing from a bunch categories if I don't use them?


Pretend that you told me I can borrow money from you. You tell me that I can borrow however much I want, and only have to pay 95% back. You say you will charge 18% interest on me if I do not pay it back within a month. You reckon this is good because you will make some money off of me and I will not pay it off in a month. At first I borrow a few hundred dollars so you only lose a little bit. Then,  I borrow 10000 and pay it back before a month. You lose $500, so would you keep loaning me money at this unlimited amount? Or would you tell me you had to limit how much I could borrow?


Don't forget to factor swipe fees in the calculation.


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
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Re: Cash + Holders, let's fight for our rewards!


jake619 wrote:


Don't forget to factor swipe fees in the calculation.


Okay. Being generous, an automatic 2% interest charge is added every month, regardless if I pay it off or not. This equals $200, but still a $300 loss each month the behavior continues.

Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: Cash + Holders, let's fight for our rewards!


FutureBillionaire wrote:

You sound you like work for the bank.  Again I ask, what good are choosing from a bunch categories if I don't use them?


I don't work for or with US Bank, nor any Bank for that matter.  Nor do I have any bias for or against US Bank.  

 

If *you* don't use the categories, then the card isn't all that *good* for you.  You are free to do business with their competitors who may have "categories" and a "rewards" structure that is more commensurate with your needs and spending.  

 

You find what is right for you given what is offered in the market place.

 

By fair, are you suggesting a card *must* have a category that is useful for you?  If there is enought demand, then there will be a category that is useful for what you're seeking.  If there isn't--even if there is demand--then it means it isn't feasible for companies to offer that particular category in the amounts you (or, those who share your needs) deem valuable.

 

 

New Contributor
QuantumCredit
Posts: 64
Registered: ‎11-21-2012
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Re: Cash + Holders, let's fight for our rewards!

Guys, don't forget that categories are subject to change each quarter. If they deem this an overreaction there's a chance BillPay and/or Airlines will come back at some point. I think they nerfed too many things at once, including the ability to apply online, which will keep a lot of potential abusers out, so it's not out of the question that they'll bring some categories back after caps are instituted and they reevaluate their bottom line.


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