Do CC Companies Get Tired of Good Consumers?

[Anonymous]

---

@austinguy907 wrote:

---

@Anonymous wrote:

Who knows? I kinda try not to overthink. Move on if im not happy. Slow and steady wins the race. Diversify. 

---

LMAO!

It's been such a heated debate on whether it exists or not.... frankly I don't see the debate if it's still fact but under a different name / guise.  Even if they don't call it UD anymore they still react the same way when they spot things on your SP that are cause for concern.  It seems so many around here are forgetting the old days when banks were transparently evil and classified people accordingly for life.  Just take a look at some of the horror stories about being stuck at 29% for the life of a card when something triggers that penalty.  Just because it's not talked about much anymore doesn't mean it's not there.  Yes, the sky is blue, the sun is red, and fish breathe under water. Oh, and the earth is not flat

---

Ok? Not entirely sure what you are insinuating here....but.... for example, a credit union....generally known for being better for consumers and doing what is right.... ends up sending out massive flyers that say congrats, enjoy your huge credit increase, have a fun summer!  I mean, its a fixed rate card. So yeah.  Who is doing the "right thing" here? Horror stories or not, my world is not going to end if credit cards become obsolete.  Sure it would suck, but there are plenty of other ways to monetize, save money, passive income, etc..

What are you saying exists? A potential risk?  Yes of course.  Theres always risk. I am just saying to live resonsibly and not overthink things. I mean you are right, there are cases of that, I personally know of a woman who came into an inheritance, and paid off almost all of her CC debt, and was instantly balance chased with scores in the 800s.....I don't know.  I think we have worse things to worry about. (Mod Cut-Please lets leave this discussion to another board, thanks for your understanding)

[longtimelurker]

---

@Anonymous wrote:

---

You can disguise it anyway you want. It still exists.

---

OK, last try.   An essential feature of Universal Default, as compared to general AA, was the ability to charge a penalty rate ON EXISTING BALANCES, due to an issue with another lender.    This was bad because there was nothing you could do, you owed that balance at the new rate.

Now that cannot happen, and rates cannot be changed on existing balances until you are 60 days late with that lender.     That is a real actual difference.   Of course, an issuer can look at your CR and take AA, but it can't impact existing balances (and they have to give you notice allowing you to try to find another solution).    So a major feature of UD doesn't exist, and it's not fathest from the truth to say that.

I could also point you to post 44 in http://ficoforums.myfico.com/t5/Credit-Cards/best-way-to-use-5-gas-card-in-order-to-buy-groceries-at-publix/td-p/4989915/page/5  but that would be mean.

[Anonymous]

Who cares if they banks like up or not?  I have gotten 650 dollars from Barclay this year,  50 dollars from NFCU, 84 dollars from Bank of America, 60,000 Southwest Points from Chase and now working on getting 50,000 Amex points.  Haven't paid a cent of interest.  If other people are foolish enough to pay interest or huge annual fees and subsidize our sign up bonuses and cash back and travel rewards that is their problem.  I own Wells Fargo (10K) , American Express (8k), and Toronto Domion stock (6k) and Bank of America through Bershire (10K).  Trust me they are all doing fine.  Giving out huge dividends , huge profits and having big stock increases.  My Amex stock is up 50 percent since I bought it a couple of years ago. Wells Fargo up 30 percent in less than a year I bought two times last year right after British exit vote and after account fiasco came out.  

Their profits will only increase as interest rates go up. They are charging next to nothing on savings accounts and even great customers are paying 13 percent interest.  

[Anonymous]

---

@longtimelurker wrote:

---

@Anonymous wrote:

---

You can disguise it anyway you want. It still exists.

---

OK, last try.   An essential feature of Universal Default, as compared to general AA, was the ability to charge a penalty rate ON EXISTING BALANCES, due to an issue with another lender.    This was bad because there was nothing you could do, you owed that balance at the new rate.

Now that cannot happen, and rates cannot be changed on existing balances until you are 60 days late with that lender.     That is a real actual difference.   Of course, an issuer can look at your CR and take AA, but it can't impact existing balances (and they have to give you notice allowing you to try to find another solution).    So a major feature of UD doesn't exist, and it's not fathest from the truth to say that.

I could also point you to post 44 in http://ficoforums.myfico.com/t5/Credit-Cards/best-way-to-use-5-gas-card-in-order-to-buy-groceries-at-publix/td-p/4989915/page/5  but that would be mean.

---

"Okay last try"?

Do you think your teaching me something? How many times are you going to refer to this one standard they can't implement anymore?

So ONE ONE ONE ONE ONE major feature can't be used anymore. So what? All the other features can.

UNIVERSAL DEFAULT DOESN'T EXIST IS THE FARTHEST THING FROM THE TRUTH.

[Anonymous]

---

@Anonymous wrote:
Just wondering if Credit Card Companies get tired of consumers being perfect?

For example say you have a 50k CL you regularly spend say 5-10k a month and PIF. You've had them for 5 years and never paid a dime in interest or late fees. You're benefitting from them, and being a very responsible consumer, but I can't help but wonder if creditors hate this?

It seems counterintuitive because if you're late or have a high balance your FICO score goes down and you seem like a low quality candidate for CC's.

I've seen people open an account with a bank (Chase) spend 30k out of a 50k CL within a month and PIF. Soon after they had their account closed because they're "too risky", even though they paid in full. So it doesn't make much sense to me.

---

Just checking some stuff out.  The highest accross the board (Other than USAA which has 2.5  percent but requires a checking account who are losing money on card if you don't carry interest to promote checking) cash rebate on cards is 2 percent.  World Elite Master Cards and Signature Visa's have transaction fees of 2.3 percent if swiped and 2.9 percent if keyed.  American Express changes 3 percent.  So even if you pay in full they are making money off you.  And also notice how you usually have to redeem rewards at a high rate.  For example, my Barclay Arrival + required 10,000 point redemption.  So I am sure a lot of people leave money on the table.  The best sign-up bonuses are for travel cards and I bet a lot of people never ending up using any of their points.  They intend to save up a huge amount of miles or points and then don't get around to taking trip. 

[Anonymous]

---

@Anonymous wrote:
Austin - Whether or not it raises flags as long as you pay it off (or a majority of it) within 30 days those flags should go away IMHO now I understand if you charge 30k right away and just pay the min for 3 months then it gets like really? But PIF quickly after is reasonable, and most require like 5k spend anyways to meet a bonus.. They give you a credit limit for a reason. I BT'd 12k of my 13k CL to NFCU after less than a month with the new CL and they didn't bat an eye.

As far as swipe fees most banks make 1-2% of the transaction amount in swipe/transaction fees, if they're paying you 1 or 1.5% in rewards their profit margin is either -0.5% or 0.5% which isn't even enough to cover account maintenance costs.

Haha I wish they'd let me buy a car with a CC!!! If I had the cash on hand I'd PIF the CC bill and reap the benefits/rewards. But sadly most dealerships won't accept cash or credit! No joke maybe 2 years ago I went with a friend to 2 dealerships with cash in hand ready to pay for a car (probably 20k or less) in full. They outright said no that they don't do that and instead offered to finance him. We ended up having to leave both because they wouldn't accept CASH as a method of payment.

---

No transaction fees are higher than you have.  It is higher for rewards cards. And even higher for Visa Signature, World Elite Master Card, and American Express.  I am guessing the merchants are willing to accept higher rates from these customers as these customers make the most money and will spend more. 

[Anonymous]

---

@longtimelurker wrote:

---

@Anonymous wrote:

---

You can disguise it anyway you want. It still exists.

---

OK, last try.   An essential feature of Universal Default, as compared to general AA, was the ability to charge a penalty rate ON EXISTING BALANCES, due to an issue with another lender.    This was bad because there was nothing you could do, you owed that balance at the new rate.

Now that cannot happen, and rates cannot be changed on existing balances until you are 60 days late with that lender.     That is a real actual difference.   Of course, an issuer can look at your CR and take AA, but it can't impact existing balances (and they have to give you notice allowing you to try to find another solution).    So a major feature of UD doesn't exist, and it's not fathest from the truth to say that.

I could also point you to post 44 in http://ficoforums.myfico.com/t5/Credit-Cards/best-way-to-use-5-gas-card-in-order-to-buy-groceries-at-publix/td-p/4989915/page/5  but that would be mean.

---

There is nothing you could say or point me to that would hurt my feelings, my skin is thicker than thick. I'm really excited for the person who was approved and now have both, and you should feel good that you brought that to my attention. I want to take this opportunity and thank you for pointing that out. 

It still doesn't change the fact that I was declined the BCP when I already had the BCE. Reason for decline when I called in immediately following the denial was you can't have both. 

So I'm glad you found someone who was approved and have both and made a point in bringing that to my attention. I feel bad that i must have agitated you to the point of doing that because I disagree with your view regarding Universal Default.

Lol!