Judged for using credit?

[Anonymous]

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@taxi818 wrote:
It's against federal law to charge more for use of credit card. 

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Hardly.   It's against 10 or so state laws, but allowed everywhere else.  The 2013 settlement allowed (subject to certain provisions) merchants to charge more for cc use.

Now in the states that allow it, there still hasn't been a lot of it because of competition (if I charge, and my competitor doesn't, unless I have some unique value proposition, the cc side of the biz goes there)

The 10 states include big ones though!

[Closingracer99]

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@Anonymous wrote:

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@taxi818 wrote:
It's against federal law to charge more for use of credit card. 

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Hardly.   It's against 10 or so state laws, but allowed everywhere else.  The 2013 settlement allowed (subject to certain provisions) merchants to charge more for cc use.

Now in the states that allow it, there still hasn't been a lot of it because of competition (if I charge, and my competitor doesn't, unless I have some unique value proposition, the cc side of the biz goes there)

The 10 states include big ones though!

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Hmm Which ones? 

[taxi818]

Well my best friend maxed out all his cards and is paying minimums. All the time. But I know he will recover. Where as I only owe total debt 850 or so. New laptop. But things happen. At least my friend is not late. Or missed any payments. He is bidding his time.

[mongstradamus]

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@Anonymous wrote:

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@taxi818 wrote:
It's against federal law to charge more for use of credit card. 

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Hardly.   It's against 10 or so state laws, but allowed everywhere else.  The 2013 settlement allowed (subject to certain provisions) merchants to charge more for cc use.

Now in the states that allow it, there still hasn't been a lot of it because of competition (if I charge, and my competitor doesn't, unless I have some unique value proposition, the cc side of the biz goes there)

The 10 states include big ones though!

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For me here an lot of gas stations charge up to 10 cents more an gallon , i know ny and ct both charge different prices for cash and credit for gas. 

[taxi818]

In Florida. Mostly. Credit same as cash. Competition.

[barbaralee]

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@Closingracer99 wrote:

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@barbaralee wrote:

I work at a company that services financial institutions, mostly credit unions but banks as well. I see credit card statements all day, everyday, and to judge that someone using a credit card is in debt is (in my experience) not a far off assumption. The vast majority of the accounts that I pull up the people are not only in debt, they are barely making the minimums, and immediately charging it back up. We were looking at a statement the other day for training purposes and the cardholder's interest to date was close to $600. 

A few years back when I worked in credit cards for USAA I would say it was an almost even ratio of people in debt vs those who pay off. One thing that was pretty consistent across the board:

If the member was older or retired they were usually a PIF'er.

If they were younger/middle aged they were in debt. 

And yes, I do believe a few of my friends think I am in debt, lol. I don't blame them! If I see people using credit cards I often wonder how much debt they are in as well. 

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Well I am 23 and not really in "debt" I am carrying a $394 balance on my Chase Freedom because it is 0% APR and rather just float it.. to make the assumption a person is in debt is wrong.   All my friends who have Credit cards aren't in debt either 

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Yeah, but you are also posting on a credit forum. I doubt many other 23 year olds are...  

I also don't see the point of carrying a piddly balance just because of 0%, but different strokes for different folks. 

[Closingracer99]

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@barbaralee wrote:

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@Closingracer99 wrote:

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@barbaralee wrote:

I work at a company that services financial institutions, mostly credit unions but banks as well. I see credit card statements all day, everyday, and to judge that someone using a credit card is in debt is (in my experience) not a far off assumption. The vast majority of the accounts that I pull up the people are not only in debt, they are barely making the minimums, and immediately charging it back up. We were looking at a statement the other day for training purposes and the cardholder's interest to date was close to $600. 

A few years back when I worked in credit cards for USAA I would say it was an almost even ratio of people in debt vs those who pay off. One thing that was pretty consistent across the board:

If the member was older or retired they were usually a PIF'er.

If they were younger/middle aged they were in debt. 

And yes, I do believe a few of my friends think I am in debt, lol. I don't blame them! If I see people using credit cards I often wonder how much debt they are in as well. 

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Well I am 23 and not really in "debt" I am carrying a $394 balance on my Chase Freedom because it is 0% APR and rather just float it.. to make the assumption a person is in debt is wrong.   All my friends who have Credit cards aren't in debt either 

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Yeah, but you are also posting on a credit forum. I doubt many other 23 year olds are...  

I also don't see the point of carrying a piddly balance just because of 0%, but different strokes for different folks. 

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Well it was up to $1,000 about 2 months ago .... I just feel like floating the rest lol

[Anonymous]

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@barbaralee wrote:

I work at a company that services financial institutions, mostly credit unions but banks as well. I see credit card statements all day, everyday, and to judge that someone using a credit card is in debt is (in my experience) not a far off assumption. The vast majority of the accounts that I pull up the people are not only in debt, they are barely making the minimums, and immediately charging it back up. We were looking at a statement the other day for training purposes and the cardholder's interest to date was close to $600. 

A few years back when I worked in credit cards for USAA I would say it was an almost even ratio of people in debt vs those who pay off. One thing that was pretty consistent across the board:

If the member was older or retired they were usually a PIF'er.

If they were younger/middle aged they were in debt. 

Of course there are always exceptions... I spoke with a judge once that I tried my darnest to get his credit line increased. He was grandfathered in from years ago and had 50k credit line, which was maxed. He was needing his credit extended to pay his taxes. I spoke with three underwriters on his behalf, it was a no go.

Another young man I talked to was so paranoid about how having a credit card affected his credit that he would use the card and pay it off as soon as it posted. But like I said... these guys were the exceptions to the general rule, imo. 

And yes, I do believe a few of my friends think I am in debt, lol. I don't blame them! If I see people using credit cards I often wonder how much debt they are in as well. 

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And another thing, which some here say doesn't apply to them, but...!  Some studies have shown that reward credit cards cause people to spend more.  This is perhaps partly because it causes things to seem cheaper ("I only wanted to spend $80, and this is $100, but I will get points!") or spend towards a goal "If I get 4000 more points I will be able to get that UA ticket.  How can I get those points?" or maxing out a quarter category to get the most benefit (Need to get that $1,500 spend on Freedom by the end of Sep!"   So this is a potential debt-enabling feature of credit cards.

Now everyone can say "Not me, I only buy what I was going to any way" and I will silently disbelieve!

[barbaralee]

Also, my husband is 25 and I am 32, I think we are both considered "young", lol. We carry no revolving debt as well, so I do recognize that there are smart younger folks who know how to play the credit card game but I still believe that we are the exception to the norm. 

[barbaralee]

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@Anonymous wrote:

Now everyone can say "Not me, I only buy what I was going to any way" and I will silently disbelieve!

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LOL, I do this ALL the time.