@Aim_High wrote:
@Anonymous wrote:Curious how different the card issuers have treated you when comparing carrying a balance and paying interest, versus paying in full each month?
Do those lower risk that pay in full get credit decreases, account closures etc similar to the higher risky revolvers? ... Everything I've seen is carrying a balance for a while and the balance chasing often begins once you start to pay it down. Curious if that pay in full most of the time and aren't charging huge amounts, are you getting credit line decreases etc?
My boss that makes way more than me charges on average 10k a month on his chase sapphire and chase seems to love him and treats him well. His swipe and % fees add up I'm sure
Welcome to My Fico Forums!
The correct term is Revolvers and Transactors, not Deadbeats although I've heard some banks might use that term internally. Transactors pay in full monthly. Revolvers carry a balance.
Balance chasing generally occurs when someone runs up a balance on many cards (overall utilization climbs) and/or there are late payments or other derogatory information posted on someone's credit file. Banks will move to mitigate their risk. Carrying routine balances where utilization is kept moderate to low usually doesn't lead to balance chasing. It has to be getting out of control.
Credit line decreases may come about when someone's utilization climbs, derogs increase, or even when someone is not using their account. From my experience, for transactors who PIF, even if they don't run up a huge statement balance as a percentage of their credit line, lenders will not do CLD. I have high credit limits that have not been decreased even though I don't use the majority of them. On the other hand, I have been CLD'd in the past when I was carrying a lot of debt. In some cases, accounts were even closed by the lender.
So while lenders do love those revolvers who pay them interest, they do not usually penalize those transactors who do not. Transactors are important to the banks also because their more reliable credit profile entails less risk and they generate the banks a lot of swipe fees even if they aren't paying interest. Also, some banks are also making money from their credit card customers from other sources such as bank deposits and loans, so the credit card fees are only part of the picture. So your boss is a good example when it comes to banks loving transactors.
Deadbeat is an internal term for those who always PIF.
Not sure how profitable transactors or deadbeats are to the issuer once prominent rewards structures came into place.
@Save-n-Invest wrote:I'm always pay in full. American Express has taken AA twice in less than five years. Scores are north of 800 and have been during that time period. Amex has also tried to weasel out of honoring reward structure. My problem child.
My normal card issuers have never taken AA of any kind. I tend to use those more frequently to avoid hassles and wasted time on the phone resolving issues.
There is more to this story. American Express does not give AA solely for pay in full and scores north of 800. This describes a very large segment of their membership population.
