@09Lexie wrote:
@TheGardner wrote:I kind of agree, if you are a "prime lender" you should at least offer sub 10% cards. Of course you would need to qualify (super prime scores) but this would reward your history/scores.
I don't think a lender should not be allowed to FR an individule, they are lending you money after all.. But Amex will close your account for carrying a balance on another issuers card if deemed to be too high or for too long. I understand this is why they lead the industry in CO BUT they don't use those savings to reward thier good customers via better rates. Are they worth the hassle?
Not sure why you consider managing your finances so that you are not at risk of an AA a hassle. Amex, Citi, Chase, BoA - any lender can and will CLD you if your credit profile warrants the AA. Most lenders will simply cut you off and you'll get a letter. Amex at least offers you the ability to provide income documents.
I am not tooting Amex's horn and don't want you to think they are the end all be all. Like anything, if the lender doesn't fit with your comfort level, move on to one that gives you what you are needing.
I like the diversity of having cards from big banks to CU. Never put all your eggs in one basket.
Wise counsel...
@09Lexie wrote:
@TheGardner wrote:I kind of agree, if you are a "prime lender" you should at least offer sub 10% cards. Of course you would need to qualify (super prime scores) but this would reward your history/scores.
I don't think a lender should not be allowed to FR an individule, they are lending you money after all.. But Amex will close your account for carrying a balance on another issuers card if deemed to be too high or for too long. I understand this is why they lead the industry in CO BUT they don't use those savings to reward thier good customers via better rates. Are they worth the hassle?
Not sure why you consider managing your finances so that you are not at risk of an AA a hassle. Amex, Citi, Chase, BoA - any lender can and will CLD you if your credit profile warrants the AA. Most lenders will simply cut you off and you'll get a letter. Amex at least offers you the ability to provide income documents.
I am not tooting Amex's horn and don't want you to think they are the end all be all. Like anything, if the lender doesn't fit with your comfort level, move on to one that gives you what you are needing.
I like the diversity of having cards from big banks to CU. Never put all your eggs in one basket.
Not sure when I implied managing my finances were a problem or a hassle. If I left that impression, I apologize for misleading you. These AA have never happened to myself.
I agree with not having all eggs in one basket, and am aware of balance chasing/CLD/closures from other banks aswell. My point may have been missed in that statement though as they don't reward the customers for thier good credit with more favorable rates.
Of course measuring rewards structure would help, but would you consider the card at 13% higher APR a better value card? By that I mean any additional rewards worth the possibility of one day paying the additional APR?
We plan to never carry a balance, but at the same time pad our CL so if we did the UTIL will remain low..
@lg8302ch wrote:Why should we rate the cards according to APR? I would have a very interesting result...Superprime for BofA with 9,99% APR for the Cash and Travel rewards card...but what should I say to Chase with 22,99% APR ??
For me it is the big and major lenders and the overall package but that includes a bit more than just APR ...LOL
@TheGardner wrote:
@09Lexie wrote:
@TheGardner wrote:I kind of agree, if you are a "prime lender" you should at least offer sub 10% cards. Of course you would need to qualify (super prime scores) but this would reward your history/scores.
I don't think a lender should not be allowed to FR an individule, they are lending you money after all.. But Amex will close your account for carrying a balance on another issuers card if deemed to be too high or for too long. I understand this is why they lead the industry in CO BUT they don't use those savings to reward thier good customers via better rates. Are they worth the hassle?
Not sure why you consider managing your finances so that you are not at risk of an AA a hassle. Amex, Citi, Chase, BoA - any lender can and will CLD you if your credit profile warrants the AA. Most lenders will simply cut you off and you'll get a letter. Amex at least offers you the ability to provide income documents.
I am not tooting Amex's horn and don't want you to think they are the end all be all. Like anything, if the lender doesn't fit with your comfort level, move on to one that gives you what you are needing.
I like the diversity of having cards from big banks to CU. Never put all your eggs in one basket.
Not sure when I implied managing my finances were a problem or a hassle. If I left that impression, I apologize for misleading you. These AA have never happened to myself.
I agree with not having all eggs in one basket, and am aware of balance chasing/CLD/closures from other banks aswell. My point may have been missed in that statement though as they don't reward the customers for thier good credit with more favorable rates.
I was referring to your statement and when I typed 'your ' I was being in general not pointing at you specifically.
Credit lending is a business. Large financial institutions are not your friend when it comes to rewarding you by lowering your rate. That is not to say that the do not lower aprs, Discover has done it for me twice, Nordstrom Visa as well. Does that mean my credit is any better to them?
Try as I might, Chase isn't going to lower my APR on my siggys because when I applied that was the lowest rate. For those lenders that have tiered rates, yes I do ask for a rate reduction. It doesn't make that card less prime or me a better customer if they do or do not honor my request.
I guess as with all things credit this too will remain a mystery.
While banks are NOT our friends they do not seem to have to woo the consumer either with better rates. These rates get overly inflated for some usefull or some not so usefull rewards programs which are being used to deflect consumers attention from the high APR. For every $1 you get back they made $2 , just feel there should be more serious competition for that $2 ..
My discussion was more academic than anything else. I guess as the consumer we have to decide which cards are best for us and if the lenders rewards value vs rates are deemed acceptable to the individual. The term "prime" I still feel is more legacy than substance while subprime is truly a term earned vs given.
@Chris679 wrote:
@TheGardner wrote:I do get that, but over 15% still seems high considering AF/Processing Fee and the additional 5+% APR for a couple percent "Reward" ?
Of course paying in full minimizes the additional APR but still doesn't feel like these cards are "Prime".
Chase/Citi/BofA has reward cards for 13.99 as do several other banks and credit unions that are considered less than prime.
Paying in full doesn't minimize the additional APR, it completely eliminates it. My credit union has a card with 7.75% APR that they hand out to anyone who wants it pretty much. Its great if you want to keep a balance but a joke in every other way compared to BCE or most of the good rewards cards out there. And it's not just the rewards that make those cards appealing. AMEX for example has a laundry list of card member benefits that go far beyond just the rewards (which are great too).
If you want to know the difference between one of the "prime" cards and something like my CU card, try to dispute a charge sometime or get a defective item replaced by the manufacturer.
Your CU card would be prime to me, credit cards were never designed to make you money they are designed to take your money, the rewards programs are designed with taking your $ in mind, they are an addiction just like gambling to many who spend, spend, spend just for those rewards and end up burying themsevles in debt. Dont come back and tell me well wouldnt happen if they PIF, that is not the point the point is they know (the issuers) how to get every dollar out of you they can by making you think you are pulling one over on them. Enjoy 
@gdale6 wrote:
@Chris679 wrote:
@TheGardner wrote:I do get that, but over 15% still seems high considering AF/Processing Fee and the additional 5+% APR for a couple percent "Reward" ?
Of course paying in full minimizes the additional APR but still doesn't feel like these cards are "Prime".
Chase/Citi/BofA has reward cards for 13.99 as do several other banks and credit unions that are considered less than prime.
Paying in full doesn't minimize the additional APR, it completely eliminates it. My credit union has a card with 7.75% APR that they hand out to anyone who wants it pretty much. Its great if you want to keep a balance but a joke in every other way compared to BCE or most of the good rewards cards out there. And it's not just the rewards that make those cards appealing. AMEX for example has a laundry list of card member benefits that go far beyond just the rewards (which are great too).
If you want to know the difference between one of the "prime" cards and something like my CU card, try to dispute a charge sometime or get a defective item replaced by the manufacturer.
Your CU card would be prime to me, credit cards were never designed to make you money they are designed to take your money, the rewards programs are designed with taking your $ in mind, they are an addiction just like gambling to many who spend, spend, spend just for those rewards and end up burying themsevles in debt. Dont come back and tell me well wouldnt happen if they PIF, that is not the point the point is they know (the issuers) how to get every dollar out of you they can by making you think you are pulling one over on them. Enjoy
It wouldn't be advantageous for the issuers to get you to "bury yourself in debt." They want to keep you as a source of revenue for an extended period of time, not drive you to default. Market research shows that the rewards programs do get people to spend more on their cards, but many people do this responsibly. The rewards are there to make you want to use their card over some other payment method (dedicating more of your spend to them, not necessarily increasing your spend). For example, I use my BOA card for gas. Do I buy any more gas than I used to? Absolutely not. But now I get 3% of what I spend back simply for swiping a different piece of plastic at the pump.
