annual credit card fee? WTH?

danger boy

so yeah.. BOA is trying something out.. to see how long consumers will tolerate a annual fee of between $29 and $99 EVEN if you pay your bill off monthly. those who pay their bill off monthly are not making any money for credit car companies. that bites.

bobman1235

So get a different card... there's plenty out there (for now) that don't have a fee.

And yes they are making money off of you even if you pay off your card every month, because they get a fee for every transaction from a merchant / vendor.

THey're not making as much as if you were irresponsible, but believe me they wouldn't let you do it if they were losing money.

vc69

Just say NO to credit cards. Your life will thank you.

obieone

That's why I cancelled my AMEX card. I had to pay it off, and pay an annual fee of $55.

PhantomOG

Chase pays me an average of $50 a month for the privilege of being my primary use card... no annual fee of course.

If any of my cards tried to pull an annual fee it would be canceled immediately.

danger boy

just saying.. but BOA is only one company going to do this.. all the other's will follow

what would happen if we all didn't use our credit cards for a month? How would the banks react? I mean 100% of all the people who have no balance and don't use their card for a whole month? i think that would be fun. I wanna see the banks pee their pants.

ryanjoachim

My wife had a BOA card for a couple years before she met me. She was never late on payments, and always paid more than the minimum payment.

2 years ago, without any reason, BOA jacked her interest rate from 8% to 16%. Payments were around $150 or so at that point. She continued to make payments, without missing any. Last year they jacked up the interest rate again to 30%.

That put the payments upwards of $300 a month. We stopped paying them. I know the consequences of that, but when it's a choice between a place to live or feeding your family, you have to say "fvck you" to heartless companies with shady business practices.

Demiurge

vc69 wrote: »

Just say NO to credit cards. Your life will thank you.

Huh...?

Just say yes to free money is my motto.

madmax

I like the Discover and AMEX blue card. No yearly fees plus 5% cash back. No matter what the card don't carry a balance, it will get you at some point.
madmax

exalted512

That sucks, but just switch cards.
-Cody

nguyendot

Hmm I havent seen this - I have 2 BOA cc's, one rewards one not. I pay the full balance for last month each month so I don't worry about interest. If they pulled a fee I'd call and have some words for sure.

thuffman03

All the banks are looking for ways to generate income. The government is making it harder for them to write off bad debt.

So since they can't write off people who default on their debt they have to raise rates, charge larger fees and I guess now go back to charging an annual fee.

dave shepard

They are making money even if you pay off your bal. every month. They are making at least 3% of all sales and charge every business a monthly fee of at least $30 for just being able to accept their card in the course of their business and there is either a monthly rental fee for the card swiper unless they bought it outright which is or can be expensive and they have to pay these fees even if they haven't sold a thing for the month. So if you see a business that accepts all cards they have to pay each of these cards their monthly fees. So you think they aren't making money because you pay your bal. off every month think again.
So if you work for a business and have a monthly statement of $10k the Card Co. made At least 3% of that plus their monthly fee's from every business you delt with.
I looked into taking them for my business and changed my mind after seeing this and figured that for the most part my clients pay in cash or check there is no real need anyhow.

Dave

bsoko2

If everybody didn't use a credit card for one day, what effect would that have on rates?

Bill

bobman1235

bsoko2 wrote: »

If everybody didn't use a credit card for one day, what effect would that have on rates?

It's a meaningless thought experiment because you'd never get that many people to do anything, but it would have zero effect on rates, just like all of those stupid "don't buy gas on Tuesday!" emails that go around every time gas prices go up. These are giant corporations, their operations can certainly handle a 24 hour glitch.

billbillw

Actually, its Visa and Mastercard (not to be confused with the card issuing bank) that make the biggest % fee off each transaction, as well as the monthly cost from businesses. The Banks (BOA, etc) might get a small % of that, but the majority goes directly to VISA and MC.

That's why VISA and MC are doing great, but the banks are not. They get their fees regardless of whether the card holder ever pays his bill.

apphd

Now that we (American tax payer) own so much interest in many banks maybe this is a good thing.:rolleyes: We are in such a FUBAR situation right now I can't believe I can still find a way to make fun of it. Maybe some of our prosperous years of past were falsely inflated by the ridicules amount of consumer spending of money many did not have. Fueled by some of the Gov. pressure to give credit to those that could not afford it. It sure did look good for a while, but unfortunately for us and our great great grandchildren, the bill is now due.

Just my rambling mind sifting through a lot of crap right now.:o
Many will disagree, many will say "what??" some may agree. It's history now anyway so no need to derail this thread anymore.

steveinaz

Get ready for all kinds of stupid crap from CC companies. They're trying to capitalize while they still can.

Many people don't realize that there is a "catch all" statement on ALL credit card terms of service; it has to do with anytime that they "feel" you are a credit risk, for whatever reason they deem important, your terms can change. This can mean that if you make a minimum payment on another loan or card (regardless if you're always on time) they can take this to signal that you are struggling, and therefore a risk. This is just one of many examples. Bottom line, there is NO protection for the consumer, only the CC company.

They can, and will do whatever they want; legally. The only way to avoid this **** is not to have a credit card, period. Use your debit card instead for hotels, rental cars, reservations, etc.

tcrossma

steveinaz wrote: »

Use your debit card instead for hotels, rental cars, reservations, etc.

And then there is next to no protection on those purchases.

As with just about anything, there are good and bad points to credit cards. Used thoughtfully and carefully they can be a huge help in managing your personal finances and make your life more convenient. Abuse them and they can wreak major havoc in your life.

PhantomOG

steveinaz wrote: »

They can, and will do whatever they want; legally. The only way to avoid this **** is not to have a credit card, period. Use your debit card instead for hotels, rental cars, reservations, etc.

...for people who do not have the discipline/responsibility required. If you do though, credit cards offer many more benefits than debit cards, and much less risk in case of fraud.

I guess I shouldn't be nosing in this thread. People who complain about fees, interest/interest rates are precisely the reason I get such great benefits from my credit cards. I'm firmly aware that the contract I signed with the credit card companies allow them to change the terms at any times. Fortunately for me, I have the responsibility and means that I can drop said credit cards at anytime that I'm no longer happy with the terms without paying one red cent in anything other that purchases I have made.

steveinaz

tcrossma wrote: »

And then there is next to no protection on those purchases.

As with just about anything, there are good and bad points to credit cards. Used thoughtfully and carefully they can be a huge help in managing your personal finances and make your life more convenient. Abuse them and they can wreak major havoc in your life.

Incorrect. A debit card is a bank card tied directly to your checking/savings account (at least mine is). There is no interest rate as all transactions are withdrawn on the spot. Totally different from a credit card.

PhantomOG

steveinaz wrote: »

Incorrect. A debit card is a bank card tied directly to your checking/savings account (at least mine is). There is no interest rate as all transactions are withdrawn on the spot. Totally different from a credit card.

The *ONLY* thing a debit card has over a credit card is limiting the user to the amount of money in the tied checking account, and even that is negated in most cases by overdaft protection -- yep, more FEES.

You want to complain about CC fees? Guess what, banks make more on debit card overdraft fees than on CC fees.

http://www.nytimes.com/2009/09/09/your-money/credit-and-debit-cards/09debit.html?_r=2&src=twt&twt=nytimes&pagewanted=all

When it comes down to it, if you don't have the discipline required to own and handle a credit card properly, you should probably just stick to cash.

steveinaz

PhantomOG wrote: »

...for people who do not have the discipline/responsibility required. If you do though, credit cards offer many more benefits than debit cards, and much less risk in case of fraud.

I guess I shouldn't be nosing in this thread. People who complain about fees, interest/interest rates are precisely the reason I get such great benefits from my credit cards. I'm firmly aware that the contract I signed with the credit card companies allow them to change the terms at any times. Fortunately for me, I have the responsibility and means that I can drop said credit cards at anytime that I'm no longer happy with the terms without paying one red cent in anything other that purchases I have made.

It has close to nothing to do with responsibility and/or discipline. Right now credit card companies are targeting even their excellent customers (I know, I AM one). Fortunately for me, I have the means to deal with it---many others don't.

If everyone had the means to pay off an ccount at the drop of a hat, we wouldn't even be talking about this topic--If you can't see that some of this crap they are pulling is pure ****, you are blind. Tell me why my interest rate should climb an additional 14.9% on an account that I have for the last 6 years paid quadruple the minimum payments on, with not a single instance of being late or otherwise compromising what I agreed to? If I'm a credit risk, how the hell can I afford to make quadruple amount payments? It's crap, pure and simple.

steveinaz

PhantomOG wrote: »

The *ONLY* thing a debit card has over a credit card is limiting the user to the amount of money in the tied checking account, and even that is negated in most cases by overdaft protection -- yep, more FEES.

You want to complain about CC fees? Guess what, banks make more on debit card overdraft fees than on CC fees.

http://www.nytimes.com/2009/09/09/your-money/credit-and-debit-cards/09debit.html?_r=2&src=twt&twt=nytimes&pagewanted=all

When it comes down to it, if you don't have the discipline required to own and handle a credit card properly, you should probably just stick to cash.

Of course, my statement is assuming that you as the consumer are doing the right thing. Debit cards are far safer than credit cards, given you have a brain between your ears.

bobman1235

Aren't there new laws going into effect soon that are supposed to limit this? I remember hearing something along the lines of their not being able to change your interest rate based on OTHER credit factors, only your experience with them, in particular. That's one of the reasons a lot of people are getting nailed right now - the CC companies are trying to get everyone's rate up while they can still do it legally.

PhantomOG

steveinaz wrote: »

Tell me why my interest rate should climb an additional 14.9% on an account that I have for the last 6 years paid quadruple the minimum payments on, with not a single instance of being late or otherwise compromising what I agreed to? If I'm a credit risk, how the hell can I afford to make quadruple amount payments? It's crap, pure and simple.

And yet you just agreed that credit cards make individuals agree to terms that can be changed at anytime. Guess what... credit cards are NOT a vehicle for long term loans. If you think they are, you do NOT fall into the responsible category.

PhantomOG

steveinaz wrote: »

Of course, my statement is assuming that you as the consumer are doing the right thing. Debit cards are far safer than credit cards, given you have a brain between your ears.

If you assume the consumer is doing the right thing, then credit cards are better than debit cards, period. You pay absolutely no fee, no interest, and you don't have the risk of a tied account. Plus you get better rewards, float, better purchase protection.... the list goes on an on.

steveinaz

Well now, hindsight is 20/20 isn't it. Brilliant.

Bottom line, you can follow your TOS to the letter and yet still get ****. If you find that sort of ethic "fair" sorry, but we have nothing in common.

shack

steveinaz wrote:

Debit cards are far safer than credit cards, given you have a brain between your ears.

Unfortunately...that is just not the case.

With a debit card, if you fail to notify the bank within two days of it being stolen, you can be held liable for as much as $500. You may even have UNLIMITED liablity if you fail to report an unauthorized transfer within sixty days of when the bank sent you the statement with the unauthorized transfer shown on it. If your card is fraudulently used by someone that you previously gave your PIN to, you may be held responsible for all of their fraudulent charges.

There is also the risk that the Debit Card theft can result in depleting all of the funds in the account as checks are clearing. If that is the case, you may get your money back if the theft is timely reported, but there is still the cost of the bounced checks by both the bank and the recipient. The bank MAY give those back, but merchants who charge a bounced check fee wont.

Credit card holders liability for a lost or stolen credit card is limited. If you notify the card issuer within two days of a lost or stolen card, you are not legally held responsible for any fraudulent charges. If you notify the card issuer after two days the most you can be held liable for is $50.

Demiurge

Man, I wonder how you guys all got sore cornholes from your credit card companies. I have never had a problem with them, and I don't think I'm lucky as much as I just pay attention.

steveinaz

PhantomOG wrote: »

If you assume the consumer is doing the right thing, then credit cards are better than debit cards, period. You pay absolutely no fee, no interest, and you don't have the risk of a tied account. Plus you get better rewards, float, better purchase protection.... the list goes on an on.

Get real. Make a late payment on that CC, there will be a fee, just like overdrafting a debit card. Interest? Non existent with a debit card, now, have hard month and have to carry that CC balance---interest due. Of course I gather you never have a hard month, because you are responsible. Only the irresponsible fall on hard times.

Rewards? you're not serious are you?