Credit card companies threatening to cancel cards

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I have no problem with having or other people having credit cards when used responsibily. I have never charged anything without having a plan for repayment. Yet I also get cash back on two of my cards, effectively lowering the price of many things I purchase, such as gas. I cleared over $600 in cash back last year this way. My credit score is top shelf, I pay my balance in full these days, yet due to the irresponsibility of others, I get my interest rates (which virtually never come into play) raised, my terms made worse, and credit limits lowered.

I could live without the cards, but why should I be penalized for others who either won't use credit or use it irresponsibly?
 
Originally Posted By: xxch4osxx
I do not have any credit cards nor do I want any. I only buy things I can pay for in cash. Credit cards make it too easy to get into debt trouble, as alot of people seem to forget they have to pay for things they put on their cards. I can live without any credit cards, why cant more people do the same?


I guess I could say a form of the same thing. I've earned over $500 in cash back bonus over two years with that card and didn't pay a dime of interest.

So why can't other people do the same. Use the cards, pay them in full each month and not pay interest and feels. And that's just rebates on gasoline.

When I traveled for work, I used to max out two rewards cards. I get much of my Christmas shopping done using cash back rewards and the discounted gift cards I can buy with the rewards money from my Discover Card each year.
 
Credit card companies make money off of the irresponsible. Now, they are getting burned big time by them. It's time to get cash from the responsible credit card holders. They know we are good for the money!
 
That's just it. They don't make as much money from the responsible, so they apparently only want accounts from the irresponsible. Probably want a government bailout for the irresponsible people that don't pay.
 
Originally Posted By: javacontour
So how do you get money from the responsible by canceling their accounts?
Government bailouts.....we want your money but you get no benefit from it other than we don't melt down the financial market.
 
Originally Posted By: ZZman
This is why I stick with local credit unions.


There is no guarantee that the CU will be run properly. Fortunately, their footprint is small enough not to cause any shocks in the system when they fail. Usually NCUA or CUNA require them to merge with a more successful CU if most of their assets can be salvaged so that they have a larger risk pool.
 
Originally Posted By: xxch4osxx
I do not have any credit cards nor do I want any. I only buy things I can pay for in cash. Credit cards make it too easy to get into debt trouble, as alot of people seem to forget they have to pay for things they put on their cards. I can live without any credit cards, why cant more people do the same?


Can you fly, stay in a hotel, or rent a car w/o a credit card?
 
Originally Posted By: benjamming
Can you fly, stay in a hotel, or rent a car w/o a credit card?


I've done those first two things without one. Hotel did request a cash security deposit. Haven't tried renting a car.
 
Originally Posted By: benjamming
Originally Posted By: xxch4osxx
I do not have any credit cards nor do I want any. I only buy things I can pay for in cash. Credit cards make it too easy to get into debt trouble, as alot of people seem to forget they have to pay for things they put on their cards. I can live without any credit cards, why cant more people do the same?


Can you fly, stay in a hotel, or rent a car w/o a credit card?
I dont do any of those things, so, they dont affect me.
 
Originally Posted By: javacontour
So how do you get money from the responsible by canceling their accounts?


They are canceling unused credit cards, lowering credit card limits, or raising interest rates. Two out of my 3 credit cards have raised my interest rates for no reason on my part. I pay off my balance every month, but it still irks me.
 
While I agree with those that don't use the credit card you also are hurting your credit score which also can affect your insurance rates and in some cases even job hunts. What I have done is get one no fee CC and buy stuff with it and then make sure that I pay it off during the month. I usually check my balance 3 times a month and pay whatever is there then, if any. Also I find that having a credit card while traveling works good and can be a backup in case of having a problem. At least if I break down I can pay the bills and then when I get back can worry about transferring the money. However too many people got hooked on multiple cards offering discounts for this and that and making min payments. I believe that both are a problem. It seems like people will spend a little more with the discount cards saying that they get cash back anyway. These companies aren't offering the cards without figuring out that it pays off in the long run. Min payments are always a no no. Ideally pay off at once or within 2 or 3 months. Otherwise don't buy, or at least not on credit.
 
Chase said that about my Amazon card which I signed up for to get a discount but didn't get the discount because they couldn't approve it at the time(tier 1 credit). I got the card and never activated so they kept charging me an annual fee and then crediting it every time. They stated it would be cancelled today(probably was, don't give a rats patooty).

I have a CitiBank card that has treated me well and has an astronomically high credit limit and low interest rate. I paid off my other chase card and have the money to pay down about 80% of my CitiBank card, just waiting on our Condo situation to improve(FHA and Condo Association headaches).

I do believe it's wrong for them to force an account closed, it doesn't cost them much money, if any at all to have the account opened. You are getting penalized for not falling into the credit card hole. So your good credit will get slammed if you have high debt and low credit ratio's.
 
Originally Posted By: ArrestMeRedZ
That's just it. They don't make as much money from the responsible, so they apparently only want accounts from the irresponsible.


They're not canceling accounts of responsible users. They're canceling accounts of NON-users, or in some cases adding an annual fee.

If you're a customer who charge hundreds of dollars per month and always pay it off, they will love you because you pose virtually no risk and they still earn their 2% merchant fee. They will not cancel your account.

I have had 10+ credit cards over the years and have never had a frequently-used card canceled. But I've had 2 idle ones canceled.
 
Originally Posted By: Vilan
Originally Posted By: benjamming
Can you fly, stay in a hotel, or rent a car w/o a credit card?


I've done those first two things without one. Hotel did request a cash security deposit. Haven't tried renting a car.


I've read the rental agreements, and yes you can rent a car without a CC but you have to put down a cash deposit around $300-500, equivalent to the deposit hold they put on your CC.
 
Originally Posted By: tonycarguy
Originally Posted By: ArrestMeRedZ
That's just it. They don't make as much money from the responsible, so they apparently only want accounts from the irresponsible.


They're not canceling accounts of responsible users. They're canceling accounts of NON-users, or in some cases adding an annual fee.

If you're a customer who charge hundreds of dollars per month and always pay it off, they will love you because you pose virtually no risk and they still earn their 2% merchant fee. They will not cancel your account.

I have had 10+ credit cards over the years and have never had a frequently-used card canceled. But I've had 2 idle ones canceled.


Not true. We used our card to the tune of $400-500/month in order to earn $20-25/month in cash back bonus money.

Read the comments on the Citibank Yanks MasterCard... links above. Most folks were users of the card, paid in full or used it primarily for fuel only.

It was a decision to stop giving away cash to folks who earned them little or no interest or fees.

Again, I have no problem with such decisions. However, read the sequence of events, accounts closed on 10/14, but no letter sent until 10/19.

Poor way to treat your customers.
 
Citi closing MasterCard Accounts

This story dovetails with mine. Customer uses the card, finds out at the pump that the card is canceled. Some lame story about bad information on a credit report. Customer pulls report and learns there is no bad information there.

So let's be clear, we are not talking about unused cards, but a unilateral and unannounced decision to close cards without warning.
 
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