Goodbye usairways mastercard!
Sep 9, 2009, 6:42 am
#16
Original Poster
Join Date: Aug 2008
Location: Arlington, VA
Programs: Delta PM, USAir SM, Starwood SPG, AVIS President's Club
Posts: 151
For the same reason that the 'charge-for-water' bothered me, even though my upgrade percentage is near 100%. Not to sound egoistic about it, but my income level, travel and spending patterns make me a prime customer, and I expect to be treated like one.
Sep 9, 2009, 6:42 am
#17
Original Poster
Join Date: Aug 2008
Location: Arlington, VA
Programs: Delta PM, USAir SM, Starwood SPG, AVIS President's Club
Posts: 151
Not completely true -- there are interchange fees that make these cards profitable for issuers based on usage.
Sep 9, 2009, 8:42 am
#18
Join Date: Sep 2000
Location: DCA/IAD
Programs: AA EXP; 1W Emerald; HHonors Diamond; Marriott Gold; UA dirt
Posts: 7,819
Agree. The bank makes money every time you make a purchase. Its small, but it adds up - probably in the range of 1% to 2%. 1% of $100k in spending = $1,000 for offering a card.
Sep 9, 2009, 8:56 am
#19
Join Date: Apr 2002
Location: USA
Programs: AA MARRIOTT Lifetime Plat Premier ; Marriott Vacation Club
Posts: 1,650
throw the scoundrels out !
Well, at least the OP's user name correctly reflects their outlook on things credit cards and flying. Otherwise, it's all a non-starter for me as things are what they are.
I didn't know the specifics about what Barclays charges when one is late etc., but that's how all of the banks behave. Then again, it's only a problem if you're late or miss a payment. Granted, it is annoying as I think many of us have accidently been late with a payment on occassion -- but it's all the more reason to stay on your toes.
So it's no surprise that Barclays plays the game or that folks in Washington insist that they are here to help me. I ignore all of them. At least a credit card has a credit limit on it. Terms limits would do a lot to solve the political side of the equation.
Barry
I didn't know the specifics about what Barclays charges when one is late etc., but that's how all of the banks behave. Then again, it's only a problem if you're late or miss a payment. Granted, it is annoying as I think many of us have accidently been late with a payment on occassion -- but it's all the more reason to stay on your toes.
So it's no surprise that Barclays plays the game or that folks in Washington insist that they are here to help me. I ignore all of them. At least a credit card has a credit limit on it. Terms limits would do a lot to solve the political side of the equation.
Barry
Sep 9, 2009, 9:17 am
#20
Join Date: Nov 2003
Location: AVL
Programs: AA EXP ; Cunard Plat
Posts: 4,211
Sign of the times :sigh:. I learned as a child the hard way that fire is both helpful and harmful and to be careful; similarly, gotta be careful using credit cards like this one from Barclays, and I'll keep using it (closed all my BofA accounts recently) with care.
Sep 9, 2009, 10:18 am
#21
Join Date: Mar 2003
Location: Los Angeles, CA
Programs: UA 1K 1MMer & LT UC (when flying UA); Hyatt Credit Cardist; HHonors Diamond; Marriott Gold via UA 1K
Posts: 6,956
Welcome to the new credit card reality. When my BofA Visa "transitioned" to Barclays, they "quietly" reduced my credit limit from $25K-->$10K. I have never once been late or carried a balance, so by their records I present as close to a 0% credit risk as possible. My other credit cards have slowly moved in the same direction, with the exception of my CO Presidential Plus Master Card.
The key to remember is that you have the power to beat these suckers at their own game. Leverage what you can in the way of perks, and as other posters have mentioned above, it will not make a difference to you one way or the other as long as you are never late or carry a balance.
Wall Street and Main Street both have short memories, so when the liquidity crisis subsides, credit will gradually become more plentiful. When that happens, you can call your credit card companies and ask to have your credit limits raised. In the meantime, just try not to let it get to you too much. Life's too short!
The key to remember is that you have the power to beat these suckers at their own game. Leverage what you can in the way of perks, and as other posters have mentioned above, it will not make a difference to you one way or the other as long as you are never late or carry a balance.
Wall Street and Main Street both have short memories, so when the liquidity crisis subsides, credit will gradually become more plentiful. When that happens, you can call your credit card companies and ask to have your credit limits raised. In the meantime, just try not to let it get to you too much. Life's too short!
Sep 9, 2009, 10:24 am
#22
Join Date: Jan 2006
Location: San Francisco Bay Area
Programs: DL Silver, UA Silver, Marriott Lifetime Silver, IHG Plat, Hilton Silver
Posts: 5,695
I have noticed this sort of "behavior" on all my cards, and I am a customer similar to the OP who pays in full, has an excellent credit score, etc. Since I don't carry a balance, I just remain thankful for any credit I have and that I earn enough to pay what I owe.
Sep 9, 2009, 10:46 am
#23
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,579
Sep 9, 2009, 10:48 am
#24
Join Date: Apr 2007
Location: PVD
Programs: CO Platinum, DL Gold, Former US CP Since They Invented It
Posts: 1,346
Thanks to the government's new "consumer friendly" credit card rules - which gave the banks 6 months to plot their revenge on the consumer - the card companies have ALL been upping interest rates, slashing credit limits (sometimes to less than the balance on the card), raising fees and doing whatever they can to get new rules in place before the new rules.
I have one friend who was approved for an AMEX Platinum, had it for 2 months, and AMEX summarily canceled it for no reason whatsoever. I know someone else who had a perfect payment record, yet their credit limit slashed from $28,000 to $9,450, which was $50 more than his balance at the time (as a result of monthly charges - he paid in full every month and charged a lot.)
There isn't enough money to go around right now with tight credit markets, giving the banks great latitude to squeeze their customers and try to self select the best customers so once the new rules go into effect their portfolios will be more profitable.
I have one friend who was approved for an AMEX Platinum, had it for 2 months, and AMEX summarily canceled it for no reason whatsoever. I know someone else who had a perfect payment record, yet their credit limit slashed from $28,000 to $9,450, which was $50 more than his balance at the time (as a result of monthly charges - he paid in full every month and charged a lot.)
There isn't enough money to go around right now with tight credit markets, giving the banks great latitude to squeeze their customers and try to self select the best customers so once the new rules go into effect their portfolios will be more profitable.
I have lots of real estate, 20-some mortgages...3 companies...and during the course of any given month, wonder "how am I, can I stay out of court?"
It's amazing how punitive and penalizing the system is right now...
Oddly, the government is rewarding bad/failed behavoir (with bail outs) while the people that played by the rules, did things right and were responsible are just being pounded into submission.
Its interesting...as successful as I was in 2005 and 2006...and to a degree, 2007...I'm giving it ALL back...and then some. My FICO has NEVER ventured below 770 or so...until recently. Its not in the 600s...but it's well below where it normally is. If you have ANY debt, no matter what type it is, you are gonna take a hit right now.
As it relates to an airline card...well, they ALWAYS carry the highest interest rates. However...if it comes down to survival...my best advice is to "never close one, you never know when you may need it for something...and 20% interest is better than not being able to eat."
At ANY point here...the government can stop helping me already...there's more than enough evidence that the mess Washington continues to create is making things worse and prolonging the agony...and this credit card mess is all the proof you need to know it's true.
Sep 9, 2009, 11:06 am
#25
Join Date: Apr 2007
Location: PVD
Programs: CO Platinum, DL Gold, Former US CP Since They Invented It
Posts: 1,346
And they've told me, point blank, "do not charge more than $5,000 on your Platinum AMEX, we'll cut it off."
And they've made good on that promise, EVERY month. I use to charge $10K to $18K a month...and of course, paid in full, ever time.
The card has basically become a high priced debit card.
That's the only account I have left...they cancelled the others on me.
Sep 9, 2009, 11:25 am
#26
Join Date: Jan 2004
Location: DCA
Programs: AA Executive Platinum
Posts: 2,085
Sep 9, 2009, 12:22 pm
#27
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,579
It's happened to me....
And they've told me, point blank, "do not charge more than $5,000 on your Platinum AMEX, we'll cut it off."
And they've made good on that promise, EVERY month. I use to charge $10K to $18K a month...and of course, paid in full, ever time.
The card has basically become a high priced debit card.
That's the only account I have left...they cancelled the others on me.
And they've told me, point blank, "do not charge more than $5,000 on your Platinum AMEX, we'll cut it off."
And they've made good on that promise, EVERY month. I use to charge $10K to $18K a month...and of course, paid in full, ever time.
The card has basically become a high priced debit card.
That's the only account I have left...they cancelled the others on me.
Sep 9, 2009, 12:29 pm
#28
Join Date: Apr 2005
Location: MBS/FNT/LAN
Programs: UA 1K, HH Gold, Mariott Gold
Posts: 9,630
Mar 04, 2009 -- American Express will pay you $300 to fire them!
The financial meltdown of 2008-2009 has surely had some bizarre moments. But there's one thing that has really made Americans sit up and take notice of the collective freakshow.
American Express is now sending out targeted letters to select customers -- they're not divulging how many customers -- offering them money to pay off thier balance and turn in their cards. In fact, people can earn $300 for firing AmEx!
The financial meltdown of 2008-2009 has surely had some bizarre moments. But there's one thing that has really made Americans sit up and take notice of the collective freakshow.
American Express is now sending out targeted letters to select customers -- they're not divulging how many customers -- offering them money to pay off thier balance and turn in their cards. In fact, people can earn $300 for firing AmEx!
- Aug 25, 2009 -- 24 million Americans have credit reduced for no reason
- May 07, 2009 -- Caller has credit card interest rate hiked to 64%!
- Dec 16, 2008 -- Banks punishing even good credit risks with decreased limits
- Dec 12, 2008 -- Avoid getting your credit cards reduced or shut down
Sep 9, 2009, 12:55 pm
#29
Join Date: Sep 2000
Location: DCA/IAD
Programs: AA EXP; 1W Emerald; HHonors Diamond; Marriott Gold; UA dirt
Posts: 7,819
Sep 9, 2009, 2:56 pm
#30
Join Date: Mar 2003
Location: Los Angeles, CA
Programs: UA 1K 1MMer & LT UC (when flying UA); Hyatt Credit Cardist; HHonors Diamond; Marriott Gold via UA 1K
Posts: 6,956
What I don't "get" is why the credit card companies are painting their customers into a corner where they are essentially ensuring themselves of never getting paid back? When you charge 30% interest, you are "forcing" a large segment of your customer base to default on their debt, since credit card debt is probably the "easiest" debt to default on, and probably the first debt which most people will default on if it comes to that.
Why can they not instead charge a reasonable interest rate, get paid back, and not have to settle for pennies on the dollar if the debt goes to collection? Let those of us who have been responsible credit card customers keep the generous lines of credit which we have EARNED by our good behavior.
I would think that the airlines would apply some pressure on the banks to keep credit lines and interest rates in check. They stand to lose alot of revenue of people close their airline credit cards and start using non-airline-branded cards. I think that people have been hoodwinked long enough by the airlines with their promises of "free flights," and now people are simply just going with the credit cards which will give them the lowest interest rate and the highest lines of credit. After all, they make the same choices when they fly.