Christian Financial Forums

[KrozFan]

Found an article today about how the time of free perks for customers that don't carry a balance may be over. By not being able to charge as much anymore to people that carry a balance due to new regulations, the credit card companies may be introducing annual fees for everyone, and getting rid of interest free grace periods. Not sure how much of it was theory or what will actually happen but it was interesting.

Credit Card Industry Aims to Profit From Sterling Payers

[pochax]

Found an article today about how the time of free perks for customers that don't carry a balance may be over. By not being able to charge as much anymore to people that carry a balance due to new regulations, the credit card companies may be introducing annual fees for everyone, and getting rid of interest free grace periods. Not sure how much of it was theory or what will actually happen but it was interesting.

Credit Card Industry Aims to Profit From Sterling Payers

well, it was nice while it lasted!

[4jacks]

Found an article today about how the time of free perks for customers that don't carry a balance may be over. By not being able to charge as much anymore to people that carry a balance due to new regulations, the credit card companies may be introducing annual fees for everyone, and getting rid of interest free grace periods. Not sure how much of it was theory or what will actually happen but it was interesting.

Credit Card Industry Aims to Profit From Sterling Payers

Yeah Dave Ramsey was already getting calls from people with one card, I forget which, they all got notices that they could get a monthly or yearly fee (i forget which) or close thier account.

Which is a good reason not to transfer large balances to a credit card, ever. even at a promotional rate, they can change it.

[matt]

Found an article today about how the time of free perks for customers that don't carry a balance may be over. By not being able to charge as much anymore to people that carry a balance due to new regulations, the credit card companies may be introducing annual fees for everyone, and getting rid of interest free grace periods. Not sure how much of it was theory or what will actually happen but it was interesting.

Credit Card Industry Aims to Profit From Sterling Payers

If any of this happens then I won't have a problem waving goodbye to my credit card. I only use it because it has a few small advantages, if those go away so will the reasons for using it.

[tony34]

As long as CC firms don't charge annual fee, I am still fine with using it. Using the CC still provides interest-free loan for short term + avoids the hassle of carrying cash in your pocket.

[jeepzy3]

I hope not, but i noticed one of my gas reward cards reduced rewards from 5% to 3% and you have to accummulate $25 before getting your reward now - previously you got a credit monthly.

[milneepp]

I really don't see them taking away the perks. - they really want people ot have the cards and to spend spend spend

[Clarinda Della]

Best Single Card
Because most people spend quite a bit on gas, groceries, and drugs (i.e. "EDP" (Every Day Purchases)) and there are several cards that offer 5%+ on EDP, usually a card that offers a 5%+ on EDP and 1%+ on non-EDP will be the single best card. Examples of such cards are the Driver's Edge (6% on EDP for the first year), AmEx Blue Cash (5% on EDP after $6500 YTD spending), and Citi Diamond Preferred Rewards (basically 5% (in ThankYou points) on EDP for first year).
Two-Card Strategy
For someone who's willing to manage two cards, usually the best card to supplement the 5%+ EDP card will be a card that pays 1.5%+ on *all purchases*. The best I know of is the new 2% Cash Back card from Orchard Bank. However, Orchard Bank may or may not offer you the card without an annual fee. If you get an offer with an annual fee, it will likely be either $39 or $59. Also, most people only get up to a $2K credit limit on the 2% Cash Back card, though I have heard of people getting their limit increased a little over $2K. I suppose if you're willing to make payments more frequently than monthly, then the credit limit isn't a limiting factor. The next best card after the Orchard Bank 2% Cash Back card is the 1.5% card from Fidelity.

[pochax]

Two-Card Strategy

I use a two-card strategy(?): Amex Blue Cash for Every-Day Purchases (as noted, 5% back on groceries, gas, drugstores - 1.25% on everything else). CitiForward Visa (5 points for every dollar spent on movies, dvds, books, restaurants (including fast food), 1 point for most other things). So basically, depending on what i am spending on, that determines which card i use:
Gas, groceries, drugstores - Amex Blue Cash (5% cash back)
Bookstores (including ANYTHING Amazon.com because Citi categorizes it as a bookstore), Movie theaters, DVDs/music stores, restaurants (including fast food) - CitiForward (5 points per dollar which is like getting 5% back depending on how you use the ThankYou points)
Everything else - Amex Blue (1.25% cash back) as long as they take Amex.

And now with Bing.com, if i am buying online, i can get additional cash back by purchasing through their search website (2-10% cash back).

CAVEATS:
1) DON'T BUY SOMETHING JUST TO GET REWARDS. Only buy it if you NEED IT ANYWAYS. Otherwise, you will spend more money than you need to.
2) Pay off your CC balance EVERY MONTH so as to NOT ACCRUE ANY INTEREST. If you don't pay off the balance, all your rewards are dwarfed by the interest you pay.

[tony34]

I've reading quite a lot about the end of rewards but so far, have seen many cc offers w/ high paying rewards. For eg, Chase was offering $250 for opening its Sapphire card - a few weeks back (although they recently reduced the payout). I still like credit cards even if they had no rewards b/c I don't need to carry cash + of the warranty extension and other benefits.

[pochax]

For eg, Chase was offering $250 for opening its Sapphire card - a few weeks back (although they recently reduced the payout).

watch out Tony....i think Chase Sapphire requires an annual fee (and a hefty one at that - i got the same offer in the mail the other day). i do NOT recommend getting ANY rewards CC card that has an annual fee...it usually more than kills the marginal benefit of the reward you get.

[rubyq]

Yes, with Sapphire card, you need to watch out for the high annual fee.

[P31woman]

I have never paid interest, late fee or an annual fee for my cards. In fact they have paid me pretty well over the years to use them.

Now that they have me hooked on what is great about their cards they are saying in effect, "IF you want to continue to use our service it is going to cost you $30.00 per year".

I chewed it over and believe $30.00 is a very fair price for them to charge me for this service.

[matt]

The sapphire card has an annual fee? Hmm, I was recently notified that my chase freedom card was being 'upgraded' to a sapphire card. I didn't see anything about an annual fee but I didn't look over the info very closely...

According to the "Card pricing and terms" link on the bottom of http://www.chasesapphire.com/ there is no annual fee for the regular sapphire card. For the chase sapphire preferred (preferred by whom?) card there is a $95 annual fee that's waived for the first year.