Credit Cards Closing Accounts

[jpinpb]

I thought too many credit cards is essentially exposing your potential credit liability and you don’t want to have that too high.

[macromaniac]

You are also correct that if you have too many lines and available credit that it will hit your scores. There is a delicate balance and a formula for all of this though….a lot of it is common sense if you think through things that make you a risk.

[macromaniac]

You are also correct that if you have too many lines and available credit that it will hit your scores. There is a delicate balance and a formula for all of this though….a lot of it is common sense if you think through things that make you a risk.

[macromaniac]

You are also correct that if you have too many lines and available credit that it will hit your scores. There is a delicate balance and a formula for all of this though….a lot of it is common sense if you think through things that make you a risk.

[macromaniac]

You are also correct that if you have too many lines and available credit that it will hit your scores. There is a delicate balance and a formula for all of this though….a lot of it is common sense if you think through things that make you a risk.

[macromaniac]

You are also correct that if you have too many lines and available credit that it will hit your scores. There is a delicate balance and a formula for all of this though….a lot of it is common sense if you think through things that make you a risk.

[davelj]

[quote=nostradamus]All credit card co’s charge the vendor a percentage of sales. Even for people who pay off the balance, they ARE making money. You’re just not paying it, the places you shop are. Amex charges the most (which is why some places don’t like to accept it). I like Amex because they’ve always backed me up in disputes with vendors, and they went after some people who tried to defraud me.[/quote]

That’s not exactly correct. The merchant fee in the case of Visa and Mastercard goes to Visa and Mastercard (the companies themselves), not the the credit card issuer (e.g., Chase, Wells Fargo, etc.). Visa and Mastercard – the companies – don’t underwrite credit. They’re soley processors. The bank – which underwrites the risk – only gets the interest and penalties. American Express, on the other hand, makes money both from the merchant fees AND from interest and penalties. So, AmEx is like Visa/Mastercard/Bank all rolled up into one. I don’t know how Discovery operates, but I suspect it’s like AmEx.

[davelj]

[quote=nostradamus]All credit card co’s charge the vendor a percentage of sales. Even for people who pay off the balance, they ARE making money. You’re just not paying it, the places you shop are. Amex charges the most (which is why some places don’t like to accept it). I like Amex because they’ve always backed me up in disputes with vendors, and they went after some people who tried to defraud me.[/quote]

That’s not exactly correct. The merchant fee in the case of Visa and Mastercard goes to Visa and Mastercard (the companies themselves), not the the credit card issuer (e.g., Chase, Wells Fargo, etc.). Visa and Mastercard – the companies – don’t underwrite credit. They’re soley processors. The bank – which underwrites the risk – only gets the interest and penalties. American Express, on the other hand, makes money both from the merchant fees AND from interest and penalties. So, AmEx is like Visa/Mastercard/Bank all rolled up into one. I don’t know how Discovery operates, but I suspect it’s like AmEx.

[davelj]

[quote=nostradamus]All credit card co’s charge the vendor a percentage of sales. Even for people who pay off the balance, they ARE making money. You’re just not paying it, the places you shop are. Amex charges the most (which is why some places don’t like to accept it). I like Amex because they’ve always backed me up in disputes with vendors, and they went after some people who tried to defraud me.[/quote]

That’s not exactly correct. The merchant fee in the case of Visa and Mastercard goes to Visa and Mastercard (the companies themselves), not the the credit card issuer (e.g., Chase, Wells Fargo, etc.). Visa and Mastercard – the companies – don’t underwrite credit. They’re soley processors. The bank – which underwrites the risk – only gets the interest and penalties. American Express, on the other hand, makes money both from the merchant fees AND from interest and penalties. So, AmEx is like Visa/Mastercard/Bank all rolled up into one. I don’t know how Discovery operates, but I suspect it’s like AmEx.

[davelj]

[quote=nostradamus]All credit card co’s charge the vendor a percentage of sales. Even for people who pay off the balance, they ARE making money. You’re just not paying it, the places you shop are. Amex charges the most (which is why some places don’t like to accept it). I like Amex because they’ve always backed me up in disputes with vendors, and they went after some people who tried to defraud me.[/quote]

That’s not exactly correct. The merchant fee in the case of Visa and Mastercard goes to Visa and Mastercard (the companies themselves), not the the credit card issuer (e.g., Chase, Wells Fargo, etc.). Visa and Mastercard – the companies – don’t underwrite credit. They’re soley processors. The bank – which underwrites the risk – only gets the interest and penalties. American Express, on the other hand, makes money both from the merchant fees AND from interest and penalties. So, AmEx is like Visa/Mastercard/Bank all rolled up into one. I don’t know how Discovery operates, but I suspect it’s like AmEx.

[davelj]

[quote=nostradamus]All credit card co’s charge the vendor a percentage of sales. Even for people who pay off the balance, they ARE making money. You’re just not paying it, the places you shop are. Amex charges the most (which is why some places don’t like to accept it). I like Amex because they’ve always backed me up in disputes with vendors, and they went after some people who tried to defraud me.[/quote]

That’s not exactly correct. The merchant fee in the case of Visa and Mastercard goes to Visa and Mastercard (the companies themselves), not the the credit card issuer (e.g., Chase, Wells Fargo, etc.). Visa and Mastercard – the companies – don’t underwrite credit. They’re soley processors. The bank – which underwrites the risk – only gets the interest and penalties. American Express, on the other hand, makes money both from the merchant fees AND from interest and penalties. So, AmEx is like Visa/Mastercard/Bank all rolled up into one. I don’t know how Discovery operates, but I suspect it’s like AmEx.

[patb]

i have a credit card i never used, it was a Platinum VISA
i had from IEEE, it used to be MBNA but somebody bought them.
It was no fee, so i kept it, it had an 18K credit line, they cancelled
it out of the blue, i called up, went around the bush with a
account rep and got it reactivated, to 9K. He asked why
i had it if i wasn’t using it, i told him, some day i was going to
walk out of the subway and someone would be selling their
Lexus for 2K and i’d want the credit around in case, i was a few
days away from getting my paycheck.

Yeah, banks are limiting exposure, i think they figure there
won’t be TARP for credit card paper and they are seeing people
who never went bad on credit using it now.

I personally hate credit cards, i think they are the spawn of the
devil.

[patb]

i have a credit card i never used, it was a Platinum VISA
i had from IEEE, it used to be MBNA but somebody bought them.
It was no fee, so i kept it, it had an 18K credit line, they cancelled
it out of the blue, i called up, went around the bush with a
account rep and got it reactivated, to 9K. He asked why
i had it if i wasn’t using it, i told him, some day i was going to
walk out of the subway and someone would be selling their
Lexus for 2K and i’d want the credit around in case, i was a few
days away from getting my paycheck.

Yeah, banks are limiting exposure, i think they figure there
won’t be TARP for credit card paper and they are seeing people
who never went bad on credit using it now.

I personally hate credit cards, i think they are the spawn of the
devil.

[patb]

i have a credit card i never used, it was a Platinum VISA
i had from IEEE, it used to be MBNA but somebody bought them.
It was no fee, so i kept it, it had an 18K credit line, they cancelled
it out of the blue, i called up, went around the bush with a
account rep and got it reactivated, to 9K. He asked why
i had it if i wasn’t using it, i told him, some day i was going to
walk out of the subway and someone would be selling their
Lexus for 2K and i’d want the credit around in case, i was a few
days away from getting my paycheck.

Yeah, banks are limiting exposure, i think they figure there
won’t be TARP for credit card paper and they are seeing people
who never went bad on credit using it now.

I personally hate credit cards, i think they are the spawn of the
devil.

[patb]

i have a credit card i never used, it was a Platinum VISA
i had from IEEE, it used to be MBNA but somebody bought them.
It was no fee, so i kept it, it had an 18K credit line, they cancelled
it out of the blue, i called up, went around the bush with a
account rep and got it reactivated, to 9K. He asked why
i had it if i wasn’t using it, i told him, some day i was going to
walk out of the subway and someone would be selling their
Lexus for 2K and i’d want the credit around in case, i was a few
days away from getting my paycheck.

Yeah, banks are limiting exposure, i think they figure there
won’t be TARP for credit card paper and they are seeing people
who never went bad on credit using it now.

I personally hate credit cards, i think they are the spawn of the
devil.

[Author]

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