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UCGal
ParticipantSince this thread has morphed to the AIG topic…
Interesting (depressing) article about the problems with AIG not being limited to the financial services side – but the insurance side is messed up too…I hope it’s not as f*d up as this article suggests.
ParticipantSince this thread has morphed to the AIG topic…
Interesting (depressing) article about the problems with AIG not being limited to the financial services side – but the insurance side is messed up too…I hope it’s not as f*d up as this article suggests.
Participant[quote=afx114][quote=UCGal]
It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.[/quote]I am aware that they make a merchant fee, but aparently it’s not enough because they just jacked my rate from 7% to 19.99% to no apparent reason. Then 2 weeks later they raised limit by 5k. Where is the logic in that? Do they think that if I lose my job I’ll be forced to max out my card — at which point I’ll owe them 20% — which I will pay for with the job that I just lost? I’m no accountant so maybe I have no idea what I’m talking about, but it sounds like they’re throwing shit everywhere to see what sticks.[/quote]
I hope that’s not the trend. I have 2 cards, use one infrequently and use the other often… pay them off in full each statement. I really don’t care what the rates are since I pay it off (and therefore never pay interest.) But the limits might inpact… there are months I have pretty high charges.
Participant[quote=afx114][quote=UCGal]
It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.[/quote]I am aware that they make a merchant fee, but aparently it’s not enough because they just jacked my rate from 7% to 19.99% to no apparent reason. Then 2 weeks later they raised limit by 5k. Where is the logic in that? Do they think that if I lose my job I’ll be forced to max out my card — at which point I’ll owe them 20% — which I will pay for with the job that I just lost? I’m no accountant so maybe I have no idea what I’m talking about, but it sounds like they’re throwing shit everywhere to see what sticks.[/quote]
I hope that’s not the trend. I have 2 cards, use one infrequently and use the other often… pay them off in full each statement. I really don’t care what the rates are since I pay it off (and therefore never pay interest.) But the limits might inpact… there are months I have pretty high charges.
Participant[quote=afx114][quote=UCGal]
It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.[/quote]I am aware that they make a merchant fee, but aparently it’s not enough because they just jacked my rate from 7% to 19.99% to no apparent reason. Then 2 weeks later they raised limit by 5k. Where is the logic in that? Do they think that if I lose my job I’ll be forced to max out my card — at which point I’ll owe them 20% — which I will pay for with the job that I just lost? I’m no accountant so maybe I have no idea what I’m talking about, but it sounds like they’re throwing shit everywhere to see what sticks.[/quote]
I hope that’s not the trend. I have 2 cards, use one infrequently and use the other often… pay them off in full each statement. I really don’t care what the rates are since I pay it off (and therefore never pay interest.) But the limits might inpact… there are months I have pretty high charges.
Participant[quote=afx114][quote=UCGal]
It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.[/quote]I am aware that they make a merchant fee, but aparently it’s not enough because they just jacked my rate from 7% to 19.99% to no apparent reason. Then 2 weeks later they raised limit by 5k. Where is the logic in that? Do they think that if I lose my job I’ll be forced to max out my card — at which point I’ll owe them 20% — which I will pay for with the job that I just lost? I’m no accountant so maybe I have no idea what I’m talking about, but it sounds like they’re throwing shit everywhere to see what sticks.[/quote]
I hope that’s not the trend. I have 2 cards, use one infrequently and use the other often… pay them off in full each statement. I really don’t care what the rates are since I pay it off (and therefore never pay interest.) But the limits might inpact… there are months I have pretty high charges.
Participant[quote=afx114][quote=UCGal]
It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.[/quote]I am aware that they make a merchant fee, but aparently it’s not enough because they just jacked my rate from 7% to 19.99% to no apparent reason. Then 2 weeks later they raised limit by 5k. Where is the logic in that? Do they think that if I lose my job I’ll be forced to max out my card — at which point I’ll owe them 20% — which I will pay for with the job that I just lost? I’m no accountant so maybe I have no idea what I’m talking about, but it sounds like they’re throwing shit everywhere to see what sticks.[/quote]
I hope that’s not the trend. I have 2 cards, use one infrequently and use the other often… pay them off in full each statement. I really don’t care what the rates are since I pay it off (and therefore never pay interest.) But the limits might inpact… there are months I have pretty high charges.
Participant[quote=afx114]I use my card frequently but pay it off every month and never carry a balance, so the company makes no money from me. When it comes to credit card companies, the best customers are the worst customers to their bottom line.[/quote]
I agree they aren’t getting the interest from people like you and me, who pay in full each month. But they still get the percent they charge the merchant.It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.
Participant[quote=afx114]I use my card frequently but pay it off every month and never carry a balance, so the company makes no money from me. When it comes to credit card companies, the best customers are the worst customers to their bottom line.[/quote]
I agree they aren’t getting the interest from people like you and me, who pay in full each month. But they still get the percent they charge the merchant.It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.
Participant[quote=afx114]I use my card frequently but pay it off every month and never carry a balance, so the company makes no money from me. When it comes to credit card companies, the best customers are the worst customers to their bottom line.[/quote]
I agree they aren’t getting the interest from people like you and me, who pay in full each month. But they still get the percent they charge the merchant.It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.
Participant[quote=afx114]I use my card frequently but pay it off every month and never carry a balance, so the company makes no money from me. When it comes to credit card companies, the best customers are the worst customers to their bottom line.[/quote]
I agree they aren’t getting the interest from people like you and me, who pay in full each month. But they still get the percent they charge the merchant.It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.
Participant[quote=afx114]I use my card frequently but pay it off every month and never carry a balance, so the company makes no money from me. When it comes to credit card companies, the best customers are the worst customers to their bottom line.[/quote]
I agree they aren’t getting the interest from people like you and me, who pay in full each month. But they still get the percent they charge the merchant.It’s not as profitable to have customers that don’t carry a balance, but if those customers use the cards, they still make money… and there’s less risk.
Participant[quote=kewp][quote=paramount]From Cramer:
3. Enough of the hysteria: there will be no depression.
[/quote]Oh great, its a sure thing now.
And according to shadowstats, we’ve been in a recession since December 05.
I have to admit, it sure doesn’t feel like one. Things are slowing down a bit in the city, but businesses still seem pretty busy.
Is the worst yet to come?[/quote]
I think how it feels depends on your circumstances. One of my grandfathers made his fortune during the depression. The other saw his ivy league education get thrown away because he graduated in 1930… no jobs.
If you have a job you probably don’t feel it. If you’ve recently lost your job, you know how few jobs there are out there.
My husband’s an architect, recently laid off. Look at the aiasandiego.com website for their classifieds… Typically there would be dozens of job ads. Now there is an office sublet and someone selling drafting tables and printers. It’s grim if you’re unemployed.
Participant[quote=kewp][quote=paramount]From Cramer:
3. Enough of the hysteria: there will be no depression.
[/quote]Oh great, its a sure thing now.
And according to shadowstats, we’ve been in a recession since December 05.
I have to admit, it sure doesn’t feel like one. Things are slowing down a bit in the city, but businesses still seem pretty busy.
Is the worst yet to come?[/quote]
I think how it feels depends on your circumstances. One of my grandfathers made his fortune during the depression. The other saw his ivy league education get thrown away because he graduated in 1930… no jobs.
If you have a job you probably don’t feel it. If you’ve recently lost your job, you know how few jobs there are out there.
My husband’s an architect, recently laid off. Look at the aiasandiego.com website for their classifieds… Typically there would be dozens of job ads. Now there is an office sublet and someone selling drafting tables and printers. It’s grim if you’re unemployed.
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