What's in YOUR wallet? Get rid of it!

[Atman]

Have you received one of the pre-approved Capital One offers in the mail? I got one last fall, with 0% interest until this May. So, I used it all winter, strictly for snowboarding trips and lift tickets, and kept it paid off. I used it for a few things this spring and had a balance of a couple hundred dollars when I got my June bill. I was about to pay it online when I saw the line at the bottom of the statement...I was no longer under the 0% deal...they had set my rate, despite my good record with them, at 28%! TWENTY-EIGHT PERCENT! I called them and bitched, and they offered nothing but a "thank you for selecting Capital One." So I immediately deselected the, closed my account and mailed back my cut-up card. The net result for them? They made no money off me. There was no sign-up fee, no annual fee, 0% interest for 6 months. So the only money they made off of me was actually from the merchants I charged lift ticktets with.

Beware...some of those Viking dudes are actually Capital One employees in disguise!

[distantearlywarning]

1. The same thing happened to me.

Except it was a Providian card. No late payments, no other credit problems, and yet they raised their rate to 28% and didn't inform me (it was in the fine print in the brochure they sent me in the beginning). I was pretty shocked.

I paid off that balance in full this month and will not be using that credit card again in the future. The other one will be paid off in two months and then that's it for credit cards. This whole bankruptcy bill thing combined with the sneaky way they raised my rates just pissed me off beyond belief. It's cash for us from now on because I'm not giving any more of my hard earned money to the evil bloodsuckers.

[unblock]

6. providian is the bottom of the barrel

they're well known in the industry for, um, incompetence that always seems to work out to their advantage....

[ArkDem]

2. You didn't read the terms before you accepted? Why was this a

surprise?

[distantearlywarning]

7. I took the consequences like an adult.

I didn't call them up and scream at them. I didn't blame them for my lack of reading terms in the beginning. I just paid off my balance.

Nevertheless, they obviously went to some effort to hide it from me. It was hard to find in their brochure. This is not exactly upfront, moral behavior. In fact, I would go so far as to say that they were actively attempting to be deceptive.

My lack of reading terms doesn't excuse their poor behavior in any way. Maybe if we stopped worrying so much about blaming the victim in this country we would all have more time to work on the assholes working hard to cheat people out there (like the credit card companies).

[Atman]

11. Thank you, Mr. Holier Than Thou

You were able to read so much into my post that isn't there, you obviously are better and smarter than the rest of us.

[distantearlywarning]

13. Did you mean to reply to me?

I was actually talking to ArkDem. I didn't think you did anything wrong at all, and certainly didn't mean to imply that I thought I handled the situation better than you did. I was agreeing with you. The credit card companies are scuzzy, and their practices are dishonest.

[Atman]

17. My apologies, then.

I thought you were directing that response at me. It seemed a bit condescending given the way I actually handled the matter!

Again, no harm, no foul. Sorry. I pretty much agree with your post, though; the tone just seemed out of place.

[distantearlywarning]

18. Same here.

No problem, and you have my sympathy. If the tone seemed out of place it's because I thought ArkDem was condescending and it pissed me off a little bit. I think you did the right thing.

[natrat]

48. he is condescending

[Atman]

9. The fine print, as I recall, stated the interest rate would be determined

later, and could be from XX to XX percent. I figured with a good history with them, I'd be fine. I have another card with a "mere" 15%, so what did CO find that the other issuer didn't? Doesn't matter any more...I'm done with Capital One.

[fob]

42. That's where you went wrong. Paying off the balance each month

and not racking up any late fees does not a GOOD customer make in their eyes. You were a low risk low/no return customer and as such they made no money off you so your rate goes to the highest possible so when you do wash your next payment in the laundry and have to send it in late, ZINGGGGG!, CO makes some moola. If you had just ran up a couple thousand dollar balance and paid the minimum each month, you would have been REWARDED with a 7.9% APR! Lucky you!

Anyway, good move, use their money for a month and make em eat it.

[ProfessorGAC]

44. That's Not True

I'm on the board of directors of a bank that has it's own Visa Cards.

It's absolutely not true that paying off a credit card decreases the value of a consumer's credit level. In fact, since what the OP does is what i've been doing for over 20 years, i continually get offers to up my limit or LOWER my rate, to get me to let it ride. I don't do it, but having the Credit Score go higher and higher because the balance is always zero and delinquency doesn't exist is a sure way to get them to offer you more money and lower interest.

Banks bend over backward to avoid delinquenies. The regulators look at that ratio VERY carefully and accepting too many bad loans (which is how regulators look at credit card balances in arrears) is very bad for business. Not only does it have a direct affect on the bank's bottom line, but it keeps the regulators looking. That's time consuming and a pain in the neck for the loan departments. Better to have a the maximum number of high value debt customers, and live with the cash flow from the interchange fee to the vendors than to run up high charge-offs.

I'm not defending the predatory practices of some credit card firms, but you don't get better rates by running up unpaid balances, even if you're paying the minumum to stay current. Banks have no added profit in people running up balances they ultimately can't pay. Bad business, that.
The Professor

[fob]

45. My scenario was mostly tongue-in-cheek but I do know that the

CC industry has a name for people who pay their balance off each month and don't generate late fees and it's escaping me right now but it's along the lines of "deadbeat".

[damntexdem]

29. Such 'terms' are hidden in fine print and difficult-to-understand language

Even economic experts often cannot decipher what the actual terms are. This is why it's important to constantly monitor one's bills. The intent of the companies is to slip provisions past consumers that those consumers would never agree to if they knew they were present.

[ArkDem]

36. If you say so. I've never had a problem but I will say that

english is my first language.

[natrat]

3. credit card companies are incredibly scummy

my girlfriends electronic payments out of her regular bank account all went smoothly to pay bills with the exception of the payments to Capital One. What do ya know they want to raise the percentage from 6 to 29 on her 18,000 dollar bill. Isn't there something in the bible about not lending at outrageous rates?

[ArkDem]

47. I think there is something in Genesis about having an

18K credit card balance.

[MadHound]

4. Why even bother in the first place?

I've never had a CC, and frankly never want one. Usurous interest rates, insane sorts of fees, and you're opening yourself wide open for ID theft. Why, if you're paying the card off every month, go through such a hassle?

I've just never seen the allure or neccessity for a CC, and the more I watch the horror shows surrounding these cards, the happier I am I don't have one.

[terrya]

8. You can get a debit ATM card that works the same as a CC.

Without the hideous interest rates.

[Atman]

10. They ARE a necessity

Renting a car is damn near impossible without one. If you use a debit card, you PAY the full security up front. Cash out of your bank account. When you return the car, they'll re-deposit your security, but often not until 5-7 days later.

You may never rent cars or have the need to, but there ARE valid uses for credit cards.

[ima_sinnic]

14. I rent cars from Enterprise with a $100 cash deposit (in the form of

a money order) that is returned within only a few days by a check in the mail. I have also used a debit card and the deposit was also returned very quickly. I can't think of anything else that CCs MIGHT be necessary for.

[Atman]

22. I love Enterprise

Once you build up a rapor with them, you really can get great deals. The branch managers have lots of leeway in what to charge you. But that only seems to work when I use Enterprise locally. Distant branch locations seem to treat me just like any other customer they don't know, and that is a hassle. Money orders are not a reasonable solution if you are renting a car at a distant location. In fact, having to get a money order at all is a pain. And as another poster pointed out, it isn't just cars. You can't rent at a decent hotel without one. We apparently live very different lifestyles. More power to you if you can live without one.

My wife and I lived a cash-only lifestyle for nearly 5 years after we had some major financial difficulties a while back. While it was liberating in some ways, we found we were constantly compromising ourselves and rationalizing that "we didn't need to go there anyway" type stuff. Love 'em or hate 'em, credit cards to afford a certain amount of "freedom," as ironic as that might sound. As long as you're ready/willing/able to keep them current. It is the people with $20,000 on their cards that baffle me. How do you get to that point without saying "WHOA! Waitaminute!" Of course, it is often because of being forced to CHARGE emergency medical services, which now can send you directly to the poorhouse without any recourse, thanks to the lobbying of these asshole companies and the spineless weasels we laughingly call "Democrats" who voted for them.

[Streetdoc270]

34. my Visa/Debit card works wonders

I have all the power of a CC for hotel/car rental/airplane and none of the hassle of bills, interest rates, or ID theft to worry about.

[MadHound]

15. I've never needed a CC to rent a car

I've either used a smaller rental agency, or simply written the deposit check, which is given back to me when I'm done. I've traveled all over this country, and abroad, and never found the need. Yes, you can sometimes run into small hassles, but those are rare and easily dealt with, especially if you're willing to make a bit of a fuss.

Sorry, but I just don't buy the notion that somebody NEEDS a CC. People like them for the convience, but how convient is it for your personal info to be sold to some spamming company, and stolen and massive charges being racked up in your name? Both of these scenarios are occurring with increasing frequency, and will continue to do so as long as people keep on charging everything.

[movie_girl99]

16. how do you function without one

you need one to rent a car, get a hotel room etc...

[MadHound]

19. Cash friend, cash works wonders

When it comes to car rentals, if they won't except something else besides a CC, I take my business elsewhere. Most places, upon prodding, will take a check for deposit. And I keep seeing these posts stating that I need a CC for getting a hotel room, well that's horseshit! I've traveled back and forth across this country, stayed in many hotels nationwide, and never, ever needed a CC. Pulling out a wad of cash, or a checkbook generally does the trick.

How do you function WITH a CC? Paying extra money just for the privelge of spending money:eyes: Or having to worry about interest rates going up, or your ID being stolen. Thanks, but no, I already have enough to keep me awake at night.

Cut up your cards, and life will be much more stress free.

[movie_girl99]

21. we had to rent a room a few weeks ago

even though i was going to pay cash for the room they told me that I had to give a CC. I offered to pay for the room up front and the girl at the desk said that they had to have a CC on file in case there were calls made or anything was taken out of the mini bar or any damage was done to the room. She said it was policy to have a CC on file. I had a wad of cash but it didn't do me any good. How do you make plane reservations without one?

[MadHound]

25. Really, that's interesting

What chain(if a chain it was)was that. If people start pulling that BS with me, I start making a fuss and pull the lawbooks out on them. Get the manager involved, and they cave.

As far as flying goes, I pay with a check ahead of time. I've rarely flown commercial, overseas, and haven't had the need to fly since 911, so who knows what the new requirements will put me through.

But it has always seemed that with a little prodding, cash on the barrelhead will always persuade the most reluctant.

[movie_girl99]

27. It was The Magnolia Hotel in Dallas

not sure what chain they are affiliated with. I guess ill have to press more next time.

[Atman]

39. Your post speaks volumes!

First, a lot of us simply don't like to "start making a fuss." It taints our vacations, and more importantly, right off the bat, you're marked as a pain-in-the-ass guest. I've worked at hotels in my youth, and believe me, if you think bitching gets you BETTER service, you're nuts. The management may bend over backward to stop you from writing a letter to corporate, but it is the hourly-wage employee who will be the one bringing your towels (clean, I hope!), changing your sheets (well, maybe), delivering your room-service. I find pissing them all off before I've even reached my room is generally counter-productive.

And, since you haven't flown since 9/11, you really aren't in a position to say not having is "no problem."

Most don't have access to private planes, dude. Cash isn't always king anymore. Eventually, it will be for black-market purposes only. Microsoft is working on it.

[MadHound]

46. LOL friend, I have no access to a private plane friend

The only time I fly is when I'm going out of the country, or have the opportunity to recreationally fly. Anywhere here in the US, I'll drive to, I enjoy it much more, for you can see much more of the country by driving, especially if you go the back roads. If I'm going to need a credit card to fly out of the country like you say I will, then I'll simply drive across a border and hop out of Mexico or Canada. But somehow I doubt I'll have a problem.

And while I realize that we're inexorably approaching the point of a cashless society, I am doing all I can to stave it off. For once we go cashless, then everything you purchase, every activity you do is going to become part of the record. Yeah, yeah, I know that tired old canard, if you don't have anything to hide, yada yada yada. Doesn't work as an arguement for the Patriot Act, doesn't work as an arguement for a cashless society.


Oh heaven forbid that I'm marked as a pain in the ass guest. Horrors abound. I guess I shouldn't make a fuss about anything, anywhere, anytime, just suck it up, whatever crap they give you, eh? Geez friend, I guess it isn't just the Democratic "leadership" that has lost their spine, eh?

Actually, I've rarely had to make a fuss over paying cash. I can really only think of one time in the past ten years where I was initially turned down by a desk clerk, and after calmly speaking with the manager, I had no problem. And I've worked a hotel or two in my youth also, and quite frankly I know that what happens at the front desk rarely makes it to the grunt level, ie the maids, bellhops, etc.

Look, if you wish to continue to use CCs, fine with me. It's your ID that you're putting out there, and it is your email account they'll be spamming, and it is your money that is going towards fees and interest rates. If you wish to play credit card roulette, go right ahead. I merely stating that I've never used one, needed one, or wanted one. Yes, that makes me an odd duck, but hey, I'm an odd duck with an excellent credit rating, and very very little chance of ID theft. Cheers!

[newportdadde]

38. Cash back -

I get 1% cash back on everything. Then I get an extra 5% back for groceries, medicine prescriptions, gas etc. Better then discover which doesn't start in at the full 1% till you have spent something like 5k with them and never does only at big box stores etc(only .25%).


So far I've gotten quite a bit back over 100.00 bucks, hell I even pay my water bill online/doctors visits etc and get 1% back from it.

EDIT: I pay the balance off every month.

[unblock]

5. i always call to make sure i know the EXACT day the teaser rate expires

and mark it in quicken to pay it all off right before that.
often they slyly say it expires "the billing cycle that includes march 1, 2006" or some such nonsense. OK, TELL ME WHAT DATE THAT MEANS. oh, february 12, 2006? great, i'll pay it off via internet february 11th. thanks for the interest-free loan!

after the teaser rate expires, of course, i always pay off in full, until they offer me another "deal" on a balance transfer or something, then i repeat the process.

personally, i don't care if the "normal" rate is 8%, 16%, or 24%, because i never accrue interest charges at those rates, my home equity line of credit is cheaper.

[jojo54]

12. Other things have to be looked out for too.

Hub and I have a Chase BankOne card. 6 yrs ago we took out a cash advance. What was in the fine print was, only 1% of our mthly payment went to pay off the advance and the interest rate was over 20% (only one digit int. rate on purchases). We couldn't even specify a certain portion of our payment for the advance. As it turns out, after several conversations with the CS reps, the advance would never be paid off as long as we had the card. We wound up transferring the entire balance to another card, just so we could get our from under that cash advance. What bullsh_t!

[supernova]

20. I strictly use debit cards now

where I have to use credit cards. I don't use CC's... ever. I don't want to get into the interest rate trap again.

I spend most of my money at Costco and that's by check. I don't even want their Amex card. I doubt I'd get approved anyway.

Meanwhile, I'll keep my $$ in the bank, thank you.

edit: I've never had a problem renting a car or booking and paying for a hotel room.

[Double T]

23. I'd rather have nothing, than something purchased with a credit card....

the banks and their credit card divisions are a bunch of loan shark scum bags that constantly change the rules and their interest rates.

[radwriter0555]

24. That's interesting. When I called to cancel, they offered me a no-fee 12%

rate to keep me as a customer.

SO I took it...

[Atman]

28. That is why I called.

This is what I always hear. "Just call them, they'll work with you." They didn't say boo to me except "thank you for being a Capital One customer. You'll receive a confirmation of your cancellation in the mail." Oh well. I would have gladly kept the card and paid a reasonable rate (reasonable for a CC) and they would have made money off me. It just seems like a silly business decision to me; now, they've made NOTHING, and provided me with a six-month interest-free loan.

[lse7581011]

26. Pay It Off Monthly

use their money for free for 30 days and get an organized bill at the end of the month!

[drdtroit]

30. That's the ticket!

I use my credit card to pay for EVERYTHING, utility bills, cable, groceries, gasoline, etc,
It's a Travel Rewards Card so I get all the points and pay the card off every month.
Also leaves me with a detailed record of transactions for tax time.

Using a CC takes a bit of discipline (but I'm lucky in that I was raised with a "depression era" mentality) and you don't use it unless you have the money to back up the charges.

Plus if you travel internationally a lot (as I do) you'll find you get the highest exchange rates by using a CC.

[progressivebydesign]

31. I am putting my money where my mouth is! I'm dumping them all..

We've decided to sell the house, downsize, and lose the credit cards. I will take particular pleasure in cancelling the ones that outsource jobs to India (and I will tell them so when I cancel). We are going for a cash lifestyle, keeping the least obnoxious card for emergencies. The rest are gone. Screw them and their default interest... Never late on a payment. NEVER on any account. Yet they find ways to suddenly change your interest if their review of your credit report every few months finds anything the computer doesn't like. Fuck 'em. They're all in bed with George Bush and the rest of them. We're getting poorer living on the rich people's money.

[slackmaster]

32. ZERO revolving credit-card debt here

Everything I owe is collateralized by my home.

I made almost $2,000 of purchases on my one and only active Visa card last month, just got the statement yesterday. I'll put a check in the mail for the full balance this afternoon.

[progressivebydesign]

33. We're going to do the same.

Selling the house now while it has some good equity.. downsizing and being cash buyers for things we need, or only charging if we can pay it off that month. Peace of mind.

I cannot exist without a credit card of some sort. Unless you have a really good savings account, they are great for emergencies and such. And for travel. BUT.. I won't keep enriching the rich by paying their interest rates. The average joe got screwed the day the republicans voted to remove tax breaks for credit cards.. that was the day that many people started the spiral downward.

[slackmaster]

35. Tax Reform Act of 1986

I remember it well. I was an analyst for a bank. A lot of people got caught with high credit card balances. I personally got hit because of a car loan. All consumer loan interest lost its deductibility long before I was able to pay mine off.

[Tracer]

37. Debit cards are quite convenient, but ...

... every time I use it, I get hit with a .35 charge.

Doesn't sound like much, but before you know it, it can really add up.

[Skidmore]

40. I'm down to one major credit card

which will be paid off in a couple of months. As I've paid off debt this past 3 years, I've canceled the accounts. I love it that when you call, they ask you to wait for an "associate" to speak with you. Walmarting the credit industry. Well, I speak with the associate and let her/him know that I have not changed my mind since I was transferred. Then I hang up and cut up the card.

[Deja Q]

41. That's their way of saying "f u for using our card the way we don't want u

to use our card".

They want people with big balances. And no bankruptcy protection laws, or did you know even the Bible has some small pity for people who go bankrupt? (and our elected offals of office who claim to be religious once again prove they aren't)

[Chicago Democrat]

43. Go with a Bank Card from your Bank you have a checking account

at.

I like Bank of America.