Is It True - Pay Interest From The Moment You Charge On A Credit Card?.......

[global1]

I heard this a.m. that one of the changes in order for the Credit Card companies to make money is to not offer the grace period and begin charging interest from the moment you charge something on a credit card. If that is true - that sucks.

[konnichi wa]

1. A guy on CNBC said if some start doing that, other issuing banks will

use the fact that they do -not- to attract customers away from the gougers. I can see that happening.

[dkf]

4. I wonder if those companies will want to take on that much

more new credit card exposure though.

[konnichi wa]

13. Well, I would imagine they'd have learned by now to be a little selective

about applications and limits...

[One_Life_To_Give]

15. Concider the credit rating of who this effects

We are talking about the people who consistently pay their bills in full and on time each month. The banks have always complained they don't make any money off them, but thats not really true. They get a couple percent of every transaction. Doubling the income already received from that group would take atleast a 24% APR.

[katandmoon]

6. No -- once one starts doing it, they will all start doing it.

[konnichi wa]

11. I think you're wrong...I for one would just switch to cash/checks and they lose me

as a customer (since I pay my cc bills every month anyway)

[katandmoon]

17. So would I and so do I. They won't miss customers like us because they don't make $$$ of us anyway.

[konnichi wa]

18. They would miss the merchant commissions though. If a few million people did what we would,

they would get the message, I'm pretty sure. :shrug:

[qazplm]

16. they start doing that

I wont use my card for anything but emergencies.

[Gormy Cuss]

9. Exactly what I predict will happen.

As I wrote on another thread, the 'best' customers killed annual fees that way. Why pay a fee if another vendor offers you a similar product without it?

[dkf]

2. Its how they are having people who aren't in trouble pay

for those who are. Someone has to pay for the defaults after all.

[One_Life_To_Give]

3. That would cost them alot of customers

The CC Companies already get a couple percent on everything that is charged when the purchase is made. Should they tak on immediate interest charges on all of the "Deadbeats" (people who pay entire balance in full every month) they will loose those sales as the deadbeats switch back to cash.

[dkf]

8. Congress needs to get rid of the lousy hold provisions on

debit cards. Otherwise banks are going to make a lot of money on overdrafts. I always thought that was the most crooked thing I've seen.

[global1]

10. I'm A Deadbeat I Guess.....

I use a credit card for convenience so as not to carry too much cash. I pay off the entire balance every month and don't incur interest or late fees. I am self employed and travel a lot to visit clients or travel on behalf of clients. As such I charge all my travel expenses on credit cards and get reimbursed for them by my clients.

If the credit card companies start to charge interest from the moment one charges - that will be devastating to many businesses as it will be a direct hit to them with a new interest charge.

I guess I will have to start altering my purchases on credit cards and use more - checks and cash.

Every action has an opposite and equal reaction. Looks like us deadbeats are going to take it in the shorts.

Does anybody know if it's too late to call our D.C. representatives and make sure that this aspect of the new credit card bill going through Congress right now doesn't get implemented?

[ClarkUSA]

5. I heard the same report. That's only what creditors are threatening to do if reform goes through.

[L0oniX]

7. Maybe they will also start adding yearly card fees too.

[able1]

12. That will jumpstart savings personal savings accts. - a good thing

Let 'em do it. Dept. stores etc. will then fight back by offering a better deal if you use their card.

[seabeckind]

14. I saw that teaser on MSNBC

I haven't been able to verify it -- but then I'm in relaxed mode.

The snooze people are talking about how Nancy's saying bad things about the CIA means torture is ok and we should give Cheney the Medal of Freedom. </sarcasm>

This, like the voted down provision last week on the usury cap, means that our congresscritters are once again letting the corporate interests write the bills. Then they get together on the boat on the Potomac and talk about what a great job they did for the common people.

I was very torn when they started talking about this credit reform. My first impression was "my god, please don't try to fix it, it'll just be worse". Sometimes first impressions are true. Those people don't care about red or blue politics, they care only about green -- and not the environmentalist greens either. Both my blue senators voted against the usury cap.

I guess this deadbeat will start doing cash and checks and give up the convenience of credit cards.