Re: First USA/United I don't think you can get a rate any higher!! Isn't it already at something like 17 or 18%?? If your parents charged a ton on the card - let's sat $3000 per month -- then the bank made: Interbank Fee (merchant pays - 2% on average, split 50/50 with merchant bank & issuing bank) -- $30/month x 12 months = $360/year Annual fee $60 Gross Yearly Income for Bank = $420 The bank then pays United for the miles awarded - industry stanard "interchange" (between partners) is estimated between $.009 and $.012 per mile ($324 - $432 per year) I'm not sure how much they make by renting lists, but that's got to count for something - as well as the ability to cross-sell, etc etc etc. So the bank still makes something- I can't seem to bring a tear to my eye for poor FUSA. Now, when you figure out how much they make off of the folks who revolve... you start to get the picture of how FUSA is BankOne's most profitable unit- the one that they will grow the company with! -mj
I had read on another board that having "closed by credit grantor" was terrible on your credit report. I hope your right though for their sakes. I had suggested to them before to occasionally carry over a small balance but they literally charged EVERYTHING attempting to earn airline miles. As soon as they carryover a small balance they pay interest immediately on all thier new puchases. Of course, in retrospect it would have been worth giving up a few hundred miles for a month or two just so they would keep the card open. I don't think the thought ever crossed their minds that they would close the account because it was being paid in full. This has been some time ago so I doubt that they could call and ask for the card to be re-opened. I wish I had found this board sooner. Besides, if it did hurt their credit it must have been minimal. They certainly have no problem getting and and all credit they want at the very best terms.
I have had my Discover platinum card for just over two months now. I haven't gotten any letters in the mail stating that my apr will be increasing, maybe because my account is still new. I am curious to know how long you all have had the Discover Platinum card in order to be recieving the increase in apr letter in the mail. An above post states that some card companies will close your account if you never carry a balance with them? I don't think this is legal at all is it? I can see if you don't use a card for many years, and even after that, most banks will still keep your account open, but for not carrying a balance, thats wild. If anyone has any information on this please let me know.
I had my card since July '00. I had balances on it, almost 5000 at some point, but it was during the first 6 months, with 0% APR. After that I paid them/transferred them, so basically they didn't get a penny from me in interest. If you read the fine prints on your contract, it says they can close the account whenever they feel like it. You can do that too... so it's not unfair. The unfair part is that it gets reported as "closed by creditor" which is supposed to be a bad spot on your report, although I don't know why... if the account is in good standing.
Im guessing that they would let one know before they (card company) were going to close the account. By doing this, this would give the consumer the option on whether or not to accept the terms or cancel the account themselves if they chose to. They wouldn't close the account and let you after the fact would they, Im sure this would be considered unfair.
