Providian's Participation Fee?

Discussion in 'Credit Talk' started by Voyager, Sep 21, 2001.

  1. Voyager

    Voyager Well-Known Member

    Is it possible that a credit card company can charge a fee if you don't use their card enough?

    According to my sister, who is good friends with a Texas-Arlington supervisor, Providian may have a fee in the works for customers who don't charge enough.

    Is it possible they could get away with this?
  2. marci

    marci Well-Known Member

    There are companies that charge fees for participation if the card isn't used regularly. I think Fleet is one of them.

    Providian can get away with it as long as people agree to the terms. As for me, I no longer "need" them for my credit and will not give them any more of my money...
  3. breeze

    breeze Well-Known Member

    Right! I can move my (tiny) balance to another card. But they have some people trapped, believe me, and they can do as they please with those folks.
  4. RichGuy

    RichGuy Well-Known Member

    Exactly as Breeze says. They have some people trapped.

    One of their traps is credit line increases. They raise your limits to tempt you to charge more than you can pay off. Then you can't escape the high APR and annual fee.

    Sure, it's nice to get limit increases from Providian, but you shouldn't use them. You should let them sit there to improve your utuilization ratio.
  5. breeze

    breeze Well-Known Member

    Yup - $7,000 limit - $100 balance (soon to be zero) when I asked for a rate reduction, they said, "But we gave you line increases" I said "yes, and if I use it I'll get into trouble, no thanks, I want the rate decrease." Well they gave me another line increase, LOL.

    DMB has my balance. They deserve it!! high limits, low rates. And I have my Citi card standing by if DMB starts playing games. If all else fails, I'll just pay it all off and quit worrying about games, LOL.

Share This Page