Today’s the day. Today, the most heinous bank practices with regard to credit cards are outlawed. So, what are the big banks doing? NYT coverage.
Today’s the day. Today, the most heinous bank practices with regard to credit cards are outlawed. So, what are the big banks doing?
They are looking for ways to replace the “easy income” they earned off the backs of vulnerable consumers by looking to more profitable consumers to start paying more.
On Saturday, the New York Times ran an article on “lenders [who] are betting they can cover some of the difference by luring rewards programs users to pay more for perks once subsidized by weaker borrowers.” That would include “moneyed users of rewards programs who spend big and pay their bills on time.” (another article focuses on foreign conversion fees.)
I’m hardly “moneyed” but I admit to paying for virtually everything with a credit card (including the occasionally $3 latte at Starbucks) so I can get every last reward point—and then paying in full at the end of the month. We have over 300,000 in miles now though, so a simple rebate or cash back card is starting to look much more appealing than banking miles.
One offer that looked alluring: a whoppin’ annual fee of $375 that included usage of airport lounges. For frequent flyers, that might be a good deal. (Hubby is already considering that one).