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June 11, 2009


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I don't really care about my interest rate or credit limit. Anyone tried calling Chase and ask them not to change their freedom rewards or they're leaving (not exactly an idle threat from what I've been reading)? On one hand, its probably not as simple for them to change around rewards as they do an interest rate but, on the other, this is something currently existing and people have been phased out of this a little at a time, so I don't see how its not feasible to just not phase out some people at all.

One thing I have always found intriguing is the connundrum, or hypocritical nature of credit card enthusiasts.

They say to never carry a balance, but instead enjoy the "perks" like convience, rewards, etc but pay off the balance every moneth to avoid interest charges.

But if people actually never carried a balance, those "perks" would dissappear. Because the profits would dissappear, or be greatly reduced.

So actually, if you are a fan of credit cards, shouldn't you be encouraging others to "rack it up." For it is those people who allow the perks for the remainder?

And an interesting point was brought up. Philisophical issues. Not philosophical as in "I don't like them, I have an aversion to debt" or other personal philosophys, but consider the "greater philosophy"

The benefits of credit cards only exist because most users don't benefit from them.

I just increased my credit limit on my Amex card from $2,000 to $5,000 without even having to talk to anyone. I made a request online that took literally 1 minute, and now my credit utilization ratio for that card is cut in half.

Now I have a high enough limit to buy a new Macbook Pro and get the extended warranty coverage Amex offers. WIN. Needless to say I have the cash to buy it and have planned the purchase months in advance.

More often than not, there are three parties behind your credit card.
1 the bank that issued the card
2 the card company- visa etc
3 a third party who sits between the vendor and the bank. This is the person on the hook should you have any disputes about charges. I thought this party was very interesting when I learned about it. They get some of the transaction fee and they get to hold massive balances owed for a day or two. Very profitable unless he gets hit with major fraud.

People who benefits from credit cards are people who can afford to pay for their monthly bills. For those who carry a balance it is one hell of a ride with all those late payment and interest fees. The best thing one should do is to stick to paying with cash and try to create a savings account as emergency funds and not rely to credit cards in times of need.

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