Not surprising
September 14, 2009 | alternatives, industry | Comments (0)Credit card companies want more business from people with great credit. From today’s New York Times:
Continuing a pattern that has held for more than a year, credit card issuers last quarter mailed out fewer new-card offers than they did in the quarter before. But 28 percent more offers were sent to consumers with the best credit for two lines of so-called premium cards. About 118 million pieces of mail went out advertising the MasterCard World and Visa Signature cards, premium cards that come with fees and extra services. That was up from 75 million the quarter before, according to Comperemedia, a firm that tracks direct marketing.
End of “rewards”
June 24, 2009 | alternatives, industry | Comments (0)Interesting guest column in the New York Times regarding the recently passed credit card bill of rights:
To be sure, the new law will require some sacrifices. Our data indicate that rewards programs, for example, may become less generous or less common. But is this necessarily a bad thing? While you may be reluctant to sacrifice your airline miles, rewards programs are anything but free for the nation as a whole. Debt-laden and often low-income borrowers tend to pay high fees to subsidize the vacations of those who manage to pay on time.
Credit union cards demonstrate that punishing fees are not an essential ingredient of profitable lending. This should help assuage fears that the credit card act will bring disaster for credit cards. Rather, it should nudge them toward the gentler credit union model that many Americans already enjoy.
But banks are not credit unions; they pay taxes for one thing. But the Payday Pundit is not a credit card expert so you can decide for yourself whether these authors have a point.
