Then you did the right thing cutting it up. Not everyone can handle credit cards, and for those folks the right number of cards to have is none!
A few years ago, when the retailers sued the credit card companies (Mastercard, Visa, Amex) and legislation was passed to change credit card fees, I heard that a new law would allow retailers to discriminate on the basis of interchange fees. As I understand it, the retailer pays a higher fee when a customer uses a rewards card than when a non-rewards card is used. So I heard that there was going to be a new law that would allow retailers to offer a discount for non-rewards card users, or a surcharge for rewards-card use.
Anyone hear this? Because my sole credit card is a mileage card, but I’m willing to obtain and use a non-rewards, no-fee card if it affects the price I pay.
I’ve heard that, but I think it’s also going to allow reduced price for using cash as opposed to ANY credit card. I’d wait and see how it actually ends up being implemented before making any changes.
No, I haven’t made any changes. But I understand the complaints of the retailers. They can lose about two percent of the transaction in fees.
True, but the merchants probably gain business compared to what they’d get if they only allowed cash/check/debit card transactions. And rewards cards aren’t just offered out of the goodness of the banks, they’re a tool the banks use in their competition with each other for the most profitable customers. It’s complicated!
I figure it’s like a chess game: the merchants have made a move, and we need to see what the banks respond with before making any decisions ourselves. One thin I am sure of is that good offers will always be out there for people with a good credit history and a decent income.
I have probably 15+ credit cards. Most of them were opened to take advantage of various sign up promos. Through various shenanigans I have netted over ten thousand dollars off of these credit cards in the last 2-3 years. I am a lightweight compared to what some are doing. For those that have good credit rating and understanding of the system there is quite a bit of money to be made off the banks. There is no real reason to close these cards and some small reasons to keep them open so I keep them around. If they have annual fees they get closed. Cards I actively use are just two and they get paid off monthly.
In regards to debit versus credit card another reason to use credit cards is because of the float. Depending on when in the month you make the purchase you get an extra ~20-50 days before you have to pay that bill. It is basically a short term 0% rate loan to you. Right now it is not all that valuable due to the rock bottom interest rates, but in the past this was a couple percent you could make off of it. Every bit helps when it comes to money.