Ever get dumped by Credit Card company for paying in full every month?

Discussion in 'After Hours Lounge (Off Topic)' started by Ryan Wishton, Nov 20, 2004.

  1. Ryan Wishton

    Ryan Wishton Screenwriter

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    Well, it's no big surprise Credit Card companies love people who keep a balance. I mean if no one had a balance, the companies wouldnt be in business.

    Seems those who pay off their balance in full every month are the enemy.

    The question is have you ever been dumped by your credit card company for paying in full monthly?

    I know two people this has happened too. They got a letter about how their business wasnt needed any longer or something like that.

    This doesnt affect your credit in a negative way, does it?

    Does it show up as they dumped you (which doesnt look good) on your credit report?
     
  2. Doug R

    Doug R Supporting Actor

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    I too pay my balance every month but I haven't been dumped, however my previous card carrier "claimed" my payment didn't reach them in time when in fact I know it did. The payment was coincidentally the highest my balance had ever been with the card. They refused to wipe the charges so I dropped them.

    But to answer your question, I've never heard of that before but agree, balance payers are definitely their enemy [​IMG]
     
  3. shaniceMW

    shaniceMW Stunt Coordinator

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    it shows that you have a closed account no matter who closed it. the negative is the fact that you have less available credit which is negative on your credit report. unless however it is an account that does not have a long history. if it was an account with a long history, it's negative. if you have more than three revolving accounts, and the account is not long then it could be a good thing. it just depends...
     
  4. Jason GT

    Jason GT Second Unit

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    I've never heard of this.

    Ryan, what card company was this? Regardless if you're carrying a balance or not, the CC company gets a cut of any purchase made with the card.
     
  5. Brian Johnson

    Brian Johnson Supporting Actor

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    I wish I could pay off my credit card in one swooping payment.
    $3k is hard to come up with at one time.
    I've since learned I have a problem with credit cards but I still "need" them. I only have one, but it gets used.
    What isn't helping is that my bank has increased my limit several times without me asking for it.
    I realize my $3k is low to some people, but for a poor white guy it's a lot.
     
  6. Eric Samonte

    Eric Samonte Screenwriter

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    Yes, I believe for every purchase u make, they get like at least 0.5 or 1% Visa nd Mastercard. Most stores don't like Discover because they charge a whopping 2-3%. So its kind of unlikely for them to drop anyone unless u r not using them.
    I think the best way to increase ur credit rating is to pay off ur balance every month not to mention ur credit limit. I've been doing that and right now, I can pay for a nice E320 with my CC outright....not that u can.....but its a nice way of illustrating how good one's credit could be.
     
  7. RobertMc

    RobertMc Agent

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    Eric

    Ever get spooked about what kind of charges could get run up on your card in the event your wallet goes missing? Just thinking of your sanity - but I'm not sure I would be comfortable in the knowledge that I had enough credit to get me into some deeeeeeeep sh*t.

    I used to have a really big limit, but after a while using cards and running my finances, I now know how much limit I need and have set it appropriately. Keeps me from worrying too much and if an emergency arises, I know that my credit history is good enough to go and ask for an increase from the company.

    FWIW, I haven't ever heard of a major bank or credit card company in Australia dumping a customer, unless they didn't use the card and didn't have any balance owing. I think if you keep a card 'dormant' for too long, they will shut it down.
     
  8. Glenn Overholt

    Glenn Overholt Producer

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    If you want to pay it all off every month, I think that American Express has a card for that.

    But what if you paid everything off except for like $5.00? Is there a minimum charge every month?

    Glenn
     
  9. Malcolm R

    Malcolm R Executive Producer

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    Yes, I have heard of CC's dumping customers who pay in full every month. You're not a profitable customer, so their resources are better spent trying to find another customer who will carry a monthly balance.


    Yes, most cards have a minimum finance charge of 50 cents or $1. Not to mention that the second you charge something new, additional finances start to accrue. The only way to get that 25 day grace period is to start with a clean zero balance each month. If you have any balance at all, you start building finance charges from the day you charge any new items.
     
  10. Win Joy Jr

    Win Joy Jr Stunt Coordinator

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    Well, I have had enough with AMEX, CITI and Bank of America, I will tell them "You're Fired" in the next 10 days...

    I am keeping Bank One - Disney for the points, and the NASA FCU Visa. We are also closing Bank of America Checking, savings and investment accounts. Everything is being moved to the NASA FCU...
     
  11. Mark Philp

    Mark Philp Second Unit

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    Most financial experts recommend that you do not close a bunch of credit cards all at once. It can cause your credit score to drop and could even cause the cards you keep to raise your interest rates. The idea is that the banks think your're having financial problems and you're now a worse risk so up goes that rate. They say the best thing to do is simply no longer use the cards and let the accounts sit dormant. If you don't want the temptation then cut up the cards so you can't use them. Should you really want to close your accounts spread it out over six or eight months between closing each one.
     
  12. Scott Merryfield

    Scott Merryfield Executive Producer

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    I have always paid my balance in full every month for 20+ years now, and have never had a card cancelled. I know that I'm not the company's best customer because I do not pay their outrageous interest charges, but they still get a transaction fee from the retailer for every purchase made. As for using AMEX, why pay a $50+ annual fee for something that I can get for free from VISA or MC?


    As Malcolm mentioned, as long as the lost/stolen card is reported promptly, you will not be held liable for any charges that you did not make.
     
  13. Todd Hochard

    Todd Hochard Cinematographer

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    Too high of a limit, even with zero balance (or always paid balance on an active card), can be a bad thing. I was told that my FICO was 10-20 points lower than it could be, because I have (had) too much open available credit (on just 3 cards) as compared to my income (and I am considered a "high net worth" individual). My FICO is quite high, anyway, so I really couldn't care, but nonetheless, that's what the sheet said.

    Todd
     
  14. Eric Samonte

    Eric Samonte Screenwriter

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    Robert....not really spooked by it. In fact my CC compaby is so paranoid that anything I buy out of the ordinary, they contact me to verify. They r so good at that....besides I'm in their "class of clients" where I'm protected for free and would not be liable for such things.
    That said I hope I never do have to get myself into something where someone else has my card. As a matter of fact, I don't carry that one around too much. I only use it for big ticket items so it stays at home most of the time.
     
  15. Robert_Gaither

    Robert_Gaither Screenwriter

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    It happened to me when I picked up a secure Master Card (I was trying to rebuild my credit), everytime I purchased something the next availible postal day a check was sent to cover the payment and if I knew I was going to make a payment in the future I would intentionally put extra money on the card before the transaction (the secured card actually had a higher return interest than my savings account of the time so long as they had money they were paying me). I was cancelled after 8 months but it was no big deal since my bank set me up with a Visa logo card that I do direct debit with to me which is far superior. I will never charge for anything in the future if I can help it.
     
  16. SarahG

    SarahG Second Unit

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    Credit card companies def prefer the people who keep balances, but I can't believe they would dump someone for paying in full every month. Seems almost immoral in a way. Our society always talks about the stigma of debt and the problems it causes and the credit card companies are essentially punishing the people who are resonsible. weird.
     
  17. Michael Warner

    Michael Warner Supporting Actor

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    The industry term for those who pay their credit card bills in full every month is "deadbeats." Go figure.
     

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