Credit Cards: Screwing The Conscienscious, Reliable Payer

WHAT YOU DIDN'T READ ABOUT S.235 and H.R.627:

Sure, there have been changes proposed to the credit card industry.

But what you likely didn't hear is this (from the NYTimes):

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

It is estimated that the average American credit card debt is $10,000. My credit card debt: $0. I pay off my card every month. I've done this for almost 30 years. I've worked long and hard to establish my credit rating of 830. As of this writing, my one credit card has a limit of $58,000.

But that result didn't come without a price itself; I "did without" many things for many years because I held to this tenet: if I couldn't pay it off in one month -- I either didn't make the purchase or, rarely, I applied for a small loan from my credit union. I established a pattern of paying off small loans rapidly. I worked overtime or other jobs in order to accomplish this. The amounts my lender made available to me gradually increased to the point where, with sterling credit, the real purchasing power -- when absolutely necessary -- lay with me and not the store, dealership or business.

How will the screwing of conscientious card users be accomplished? To continue:

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

People who routinely pay off their credit card balances have been enjoying the equivalent of a free ride, he said, because many have not had to pay an annual fee even as they collect points for air travel and other perks.

“Despite all the terrible things that have been said, you’re making out like a bandit,” he said. “That’s a third of credit card customers, 50 million people who have gotten a great deal.”

So you've done without, you've sacrificed, you've handled your credit like an adult, eh?

BOHICA, Reliable American Consumer.

Thank you, Mr Obama. Thank you, federal government.

BZ