Totally OT Drive By!

[nailshooter41]

You guys are reading something into this that isn't there. Leon is the kind of guys credit card companies hate. The price match program isn't for him , and they resent the fact that he uses it. I did a stint working for a ba nk working on all types of residential construction loans so I was required to take all kinds of classes on credit vehicles and applications. Serious ly, the term in the industry for brother Leon is a "deadbeat" because the m ake NO money from him. No interest, no annual fees, no cash advance intere st, no transfer fees, nothing. Worse, they have to pay him under the agree ment with the card of reference! Hence, since theypay money out without re ceiving anything from him, "deadbeat".

According to NerdWallet, Bloomberg, and a couple of others, the CC debt for the average household is over $16K! According to Bankrate.com, the average low interest card is at an APR of a little over 13%, but the average cash back/points back/rewards card is 17.68%. I used this calculator (which is also used by banks to check numbers) to get some idea of what that means to the consumer.

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Using a 16K balance, a 17.68% APR, a 4% required payment, the calculator sh ows that there will be $25K paid out at the minimum payment to pay off the principal and interest! Depending on their method, the front end interest on the monthly payment of $640 is about $230 per payment. YMMV, depending on the calculator. I have a Citibank that has no annual fee, a points syste m, etc., different crap I don't use or want, and the interest payment (acco rding to them) using those parameters is closer to $325 a month.

Regardless, look at the income average for the CC companies. Add in annual fees for many, add in late fees for many, fees from cash advances, fees fr om balance transfers, etc., and you have to wonder how much CC companies ma ke per user a month on average. With all costs, fees, interest and anythin g else that can be added, I'll bet it is around $350 a month.

So really, does anyone think they care about price matching and sending Leo n a credit? The CC companies are plucking so many chickens that they don't even notice him.

On the other hand, thanks a lot, Leon. Since you are a deadbeat, every oth er chicken is being plucked so you can have a free feather pillow!

Robert

[-MIKE-]

Using a 16K balance, a 17.68% APR, a 4% required payment, the

We're pretty much in the same boat. My wife absolutely despises debt and we went through a lot of work and stress to get to the point where we have no accumulating CC debt or much of any other besides the mortgage.

Even when we buy a (always used) vehicle, we put as big a down payment on it as we can and she puts every extra cent towards it until it's paid off early.

We have stellar credit scores so we always get the lowest loan/credit rates and we have CC companies always sending us great offers with minuscule interest rates and free balance transfers, etc, etc. And I don't get it, because we are total "deadbeats."

I use one CC for business expenses and I let the CC company do all my bookkeeping for me, for free! They are paying me to do my record keeping for me and that's fine by me.

Unlike Obamacare, this is one area of expenses where everyone else is paying for my free stuff instead of the other way around. :-)

[Markem]

On top of all that he owns his house ::gasp::

[Puckdropper]

" [e-mail]" wrote in news: [e-mail]:

What about the merchant fees? Every time he uses his card, they get a small piece of the pie. It seems the average rate is 3%.

One more thought: Leon's happy, he's talking about his card. Others are saying "I'd like to get me some of that action." There's no guarantee they'll be "deadbeat" customers as well. Happy Leon=more sales. (I won't even mention the F-word.)

Puckdropper

[Leon]

LOL

[krw]

The "deadbeat" thing is way overrated. They're still making a ton of money off you, and with practically zero risk. That's a pretty good business to be in and others will compete to get your business.

No, you're paying though would be paying even if you didn't use the CC (because the CC cost is baked into the price). That doesn't change the decision, however.

[krw]

I have three more payments. ;-)

[Leon]

That is the way I see it. You should see how much I received in credits from the GM credit card program when I bought a truck and a vehicle for my son, way back in 1997 and 2005. That card offered 5% credit on every purchase towards the purchase of a GM vehicle. $5K+

[Leon]

I am on my negative 246th payment. ;~) Enjoy the freedom.

[John Grossbohlin]

I guess I'm a "deadbeat" too... and happy about it! LOL

I don't feel bad at all as the CC companies are wracking up pretty hefty merchant fees from my utilization. As such they are generating an income stream from me.

[dpb]

Not reading into it at all, but am curious why the CC company is doing the searching; particularly if they "resent him using" the rebate program. That's just more $$ out of their pocket they didn't need to lose...

As noted in a further response, they make their fee on every purchase and most of the ilk of Leon make pretty sizable use of them so that adds up (not to 20% APR, no, but 3% or so I think is pretty typical; AmEx raised to now almost 5% was what the building supply manager here told me was why dropped them.

[Unquestionably Confused]

Let's hear it for the "deadbeats" I am proud to be one. I pay annual fees on just two credit cards (AMEX and American Airlines Platinum tied in to my FF account). AMEX is now an affinity card with Starwood Hotels (and now Marriott) and time share resorts. Between those two cards I pay off in full ~ $6000/mo. On AMEX I have enough points in Starwood to spend ~ 60 nights free, plus I get upgrades when available. On the AA card between purchases and flights I currently have ~ 190K miles or, roughly, 7 round trip tickets. We fly enough that the free checked baggage alone puts me $100 ahead of the game at the end of the year. The priority boarding is also a nice perk.The rest is gravy.

Should they decide this "deadbeat" is no longer worthy of their card, that's okay. With a FICO hovering around 830, I'm sure I can find somebody who'll grant me short term credit. ;)

That 2½% to 5% merchant fee they're collecting is not bad considering it's essentially no risk to them. Those folks, in this economy, who are carrying $16K or more in credit card debt represent a significant risk to the card issuer.

[krw]

Now SWMBO wants to move. :-(

[krw]

Exactly. If they get one or two percent from me, per month, with essentially zero risk, they should be pretty damn happy.

I just don't understand why anyone, such as yourself, with excellent credit, would pay for a credit card. There are *so* many good, free, ones around. I'm sure you have your reasons but I don't get it.

[Leon]

Ironically when I visit the CC company and review my spending for the month the CC company actually marks certain purchases as possibly being eligible for a price match. With that marker there is a link to add the item to a list of items to be watched. You can either hunt for them and send in the documentation of let them do the looking. That is what happened on this GPS/Radio on the second credit.

[-MIKE-]

If you're talking about the 3% merchant fee, that's a net zero sum, however, because everyone pays that through the retailers soaking it into their prices. Even cash buyers pay it so it's a moot point in this discussion.

I really doubt there'd be many credit cards companies in business if everyone paid their balance in full every month and all they made was 3% fees.

[-MIKE-]

My friend did that with a Ford card in the early 90s and ended up getting about $8k off a new car (after all bargaining and other discounts). Ford soon after added a cap to the discount.

[krw]

True, which is why I said "though would be paying even if you didn't use the CC".

Banks do pretty well with the merchant's fees on debit cards. Hell,

3% amounts to a 43% return. 1% is still 14%. Not too shabby when they pay less than 1% on savings.

[dpb]

On 05/13/2017 8:31 PM, Leon wrote: ...

Yeah, it's all a bunch o' 'bots in the background...that part I grok.

I don't have accounts online so wasn't thinking of that interaction for the listing check box. Somebody will eventually wake up to the fact that once they've paid a match on a given item they've fulfilled their obligation and will close that loophole in the code... :)

Now figure out a way to phake the matching data! :)

[Leon]

Absolutely. And I'm sure that price matching feature is considered a cost of doing business.

This is not really a new feature. I have heard of this benefit for many years maybe a decade or so. But! I never realized how easy it would be to take advantage of. When the CC company lists your monthly charges and actually points out possible eligible purchases it is even easier than I thought. The hard part is scanning a copy of the receipt and emailing the copy.

Anyway, my card also offers limited time protection against merchants that will not take back and credit a purchase, up to $500. IIRC.

And IIRC. There is limited protection against breaking a purchase.

Naaa, I don't want to fraud the CC company.