Tuesday, May 19, 2009

The NYT says today that by paying off my credit card bills every month I'm considered a deadbeat -

The NYT fronts a look at how banks will now be looking at ways they can make more money from some of their best customers. Well, "best customers" might be how you commonly think of the people who pay their bills in full and on time every month, but they're actually called "deadbeats" in the industry because they don't generate much revenue for the companies. These customers have not only failed to give much revenue to the poor credit card companies, but they dared to demand things like cash-back rewards and frequent-flier miles. That may soon be a thing of the past. Now that Congress wants to impose limits on how much the companies can charge riskier borrowers, they're looking at how they can increase revenue from those with good credit. Banks are likely to bring back annual fees, cut back reward programs, and charge interest immediately upon a purchase. Or at least that's what banks want people to believe as they furiously lobby lawmakers, who are discussing a wide variety of rules that could soon be imposed on card companies. "Those that manage their credit well will in some degree subsidize those that have credit problems," said the head of the American Bankers Association.

(Source: Slate Magazine)

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