Well, yes.
You’ll forgive my disapproving stare.
Credit card companies make about 67% of their income from interest. Only about 21% from interchange (what merchants pay) and about 11% from fees (with the bulk of this coming from late and balance transfer fees).
AmEx probably makes a higher percentage on interchange because it’s so high but they aren’t losing a whole lot by not charging fees.
Also, you were probably dinged for not having enough credit history or using too high a percentage of your current cards (what they meant by not enough available credit).
Okay, I’ll try again now that I have $0 spent on both my cards. Thanks.
I got it! I used my permanent address and combined my mom’s income with my own, because hey, they asked for “Household income.” Kek.
Nothing like a little light fraud to grease the wheels of debt accumulation. Geez…
What? They asked for “household” income, not “my” income. My permanent address is still my parents’. I can’t use a college or law school address because one is no longer valid, and the other I have no history at. Also, I’ve had a credit card for three years now and have never been in debt.
There’s probably a specific legal definition of “household income.” In Minnesota, for example, it’s “Household income for homeowners is the total income (taxable and non-taxable) of all persons who live in a household except for boarders, renters, dependents and your parents or your spouse’s parents,” according to a quick Google search.
Not that this is a particularly OMG SERIOUS form of fraud, but just in the interest of clarification.
That definition defines the term for a primary wage-owner, though, whose parents would all be like, retired. My parents are still the primary wage owners, and I’m not a tax dependent, so hey, I’m addin’.
Yay, free Puzzle Quest thanks to my new Amazon.com Visa ^^.
Is it fraud if there’s no way for them to check it? :)
Congrats, btw. Enjoy your new Amazon.com Visa from Chase.
An American Express that doubles as a Costco Card
Also cash back:
3% Restaurants
2% Airfare
1% Everything else
They don’t do anything that won’t make them money overall, not that makes money on every single customer. That doesn’t mean that smart people (of which there are relatively few) can’t take advantage of programs offered to make money off stupid people.
If they pay a smart person 5% in rewards (say $100 a year), all it takes is 3 stupid people to each forget to make one monthly payment on time at $40 each to come out ahead.
Also: Creditors/retailers aren’t infallible. Sometimes they make mistakes. Not that I think the rewards programs are mistakes, but hey.
Yes, yes, everyone here is too smart to fall for blah blah…
Sales per statement are about 60% higher for cards with rewards, compared with rewards-less cards. The primary reason is because people will want to use their card instead of a debit card/cash to make everyday purchase. Once you’re used to using the card for purchases, you’ll also use it for big-spend purchases.
(But yes, about 70% of people end up carrying a balance so I imagine that most people spend more than they would if they didn’t have a card.)
Also, most reward programs give 1-1.5% back, which is less than the interchange they receive on sales.
Can anyone recommend a credit card for me? I don’t need a large limit. Thanks!
- $2k or $1k limit is fine.
- No annual fee please.
- Would prefer a lower rate over gimmicks like cash-back, though it’s not necessary.
Citi Double Cash. 2% back on all purchases.
Oh wow! Didn’t think to check there.
The Wirecutter really branched out. They have articles on everything from menstrual cups to waffle makers now.
I’m guessing people don’t use those two things together. Or if they do, I would bet Gwyneth Paltrow makes the best ones.
I wonder if they are branded under her main company name if so. Goop menstrual cups just doesn’t have a good marketing kind of zing to it.
Menstrual waffles don’t sound delicious.