Ask me about working for a credit card company - Page 3

lancev99 · #21 01-03-2007, 10:48 PM

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How much give and take is there with APRs? E.g., I had a card with a pretty good APR, but after three years it was going to change to a variable rate. I opted out, and therefore was unable to use the card anymore. I kind of wanted to, so called and tried to get a set rate on a balance transfer, even if it were a tad higher. Both first tier and second tier employee I spoke with said there was no way to negotiate it. True? It didn't make much sense to me, I mean, they're getting nothing out of me now.

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Usually the APR's are set. "THE COMPUTER"(it's the best way I can describe the program we use) tracks different things. If the option is there for the APR it's there. If it's not, sorry. Sometimes you can write into an address and they will lower the rate. Each company has that.
One thing you can do is just transfer the balance's off of one card to another company. Get the best possible deal. If they say no rate, go to another company and apply for a new card, see what you can get.

scraggs · #22 01-04-2007, 05:34 AM

you generally have to call up and ask to cancel your card. this scares them enough to send you over to the retention department where you can get some great deals and usually, at the very least a nice APR reduction.

BigBadBabar · #23 01-04-2007, 05:39 AM

why, if i want to pay over the phone, do i get charged a fee? so basically i am paying a fee for the privilege of paying the bill.

ceczar · #24 01-04-2007, 11:29 AM

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i pay my balance every month in full. so i don't pay any fees or intereest. do credit card companies hate customers like me?

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Yes and No. Yes, they make 0% on you. No, because you are a "valued" customer. Usually have a higher credit score, are likely to choose/more likely to choose that bank if you need a home loan or car loan. So they still want your business. We actually like those people more than the people that are late all the time with horrible credit.Adds more risk to the bank.

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it is not true that they make 0% on you. every time you make a purchase with the card, the bank that issued your card takes 1.5% or so (not sure what the standard interchange fee is now). that's more than enough to cover the cost of carry for the month. they don't make as much off you as they do from the people who carry large balances, but they still make money, especially if you spend a lot on the card.

belgianbeerlover · #25 01-04-2007, 01:04 PM

My wife had some school debt that I consolidated on a 0% balance transfer deal. We hoped to have it paid off sooner, but I just keep getting 0% balance transfer offers, that I just can't resist. I have shuffled the debt around for 3 years without paying 1 penny of interest. How long can this go on for? I realize they must make money on the 0% offers, otherwise they wouldn't offer them. I'm just surprised they don't catch on.

lancev99 · #26 01-04-2007, 01:55 PM

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why, if i want to pay over the phone, do i get charged a fee? so basically i am paying a fee for the privilege of paying the bill.

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More way to make money. It's designed, at least at my company, to make you use the internet site. It's cheaper than having to run an automated system with a VRU. It's also to pay for customer service to keep MOST of it in the US instead of of India. At least that is what I was told by my company.

lancev99 · #27 01-04-2007, 01:57 PM

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i pay my balance every month in full. so i don't pay any fees or intereest. do credit card companies hate customers like me?

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Yes and No. Yes, they make 0% on you. No, because you are a "valued" customer. Usually have a higher credit score, are likely to choose/more likely to choose that bank if you need a home loan or car loan. So they still want your business. We actually like those people more than the people that are late all the time with horrible credit.Adds more risk to the bank.

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it is not true that they make 0% on you. every time you make a purchase with the card, the bank that issued your card takes 1.5% or so (not sure what the standard interchange fee is now). that's more than enough to cover the cost of carry for the month. they don't make as much off you as they do from the people who carry large balances, but they still make money, especially if you spend a lot on the card.

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That fee usually helps pay for the license fee for VISA or MasterCard. 1.5% of transaction is nothing as compared to interest those. It's a break even measure at that point

lancev99 · #28 01-04-2007, 02:01 PM

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My wife had some school debt that I consolidated on a 0% balance transfer deal. We hoped to have it paid off sooner, but I just keep getting 0% balance transfer offers, that I just can't resist. I have shuffled the debt around for 3 years without paying 1 penny of interest. How long can this go on for? I realize they must make money on the 0% offers, otherwise they wouldn't offer them. I'm just surprised they don't catch on.

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For as long as you have good credit. People will want your business, they will hope you are late and will lose the 0%. They will want to have your assest with the Bank. If you have good enough credit for a 0%, and keep it like that, you can play the game for ever more than likely.

KilgoreTrout · #29 01-04-2007, 03:08 PM

How much money does your firm piss away in direct mail marketing? I get about a dozen offers per week in my mailbox, and I shread them all.

lancev99 · #30 01-04-2007, 04:09 PM

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How much money does your firm piss away in direct mail marketing? I get about a dozen offers per week in my mailbox, and I shread them all.

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Not as much as you might think. We use private companies for it. I would guess at over $5 million as year ( and I'm sure thats LOW) I really have no firm idea though.