50% of Americans Couldn't Come Up with $2000

[Spexxvet]

Originally Posted by tw
First, one has a credit card, does not use it, and therefore has no monthly payments. FALSE
The argument is valid, but subjective.
I don't believe most of the 'on the edge' cannot have any credit cards.
A credit card that you have and do not use can cost nothing. FALSE
Anybody can afford a credit card by not using it. FALSE

Originally Posted by classicman

Many companies are canceling credit cards if they are not used and/or the credit rating of the consumer does not meet their standards.

I don't think either of your arguments is absolute. tw is right that those things can happen, and you're right that it's getting less likely to happen. To categorize his assertions as FALSE is Intellectually dishonest, IMHO.

[Stormieweather]

For probably the first time in my life, I could scrape together $2k right now. I would not have to use credit or sell anything or pay a bill late to do so.

I've spent the last decade (since a nasty divorce and subsequently losing my job) getting square again, financially. I work two jobs, make decent money, RENT a nice house and have no credit card debt. My only debt obligation is 1 car payment. It will be paid off in 2 years and I do not plan to ever finance a vehicle again.

My goal over the next 5 years is to re-establish my credit with carefully controlled credit card spending and save $25k for a down payment on a condo which I intend to finance for 15yrs. At the same time, I will be heavily saving and investing. Once the condo is paid off, I plan to retire.

But for 40 years, I was paycheck to paycheck and always teetering on the edge of financial ruin. Ok sometimes I was deep in the pit of ruin, but I survived somehow. Now I have to find a way to enjoy my retirement years.

Part of doing so involves getting healthy, because who the hell can afford major medical costs or wants to spend their retirement as an invalid? So I quit smoking, am losing weight, began eating organic and non-processed, and recently started running and lifting weights. I don't think I've ever been healthier.

Stormie

[classicman]

Originally Posted by Spexxvet

I don't think either of your arguments is absolute. tw is right that those things can happen, and you're right that it's getting less likely to happen.

It is a fact that card companies are canceling dormant or unused cards. They are not making any money on the card if it isn't used. They will extend that credit to someone else who will use it - that is how they make money. They can only extend so much credit and to have it "wasted" on someone who is not using it is not a fiscally sound business plan.

I too was unaware of this until about 2 years ago when a card I kept just for emergencies was canceled without notice.

Originally Posted by Spexxvet

To categorize his assertions as FALSE is Intellectually dishonest, IMHO.

Spreading misleading information and blatant falsehoods is intellectually dishonest. Your ire is also misdirected.

[Fair&Balanced]

Originally Posted by classicman

It is a fact that card companies are canceling dormant or unused cards. They are not making any money on the card if it isn't used. They will extend that credit to someone else who will use it - that is how they make money. They can only extend so much credit and to have it "wasted" on someone who is not using it is not a fiscally sound business plan....

...Spreading misleading information and blatant falsehoods is intellectually dishonest. Your ire is also misdirected.

The big three - Chase, Citi, BOA (who along with Amex represent more than half of all card isusers) - dont cancel dormant cards. Their policy is to provide a notice of pending cancellation unless the customers requests the card to remain active.

It is primarily Capitol One and a few small bank insurers that have a cancellation cause with no recourse.

So I would suggest that your statement is spreading misleading information to some degree.

[classicman]

My card was a Chase card and was canceled.

Again, I am speaking from personal experience. There is nothing misleading about facts, whether you like them or not.

[Fair&Balanced]

Originally Posted by classicman

My card was a Chase card and was canceled.

Again, I am speaking from personal experience. There is nothing misleading about facts, whether you like them or not.

Perhaps you just ignored the notice or had credit issues. I dont know the circumstances, I do know the policy. It is a risk management policy and a standard practice among the big three. Even more so since the passage of the CARD Act in 09 (no, the act does not address dormant cards, but it does reaffirm the overall risk management practices).

[Fair&Balanced]

First, one has a credit card, does not use it, and therefore has no monthly payments. FALSE
The argument is valid, but subjective.
I don't believe most of the 'on the edge' cannot have any credit cards.
A credit card that you have and do not use can cost nothing. FALSE
Anybody can afford a credit card by not using it. FALSE

None of the statements are FALSE on their own merit.

[Undertoad]

J works in the HQ of the card department at one of the banks mentioned, *specifically* in matters like these, and will settle this immediately when she gets home.

[BigV]

oh snap!

you just wait til momma gets home.

[Fair&Balanced]

Originally Posted by Undertoad

J works in the HQ of the card department at one of the banks mentioned, *specifically* in matters like these, and will settle this immediately when she gets home.

Battle of the banker babes?

My info is from my sis, who works at a pretty high level in the consumer/community affairs dept of one of the big three.

[infinite monkey]

This'll be good.



It's like someone telling me how financial aid works and what the regs are because something happened one time to them or to their friend's dog and that is how it works because that is how it works.

GO J!

disclaimer: I ain't on any side...I have no clue about any of it.

[Spexxvet]

I predict that the answer will be somewhere in the middle: they can do it, but don't always do it.

[infinite monkey]

sez Carnac the Magnificent.

[glatt]

Well, in my experience, I have cards I don't use, and I don't pay squat for them. So right there, the "FALSE" claim is wrong. I haven't been contacted by anyone that they are going to cancel my cards.

I don't carry a balance on the card I do use. I imagine the card companies don't like me much, but they do make a little bit off of each transaction through merchant fees. Certainly enough to cover postage on the bill.

[Pico and ME]

We had a few dormant cards close in the last 2 years, but prior to that never. I assumed it had to do with the financial chaos. Other than that, for us...

First, one has a credit card, does not use it, and therefore has no monthly payments. TRUE
A credit card that you have and do not use can cost nothing. TRUE
Anybody can afford a credit card by not using it. TRUE