AOPA credit card --- WARNING.

"Jay Honeck" wrote in message
news:3Lspd.391816$wV.73568@attbi_s54...
But tell me, what will you do when home, auto and commercial proprerty
loan companies hike their rates just because they feel like it? Even if
you pay on time, every time. All they need to do is lobby hard enough to
put it into law and you are totally screwed.

What then, Mr Clever Guy?

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,
that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

In a previous article, "RS" said:
"Jay Honeck" wrote in message
What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,
that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on

No, credit isn't credit "regardless what it is for". The credit agreement
of a credit card (you know, that fine print that you didn't read) clearly
gives them the right to hike the rates every time it strikes their fancy.
The loan agreement of auto loans and home loans are different, and if you
read the fine print on them you'd find that they can't raise the rates on
a whim.

That's why smart people take out bank loans rather than borrowing against
credit cards if they *must* use credit.

--
Paul Tomblin http://xcski.com/blogs/pt/
And on the seventh day, He exited from append mode.

RS wrote:

"Jay Honeck" wrote in message
news:3Lspd.391816$wV.73568@attbi_s54...

But tell me, what will you do when home, auto and commercial proprerty
loan companies hike their rates just because they feel like it? Even if
you pay on time, every time. All they need to do is lobby hard enough to
put it into law and you are totally screwed.

What then, Mr Clever Guy?

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.


What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,
that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

They aren't changing the rules midstream. Read your credit card
agreement. This is all spelled out in there. I actually read mine and
it is quite appalling what you agree to when you accept a credit card,
but it is hardly a rules change mid-stream. I don't care about all of
these issues as I pay my bill in full each month and they can't charge
me anything for that, because the agreement says so!

Likewise, my home mortgage can't be changed arbitrarily other than the
annual adjustment due to its being an ARM. However, this is likewise
all spelled out in the agreement I signed when I got the loan.

As for car loans, anyone buying a car on a loan is almost as foolish as
anyone carrying a credit card balance. Cars should be bought only with
cash as should any depreciating asset.

You do read your agreements for loans, credit cards, etc., right?

Matt

rules mid-stream. Credit is credit - regardless what it is for. You guys
on your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans
at all).

Well, now that you mention it, I have no mortgage payments, own two
cars, a pickup and a jeep outright, don't owe the doctor or dentist any
money, and pay off all my credit cards at the end of the month. Oh yeah, I
put three kids of my four kids through college -- one elected to pass on the
opportunity. I got wise to the stupidity of paying exhorbitant interest
rates on loans and credit cards more than twenty years ago. It seems to have
rubbed off on my kids. None of them ever pay the "minimum balance due,"
although I will admit, one of them is paying a mortgage off.

"RS" wrote in news:XVspd.565691$mD.442744@attbi_s02:

snip
What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history?
Well, that's what the credit card companys are doing now - they are
changing the rules mid-stream. Credit is credit - regardless what it is
for. You guys on your high moral horses about paying credit cards off
every month do not impress me (unless you have zero credit - no home,
auto, commercial loans at all).


I would immediately refinance with a company that offered a fixed rate
mortgage.


Just the same way that I don't have an AOPA credit card - but if I did, and
they jacked up my rate, I would take one of the many 0% balance transfer
offers and transfer the balance to a card that was not involved in usury.

"Judah" wrote

Just the same way that I don't have an AOPA credit card - but if I did,
and
they jacked up my rate, I would take one of the many 0% balance transfer
offers and transfer the balance to a card that was not involved in usury.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

If you call the bank that has the account, and tell them you will be closing
your account if they do not match the other card's going rates, chances are
they will lower your rate to match.

Try it and see. It has worked for me in the past. (not the AOPA card, but
all companies want your business)
--
Jim in NC


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"RS" wrote in message
news:XVspd.565691$mD.442744@attbi_s02...
"Jay Honeck" wrote in message
news:3Lspd.391816$wV.73568@attbi_s54...
But tell me, what will you do when home, auto and commercial proprerty
loan companies hike their rates just because they feel like it? Even if
you pay on time, every time. All they need to do is lobby hard enough to
put it into law and you are totally screwed.

What then, Mr Clever Guy?

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history?
Well, that's what the credit card companys are doing now - they are
changing the rules mid-stream. Credit is credit - regardless what it is
for. You guys on your high moral horses about paying credit cards off
every month do not impress me (unless you have zero credit - no home,
auto, commercial loans at all).



You are truly ignorant. Most secured loans have fixed rates and fixed time
periods. You should read your credit card agreements. If you think you can
do better, then by all means start a money lending business. Otherwise,
keep your mouth shut and take your whining elsewhere. If you really feel
wronged, cancel the card and take your business elsewhere.

Well, the rate on an auto or home loan is fixed by the contract, silly!
Or else it is specifically bound by the contract to whatever
increases that are in the contract. Just like the rate on your credit
card is variable according to the contract you signed when you applied.
You DID read what you agreed to, didn't you? If you didn't agree with
it, why did you sign the application?

BTW, in fact I do not have ANY debt outstanding. It's fun to tell that
to people calling offering re-financing. I'm not rich (except in
name)... just frugal.

And frankly, I don't care whether I impress you. Frankly, you don't
impress me, much.

Rich


RS wrote:

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,
that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

"RS" wrote in message
news:XVspd.565691$mD.442744@attbi_s02...

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.


What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history?

How could credit card companies hike the APR on my auto or home loan?

On Thu, 25 Nov 2004 22:21:43 GMT, "RS" wrote:

"Jay Honeck" wrote in message
news:3Lspd.391816$wV.73568@attbi_s54...
But tell me, what will you do when home, auto and commercial proprerty
loan companies hike their rates just because they feel like it? Even if
you pay on time, every time. All they need to do is lobby hard enough to
put it into law and you are totally screwed.

What then, Mr Clever Guy?

I'm not following you. If you pay "on time, every time" -- credit card
companies CAN'T charge you any interest.

What would you do if they hiked the APR on your auto or home loan just
because they felt like it, even if you had a perfect payment history? Well,

Does the phrase; Adjustable Rate Mortgage ring a bell.

that's what the credit card companys are doing now - they are changing the
rules mid-stream. Credit is credit - regardless what it is for. You guys on
your high moral horses about paying credit cards off every month do not
impress me (unless you have zero credit - no home, auto, commercial loans at
all).

That doesn't quite make sense.
They are not changing the rules. They are there in B & W (color in
some cases). In every card I've had over the last 10 years they have
stated they could change the rates at any time they deemed necessary.

The point is: If you really need to borrow, which nearly every one
does at one time or another, do it sensibly.

Like the checks they offer at very low interest rates. Is there a
catch? Generally the answer is yes.

Move your loans to our card and pay only 3%? Look in the fine print
and that may only be good for a couple of months and then the rates go
to 18% APR, or even higher. Have enough equity to cover them? Take
out a second mortgage to pay them off. Most likely the rates will
only be about a third of that of the CC. Then cut up every card
except one and limit its use to absolutely necessary items only.

OTOH car and home loans get bought and sold just like any other
commodity. Some have some pretty high penalties for paying off early.

*IF* I need money I can write checks against the equity in our home
loan. I could get a signature loan. The interest is only slightly
higher than the mortgage which is a small fraction of what a credit
card would charge. It's also treated as a separate loan and doesn't go
against the home loan... unless we'd default.

For the person who has 3 or 4 credit cards, finding one company with a
low introductory APR for 6 months might be their way out of a deep
hole that's been getting deeper.

You have to be careful about changing CC companies though as each
credit check goes against your rating.

Be it a CC or bank loan they have to tell you up front, just what it's
going to cost. Be skeptical of the TV adds. Take time to read the
fine print no matter how restless the loan officer gets. :-)) Those
companies are going to get their money one way or another

Credit card companies usually make a fixed amount off every sale.
Probably on the order of 5%. You can say the merchant pays that, but
who isn't going to pass it on to the customer?
When the CC companies start pushing the rates up it is for one of two
reasons. General rates are going up, and/or they have a lot of
customers defaulting on payments. CC rates are so high because there
are so many defaulting on payments.


Credit cards are the easiest way to borrow money. They are also the
most expensive/poorest way, with maybe the exception of the local
loan sharks.

I don't know if the law has changed, but at one time the credit card
companies could charge at least double what an individual could for a
loan.

BTW, every since the checking account has existed, people have
depended on the time for a check to clear. That is coming to an end
as are the jobs flying canceled checks. In the not too distant
future, when you write a check, it will be debited against your
account and credited to the payee almost instantly. It's this way in
some areas now, but it's becoming universal.

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com