More free goodies from credit card companies?

May 20, 2009

Will the new credit-card regulations harm people who pay their balance in full every month? Quite the opposite, says Ron Lieber:

Will credit card companies kill reward programs or drastically scale most of them back? Of course not…

People who spend a ton generate fees galore from merchants, and that money helps the card company stay in business. So you may soon see card companies giving away more goodies or lowering annual fees for people who hit certain spending thresholds each year.

It’s conceivable that your habits might have to change if you have lots of different credit cards, none of which you spend a lot of money on, and all of which you pay off in full each month. But if you’re in that situation, cutting back on the number of cards you have is probably a good idea anyway. The fact is that the credit-card bill is a good thing for all consumers, not just those who run a balance.


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