Quote:
Originally Posted by aigel
I didn't say that lending practices were good. But this thread is about good customers getting their credit lines chopped. This is because there is no credit available - even for low risk customers!
George
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But for a CC company you are not a 'good customer'.. you are a very poor one. You use their services responsibly (no going over the limit and having extraordinary charges levied)...you always pay it off in full (so no interest)..in short you are probably 'costing them' money or not making then enough profit.
The ideal CC customer (private that is) is a person who regularly 'adds' 50% of their credit limit per month to the total whilst keeping an outstanding debt of between 30-40% of their limit on the card.. enough interest to make good money off them but just covering the credit long term...
The 'good side' however it that being a 'poor customer'...results in two different responses... one CC company threatens to cancel my account becasue I do not use it enough (true it is a 'spare' card should I lose one..so spending on it £0 usually and has been for a few years) the other looks after my 'interest' (well theirs actually) by calling me if there are transactions on my card that our out of the ordinary, recently it has 'saved' be something like $5000 bucks as somebody 'stole' a postal delivery on its way to me...and used the details so gained fraudulently. They called, asked me I had done such and such (spending money in a Ford garage.. arrrgggghhh the insult) and refunded me the money...it was a bit tough to argue when I had spent a few ££££ in a Porsche shop the same day a couple of hundred miles away...
But nonetheless the credit limit does go up and down almost without logic.. the fact its something like 10X my monthly spend means it does not bother me but it does happen..