Credit card Annual fees return - your views?

sicker

I wonder what effect this will have on credit ref. agencies. I subscribe to Experion but with only one card to worry about if this charge is applied I shall be canceling this service.

John

Jake'sGran

Phoenix79 wrote:

Isn't that biting off your nose to spite you face? Seriously....it would be a pain to pay a fee but if you use your cards correctly then you could still come out on top. 0% on purchase cards, cashback cards, 0% balance transfers etc....they would still be worth it even with a yearly fee on the card. The rewards would just be less.

I agree with Beancounter. My credit card bill is paid in full every month so it's definitely not a question of cutting off my nose to spite my face as I don't really need the card in the first place. I will not pay interest or annual fees, end of story. The card is used for convenience only; for the credit period and especially with Nationwide it's used for paying bills abroad as there is no charge.

JoseChungsDoomsday

won't happen, the banks would see a drastic reduction on their numbers of accounts and their sales would go out the window... plus with banks profits constantly increasing they simply cannot justify it

JasonW_2

If the banks are poking there fat greedy noses in here, then I too would add my name on the list of people who would close ALL cards apart from one, and that card would be chosen very very carefully.

Phoenix79_2

Jake'sGran wrote:

I agree with Beancounter. My credit card bill is paid in full every month so it's definitely not a question of cutting off my nose to spite my face as I don't really need the card in the first place. I will not pay interest or annual fees, end of story. The card is used for convenience only; for the credit period and especially with Nationwide it's used for paying bills abroad as there is no charge.

Fair enough. Horses for courses as they say. I think a cashback would suit you though. I clear my Morgan Stanley every month and get 3% cashback at the present time. Plus i feel more secure by using my credit card then i would my debit card.

isasmurf

Don't worry folks. PWC issue this report every year. Every year they say "0% deals will end. Annual fees will be introduced". So far they have been proved wrong.

BBC News: 1 Nov 2004
Guardian: 14 Nov 2005
BBC News: 13 Nov 2006

Xbigman

And if you take it to its logical conclusion...

Once everyone starts closing credit card accounts and using debit cards -
they'll charge for debit cards :eek:
Regards



X

lisyloo

Once everyone starts closing credit card accounts and using debit cards - they'll charge for debit cards

In which case I'll stop using them and go back to cheques............

ReportInvestor

They'll probably have abolished them . The Coventry First current account doesn't have a cheque book because its market research "found" that over 70% of people didn't want one.

Processing a physical cheque has got to cost bundles more than an electronic transaction. Ten times more?

lisyloo

They'll probably have abolished them

The point was that moneysavers will use the cheapest way of doing things available to them subject to practicality.
If banking becomes prohibitively expensive then more people will be putting their wages under the mattress.
An awful lot of our banking is discretionary as you can see from this thread.
Many people on here think they can easily manage without credit cards.

There are pratical issues like carrying and storing lots of cash and the employer paying you, but theorectically it's possible to operate without a lot of the banking we do.

So as other as said. If they want to start the ball rolling then....BRING IT ON.... they will be losers of lots of our business.

As an aside, I very rarely use cheques, but there are businesses that don't take cards, so I do still have to use them from time to time. This can happen on larger purchases and also very small businesses that can't afford the costs of the machines etc.