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Credit card Annual fees return - your views?
Comments
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All that will happen is that a 'No-Fee' credit card would become a 'Special Offer' or 'Feature' of the card rather than the norm.
I can't see it happening0 -
I think it almost certainly will happen but like many of the fee paying products out there at the moment it will probably waive the fee if you spend over £x a year/ month on the cardAll posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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ReportInvestor wrote: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?
I have this account and use it as my main banking facility.
Yes you are not ISSUED with a book of personal cheques but you can get a printed cheque delivered to you if you fill a form in and there is no charge for that.
I get printed cheques each month for:
Council Rates
Sewer Rates
Internet Subsciption
and quarterly for BT phone bill.0 -
The market dynamic is still chasing new customers rather than retaining existing customers. Hence I cannot see this occuring universally. Possibly those card companies that think their customer base will not move, may try it. Barclaycard, I think, has low customer churn.
What I can see is a shake out of the market with fewer card providers. The drive for market share is due to the providers having high fixed cost, low marginal cost business base. They need as many customers as possible, but the eligable population is constant. Hence the drive for expanded share.
We have seen an end to offers that card companies cannot make money out of, aswell as pressure on card companies to reduce a range of charges deemed unfair.
My personal opinion is that apr's will increase and some cards may drive charges on low spend customers. Amex charge if you spend less than £500 a year.
There is enough competition in the market to ensure free cards remain, however the feature of cards paying you to use them may be only be offered to high spend customers.I wonder why it is, that young men are always cautioned against bad girls. Anyone can handle a bad girl. It's the good girls men should be warned against.-David Niven0 -
The personal banking sector has been doing badly for the last few years.... I believe theory says it works in a cycle similar to the motor insurance market but not as pronounced. It is common practice for large companies to take a hit in the low parts of the market to get market share and then almost become a cash cow in the peaks on the hope of low churn.... obviously people do get annoyed eventually and start switching again and so starts the downhill process off again.
The key difference from insurance is that with insurance recently it has been artificially been kept in the low stage (from a companies perspective) because of the number of new entrants to the market with big budget marketing campaigns (eg Esure, Diamond, Shielas Wheels, Swiftcover, ECarInsurance, Elephant, First Alternative, ABC Insurance etc). In the world of credit cards there havent been any massive burst onto the scene since Egg, Cahoot, Mint etc and so now they have gained their market share they start to need to look at profit instead and the big players will not mind at all increasing the profitability of the marketAll posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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trets77 wrote:all this reminds me of the rumour of the £10 charge a month on the First Direct account and that all other current accounts would follow suit once one had imposed the charge.
http://news.bbc.co.uk/1/hi/business/6148776.stm0 -
Phoenix79 wrote: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.
Thank you for reminding me about them. I did one day go through all the cashback cards and for some reason decided not to proceed with Morgan Stanley. Now I will have to go back to see what it was. The one I use, Nationwide, only refunds .5% and considering I use it for everything I do think I could do better. If I find one and providing none of them have an annual charge I will then have to use three, M&S for currency, Nationwide for no charges abroad and the new one for cashback. Can get confusing!0 -
M_Thomson wrote:They used to, but not anymore.
If I dont spend £4k+ on my BA Amex I get charged £14.
I'm going to move to an Amex cashback - especially as BA have sold of their regional services!
I 'survive' on a T Cook card and an Amex (for work) - thats it (paying off both in full)
I'm sure lots of providers will try and introduce charges......but you can bet lots of others will dangle the FREE...NO CHARGES carrot to grab some new customers.I am NOT a Woman! - its Overland Landy (as in A Landrover that travels Overland):rolleyes:
Better to be approximately right than precisely wrong.0 -
M_Thomson wrote:They used to, but not anymore.
If I dont spend £4k+ on my BA Amex I get charged £14.
I'm going to move to an Amex cashback - especially as BA have sold of their regional services!
I 'survive' on a T Cook card and an Amex (for work) - thats it (paying off both in full)
I'm sure lots of providers will try and introduce charges......but you can bet lots of others will dangle the FREE...NO CHARGES carrot to grab some new customers.I am NOT a Woman! - its Overland Landy (as in A Landrover that travels Overland):rolleyes:
Better to be approximately right than precisely wrong.0
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