The annual fee for the Starwood American Express card is going up from $45 to $65. Is it worth the price to pay for the right to use a credit card?
Jesse has a credit card that he doesn’t use, but keeps open to help his credit score. Citibank has foiled his brilliant plan by adding a $60 annual fee. He can avoid the fee by charging at least $2,400 on the card each year.
Michael is in a situation that we anticipate will become very, very common in the coming months. His credit card company has imposed a $99 annual fee. He can accept the fee, or close his account. Not only is this his only credit card, but it’s the oldest credit line he has, so closing it would hurt his credit score. What would you do?
Chuck lost his job several months ago and wanted to continue his American Express membership, but had trouble justifying the $50 annual fee in his limited budget. So he launched an Executive Email Carpet Bomb, started his own anti-AmEx blog and started picketing…
“Revolvers”—customers who keep a revolving balance on their credit cards—used to be the cash crop for credit card companies. But now more and more of them are turning into expensive charge-offs, and the new CARD act is going to make it harder to acquire those riskier customers anyway. As a result, card companies are beginning to look more closely at the customer who was most hated back in the credit-orgy years: the deadbeat.