denim

Last year, I was getting offers hand-over-fist for cards with 0% intro rates. I took one from Citibank, which was to expire this month. I paid it off last month.

So they made me a new offer for another of the same card, same basic offer. Fine. It just so happened that I had a new $3000 balance on my regular card from an overseas trip, so I transferred that over to the new card.

As far as I can tell, they're betting I'll do one or both of (1) fail to make payments on time, causing them to jack up their rate, and/or (2) use the card, especially use-the-card-after-I'm-done-paying-it-off. I never used the first card other than to pay off the initial transferred-in balance. Now I'm doing the same on the new card. Got it down $500 the first month.

Note that I'm betting on (3): not only will I not use their card, but that if (1) happens, I immediately transfer the remaining balance back to the original card. They can't win this one.

Am I missing something, or are they just ignoring the fact that I won't use their cards? They keep talking about some kind of Reward Points, which I don't care about since I won't use the cards.

Yakk

They are betting you'll screw up, because then they can rake you over the coals with interest. They are betting you'll choose to use their credit card, because then they get 2% of everything you spend.

Statistically, they are playing a winning game. It is possible for it to be a good deal for you, while it being a good statistical play for them...

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Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.

sailor

Precisely. It's numbers. Enough people screw up allowing them to jack up that massive interest or use the cards to justify it. It's like insurance--the insurance company might lose in terms of single people, but they always win in aggregate...

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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato