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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: To CC or not to CC? Date:  10/6/1999  12:30 PM
Author:  jaminer1 Number:  17072 of 312189

SpiritCorsair said:
That's like giving a rebate on something... Buy it for $10, get back $2 in the mail... why not just sell it for $8? (I guess it's not gimmicky enough...)

Rebates work because people see the prominently displayed SALE / REBATE sticker and buy the product, then for various reasons don't send in for the rebate. Thus the company sells full-priced stuff.

I've seen data (can't remember where) that offering a $1 rebate costs a company $0.20-$0.30 (including admin. costs).

SpiritCorsair said:
Besides, don't CC Inc. consider us responsible, timely paying, never-run-up-the-balance people "deadbeats"? How will a no-fee credit card make its money (aside from sneaky "maintenance" fees for not having a balance -- don't get me started on that!)?

People do carry balances. Also, CC Inc. gets a fee from merchants for each use of CC.

I have a no fee platinum card that saved me thousands of dollars when I wrecked a car that I rented in Ireland (forgot about that whole left-side-of-the-road-thing). The (free) CC-sponsored insurance picked up the whole repair bill.
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