No. of Recommendations: 0

I've received a couple of private E-mails basically opining that I regard CC companies as an evil empire. Actually I don't. They're like the great white shark. If it attacks you, it's not personal, it's just hungry. By the same token, the CC company doesn't have it in for you personally, it just wants to get its hands on as much of everybody's money as it can. In that respect, a CC company is totally non-discriminatory. It will take anyone's money.

Apropos GE Capital and its desire to rid itself of people who pay their balances in full, here's a thought: Pay off the balance except for that last $1.00 every month. The interest rate will still be high, but you'll only be paying a couple of cents/month in interest. Let's see what they'll do with that one.

Grace period reduced to 0 days? Prepay the next months estimated balance in full. This ONLY makes sense if there are 'perks' attached to the card like flier miles. Fortunately Citibank hasn't tried to get rid of the grace period. We pay a $50 annual fee and charge about $20,000/year more or less. As we pay the balance in full every month, there are no interest charges. It gets us 20k miles/year (+/-) for $50, for a cost basis of about 1/4 cent per mile.

The minute there is absolutely no advantage to us to use a CC is the day we close our accounts and go to a strictly cash and carry basis.

They may not be the enemy, but they sure aren't your friends.

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