Wednesday, July 28, 2010

Be a lousy client to your BANK.......Part 2

Next time when you are working, surely you will subscribe a few credit cards from your respective banks. The credit card salesman equipped with giving free gift marketing strategy will approach you personally in persuading you to have one card. Eventually, when you go for shopping, you swipe the card and you feel excited cause you feel that you don't need to pay with cash. You can buy all things you wanted with credit cards. You are only required to settle  a minimum payment in your credit card bill. Later on, you found out that you are in big trouble to settle the credit card bill. Now, you become a loyal and good customer to your bank. No wonder why so many youngsters nowadays go broke..... (read here)

The bank loves you very much with your heavy debt that incurred from your aggressive spending. The bank earns money from charging you a minimum interest of 13.5%, late payments, annual fees and you also need to pay for goverment credit card tax. Then the other bank as well will offer you balance transfer, credit card loan and advanced cash facilities. These all tactics are used to earn money from you legally. If you don't know how to make good use of credit card, in reality you are getting poorer. For me, I use credit card for convenience purpose. How about you?

Do you know you are not a good customer if you pay debts on time?
From The Star newspaper dated on July 26

I AM quite sure the bank that issues me my credit cards (just two) does not consider me a good customer. I spend way below my credit limit and, save for a few occasions, pay my bill in full and on time. A friend who works in the industry once told me: “To be honest, you are not the kind of customer we want. A good customer is one who spends more, defaults now and then, and allows us to charge interest on his outstanding balance.” Card issuers have long found their bread and butter in penalty fees and high interest rates paid by consumers who carry a balance. Now, frugal-minded consumers are charging less on their credit cards, paying down their balances and steering clear of penalty fees – steps that are financially responsible but have the industry scrambling to find new ways to make money.”

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