reply on: There Are Two Kinds of Credit Cards \ stacker news ~econ

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86 sats \ 7 replies \ @Undisciplined 20 Mar \ on: There Are Two Kinds of Credit Cards econ

I’m skeptical of the poor subsidizing the rich claim. Credit card companies aren’t constantly soliciting my patronage because they expect to get nothing out of it.

147 sats \ 3 replies \ @gmd 20 Mar

Yeah I think the rich who don't care to optimize credit card points make up for it in volume of spend, and the card companies make their profit in interchange fees.

Amex Platinum for example has become a status card but is relatively difficult to extract full benefits unless you travel a lot, it's a frustrating coupon book.

547 sats \ 2 replies \ @SimpleStacker 20 Mar

Those credit card fees are bank. I think the typical fee is like 2.9%! That's why they go after the rich customers. Imagine skimming 2.9% off everything the rich peoples buy

153 sats \ 0 replies \ @Undisciplined 20 Mar

That's a really good point. Even for a normal cheapskate like me, they don't need me to carry a balance to make money off of me.

10 sats \ 0 replies \ @gmd 20 Mar

Yeah unless they all move to the US Bank Smartly 4% card... I don't see how that's sustainable for them, I imagine they'll be nerfing more and more benefits (disable for rent, tax payments, etc)

124 sats \ 2 replies \ @k00b OP 20 Mar

Fair. It's a pretty cartoonish description. I have both rich and poor friends that carry credit card balances. Maybe the real difference is rationality wrt money.

21 sats \ 0 replies \ @Undisciplined 20 Mar

I think that's right. They offer me a combination of goodies and interest rates that I'm expected to pay more than I receive.

0 sats \ 0 replies \ @Bell_curve 20 Mar

I pay 95 bucks a year for my Marriott Bonvoy Amex (which has been discontinued, new users can get Chase Visa)

I have been a member since 2011. previously Starwood Amex then Marriott purchased Starwood

I get one free night per year which makes up for the annual fee

I have to admit I received better treatment than I expected from a residence inn after paying for my stay with points