http://globaleconomicanalysis.blogsp...dit-cards.html
http://www.thetruthaboutcreditcards....daily-balance/
http://www.bankrate.com/brm/news/DrDon/20060901a1.asp
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Would you consider this greed or risk adjustment on the part of the CC companies?
My bet is that the public will consider this a rip-off, but I think the CC companies have perhaps the greatest sense of outlook for seeing massive credit/and/or/economic trouble for the future.
But, I'll still say that I see the MasterCard and Visa booths open at my university to give away credit to any student who seeks it...
It's only a rip off when the credit stops and there is nothing but a bill facing the card holder.
That's the mind set of the credit consumer of America today.
IMHO the two cycle billing is a new way to extract a lot more 'profit' from prime credit card customers who tend to only use their credit cards for large purchases (like Christmas presents), but who also tend to quickly pay the balance down to zero ! Yes this will be viewed as a rip-off ... but as Deo points out a lot of credit card users view any card that operates above a 0% 'teaser' rate as a rip-off. But unless somebody decides to rescue the credit card commercial paper market, scarce bank loan capital and rising delinquencies will cause ALL credit cards to alter their terms and interest rates to rip-off level.