princess credit card a fraud

[smoosh21]

Sorry, but I don't agree with you. The worst client for a credit card company is the one who pays off his bill every month. If nobody carried a balance, they wouldn't make any money.

 

Credit card companies make huge fees off of the merchants you allow you to use them, often 2-3% of the total charged amount. This is where the real money is and it is hidden to most consumers as it considered a cost of doing business. I believe that AMEX also has a very large float window so it may take some time for the vendor to actually get their money.

[smoosh21]

I don't have a Princess credit card...

But I do have a Royal Caribbean Visa and a Celebrity Amex and an American Airlines MasterCard...

 

I have excellent credit due to high income and net worth, extremely low debt and spotless payment record, etc. So my credit limits on each card are pretty high. I have never had a bank LOWER my limits...In fact, they periodically raise them.

 

My thought if this ever happened to me would be that someone at the bank made a mistake...and I would be calling them to have them correct it...

 

The only possibilities I can think of for why the OP encountered this are:

1) Bank's mistake

2) Some drastic change in the OP's credit rating (bankruptcy, lost job/income, house into foreclosure, etc.

3) Misstatements discovered on credit application.

 

Even with banks in trouble, they don't usually take that drastic an action on an existing credit card client with a good payment record.

 

BTW, I've had my RCCL Visa only since about late 2005 and I've already taken one free cruise (June 2007 on Liberty of the Seas) and halready have over the 125,000 points needed for another one...

 

Except times have changed dramatically in the last few months. Banks are weaker now than at any time during the easy credit era. Banks are deliberately lowering credit limits on customers regardless of credit score or past payment history. If the auditors are telling the banks to reduce the liability of outstanding credit theshholds, than the bank has no alternative but to comply.

[coo359a2]

I go to Starbucks almost daily; $2.08 for a Vente. On the card.

 

 

I've learned from the best;) use it for every purchase. For $1 or less I don't use it though.

[bhopal21]

It's the banks, not Princess. I have a very prominent credit card that I use, I have a credit score that is so high it's ridiculous, and my card was cut from a $25,000 limit to $8,500 for no reason at all.

 

There are no ridiculous credit scores;) and you can bet there was a reason for a reduction in your credit line. If you request, you will be given a written explanation why, since they are obligated to furnish you that information.

 

Mike:)

[jalpert]

Oh yah, I'm aware everyone is different. To quote exactly what I said:

 

"People who can pay cash (at least people I know)"

 

I know that it could just be the several people I know. I know it can differ from place to place, but on the whole, there are people who have to use credit cards that would have used cash if they could. Hence, less transactions hence less fees.

 

 

I agree wholeheartedly. I pay my credit card off every month, but I use it for everything I buy, save for some small incidentals, like lunch in the cafeteria at work once in awhile. I've done this for years.

 

BC

[bhopal21]

I believe that AMEX also has a very large float window so it may take some time for the vendor to actually get their money.

 

About 4 days for our business, not too bad.

 

Mike:)

[gambit57]

I think we're talking about 2 different things. There are always good times to use credit cards, but what I meant was this. People who tend to carry a balance are people who tend to use credit cards more. People who can pay cash (at least people I know) usually do. When I said banks wouldn't make money of nobody carried a balance, I believe that is true because if nobody had to carry a balance, credit card spending would be a fraction of what it is now. That would lead to less transactions etc... I don't think I did a good job explaining.

 

I understand what you're saying, but I'm disagreeing with you.

 

America, in particular, is quickly becoming a cashless society. People will spend, regardless of whether they carry a balance. Why carry cash when you can get mugged, have it take up space in your wallet, etc when you have the convenience and protection a credit card provides?

 

Credit card companies will still make their money off the transaction fees. However, they make the bulk of their money off people with balances, not only cuz of the interest, but from other fees like finance charges, late fees, etc. The ones who pay off their balance every month tend to be much more conservative financially in the sense that they know it's stupid to pay the usual interest rate (not talking about those who get the 0% or other low rate cards). They're also the ones who usually pay their bills on time and otherwise avoid the various fees and charges that provide much of the big profits for credit cards.

 

However, those with balances are also the ones that are the most risky. Cuz they live at their financial edge, they're much closer to falling off. With the massive credit crunch, it's now not worth the risk for many credit companies so they're slashing credit limits. It's just unfortunate that they're doing it across the board instead of fine tuning who should be getting their credit limits cut based on actual risk. Barclays isn't the only one doing it either so it's a little pointless to be railing to Princess about it.

[cruiserjanet]

Please correct me if I'm wrong, but doesn't Barclays owe the OP an explanation as to why they reduced his credit limit? I've had a Costco AMEX card for more than a year. The only debt we have is our mortgage. We both have high FICO scores. We primarily use our AMEX card and pay it in full early each month. My credit line was reduced as soon as the cruise was charged on it. The strange thing is that it was reduced to only $150 more than the final payment of the cruise and it was reduced the evening or next day of final payment. Fortunately we had paid the cruise in full early but it seemed very strange to me. We paid the AMEX card in full within 2 days. The reduction in my credit limit wasn't nearly as drastic as the OP's but we will be checking into it soon nonetheless.

[Grego]

I can't say that I have a huge amount of sympathy if you're charging more than $1750 per month and paying it off on a monthly basis. Considering you have to spend around $100,000 on the cards (depending on the cruiseline) to get a free cruise, I don't find them a viable option anyways. Whether Princess has their name on the card or not, they don't have control over the terms of the financial contract that you agreed to with Barclay's.

 

Without reading the other posts, I would have to agree with your observation that you would have to put a huge amount on the card to get a "free" cruise. My feeling was that adding any new card to your collection was going to result in a reduction of your credit score (more cards, more possible debt, higher the risk, lower score) so it really wasn't worth it to us, especially in this difficult credit time.

[LARGIN]

There are no ridiculous credit scores;) and you can bet there was a reason for a reduction in your credit line. If you request, you will be given a written explanation why, since they are obligated to furnish you that information.

 

Mike:)

I agree.. There is more to this than we are aware of..

[hillslife]

Wow - pretty strong accusation against the bank from the OP:( We have the Princess Visa, got it the first day it was available, still have a very high credit limit, have gotten several OBC's from it because we charge everything on it and pay it off monthly.....so there must be more to this story than we all know:confused:

[Elkhorn20fan]

Have to strongly disagree with the statement you can not charge enough to get a free cruise. We have had a princess card for less then a year, charge everything, pay it off each month, and are half way to a free curise, 46000 points. We have also saved $3800 on a new car with the GM card. It can be done if you only buy the things you have the cash for, just let the cash make alittle intrest for 30 day till you need to pay the card.

[Thumper69]

Well I guess one can get an American Express Centurion or a Visa Black Card and not worry.. :eek:

 

Do you really want to spend over $3000 annual fee for a Centurion card? :eek:

Haven't been offered a Visa Black!

Now I'm retired gave up my platinum card because of the annual fee and alot less business travel. My lowlife Gold card will do fine and I still get the points plus bonus points but I'm never quite sure what I'm getting the extra bonuses for, it's hard to stay up with what you actually get from where.:D

 

Stay away from visa and mastercard the banks make toooooo much money on us and I believe fraudulently. I caught two of my visa cards doing rate hikes and I have great credit. I ONLY use them when they don't take Amex.

 

Anthony

[LARGIN]

Do you really want to spend over $3000 annual fee for a Centurion card? :eek:

Haven't been offered a Visa Black!

 

$495 annual fee for Visa Black.. :)

[FredS]

If you checked business news as to what is going on in the credit card field you would find thta many banks are cancelling cards of good customers, they are raising rates even when there is no or little balance on the card. A letter is sent when any change to card terms is made. Generally now if you do not accept the new terms you are told your card will be canceled when the balance is paid off or when the card expires. And it does not matter whay your credit score is, the banks are looking to make money or cancel the card if they can't.