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February 21st, 2007, 04:43 AM #1Credit Card Company Stupidity
It took me over two years (when I started trying) to get a credit card. And that's thanks to being able to piggyback off my Mom's credit. I had been turned down left and right to this point.
In hindsight, I should've approached Citibank, Bank of America, or a number of others. Instant card!
Anyway, I went to check my balance, saw it had a small balanace accrued and decided to pay it, which I've been doing since I've had the card (a little over a month). Then I got what would fit perfectly in Kellie's Just For Laughs section, a rejection message.
Bad Payment? No, the payment would've been perfectly good. But this is the message I got:
We're sorry, one or more of the following payments were not scheduled.
You exceeded the maximum number of payments you can make in a calendar month.
If you need further assistance, please call ......
This is just another example of the ludicrous business that is the credit industry. I'm very close to sending them the card back and telling them where they can file it. The company is FIA Card Services for the record, which according to my bank statement is related to MBNA.
But you can bet I'm going to CALL alright....I just feel sorry for whoever answers the phone.
February 21st, 2007, 06:08 AM #2
- Join Date
- January 18th, 2005
- Colorado River, Bullhead City AZ
I believe this is normal for almost every credit card company. 3 payments per cycle.
Pay the bill at the end of the month. You will not accrue any interest charges if paid usually within 25 days from the statement.
I think this was setup to prevent people who have a low available credit to stay within their means and card limit on a monthly basis.
February 21st, 2007, 11:00 AM #3
MBNA no longer exists. There were bought out by Bank of America last year.
February 21st, 2007, 11:21 AM #4
Everyone has rules, for many reasons.
Allen made a good point.
Remember they have to pay for every transaction, even electronic ones. If someone were to pay the bill of $1,000 in 10,000 $0.10 payments, they would lose money.
I've dumped ALL of my cards except three. Amex is just the best company out there, hands down. The customer service will never be beat. The other two I have from my bank for one reason, they are free.
You never really need more than that. If you have to go that far into debt for an emergency, a credit card is NOT the place to do it. Get a loan.
Not sure who said this but I read it long ago. Those who understand compound interest will always profit from it. Those who don't understand it are doomed to pay it forever.
February 21st, 2007, 12:30 PM #5
February 21st, 2007, 03:30 PM #6
Apparently 4 is their limit per month. I had been paying about $100-$150 each time (about every week), just so I can make sure I am actually able to pay it off (never know when I'm going to be broke, which is getting close). My cycle was over on the 15th, I "owed" $15, but had a balance of $90, so I went ahead and just paid that off.
I'll just go back to the way that's gotten me by for many years without a credit card, cash or debit card!
February 22nd, 2007, 02:10 PM #7
February 22nd, 2007, 03:46 PM #8
I'm a credit fan. Wasn't so much when I was younger, but I made the effort to clean up my credit 5 or 6 years ago and have been a fan ever since. I just never really knew what I was doing with credit before.
So long as you pay off your statement ending balance each month, you never accrue interest. If you're willing to stay on top of it, it's a great way to build credit, earn air miles, etc.Eathan Mertz
Black Cat Mining - Gold Prospecting & Rockhounding Equipment
February 23rd, 2007, 05:45 AM #9
I got this card for the exact point of building credit. I thought it was sad that I'm 31 with no credit. I don't have bad credit, I just have no credit. But when they refuse my payment because I've paid too much (I still LMAO when I say that out loud), then I just have no use for it.
Cash and my debit card have gotten me by for years...many, many years. I just will not use their card anymore (which I haven't since I got that notice), and I'll just not worry about credit (Ive gotten by this long without it). Credit seemed like the cool thing to have, but f' it. It apparently has not affected my life UNTIL I tried to start gaining it.
When they'll accept my money again, I'll pay off the balance, then use my handy shredder (with credit card option) and move on in my life. I don't waste my time with crap not worth wasting time over.
February 23rd, 2007, 07:52 AM #10
- Join Date
- January 18th, 2005
I would hope that you do not just cut up the card over this issue. You learned a great lesson about how many payments you can make, now use it to your advantage.
Actually, each credit card company has different rules. Some let you make more than one payment a month (in your case, you said 4) but there also some companies that only allow you one payment.
Think of it this way. If your bank charged you $5 each time you made a payment to that credit card, you would probably make just one payment a month, so you had to pay that fee only once. The credit card company is doing the same thing by not accepting the payment. I am sure that is in the agreement you signed to get the card.
Unfortunately, there are not many resources out there that teach you how to build the credit, they only offer the credit card and then leave you on your own to figure it out. You got the card to build your credit and that is exactly what you should use it for. Maybe I can help give you a few pointers.
As you noted, you are never sure what money you will have at the end of the month to pay the card and your intentions of making sure it is paid off were absolutely correct, but part of working with any system is understanding what they are looking for. Building credit is exactly the same. Keep using your cash most of the time, but use the card once in a while to build your credit. Otherwise, keep it in your wallet.
Here are a few tips for using the card wisely to build your credit rating and what the credit reporting companies actually look for. Maybe these will help you, or anyone else, improve that credit rating and keep you from cutting up the card.
There are 3 things that the reporting agencies look for when giving you a credit rating in relation to a credit card or cards.
The first is timely payments. Making them on time and making them every month.
The second thing is not overextending yourself. This is not pointed out very often to new borrowers, but the credit agencies actually lower your rating if you use more than 60-75% of the credit limit (even if you pay it off every month!) In other words, if the credit limit is $500, never run the balance above $300. The old saying about getting credit because you do not need it is what this is all about. After you prove for a while that you do not need $500, they probably raise the limit to $1000 and now you can spend $600 a month.
The third thing is how many requests for credit you have made and have been accepted for. The more credit you get approved for, the lower your scores will go for a period of time so that you cannot continue to get credit that will put you in a position to not be able to pay it off. For instance, if you were to buy a house, get a car and get two new credit cards, your scores would go down for a year or 6 months and slowly climb back up as you go through time not asking for more credit.
I have actually seen people turned down for financing on a home because they did it backwards. They got a new credit card, or bought all their appliances, then went and leased a new car and then went to get the mortgage for that new home and learned the interest rate went up or even that they were now not approved because the bank was now concerned that they were overextending themselves.
Many people think that paying the balance off every month is important in the credit rating, but your credit report will show what you charged, not what you paid off. In order to not pay interest, you want to pay off the balance, but for the credit rating, it matters little.
When helping people to establish credit, I often give the advice to get a credit card and make one charge a month on it, but still use their cash most of the time. This would be a good plan for you starting out.
For instance, just charge $20 for gas in the car and then send in the $20 on time every month. The credit agencies do not care whether you charged $20 or $20,000 as long as you make that payment on time and do not use up all your credit.
Doing it this way will actually give you a great credit rating because you are proving that you can make timely payments and you do not need all the credit they extended you.
Just some suggestions. I hope this helps you understand a little more. It is worth wasting your time over this stuff because somewhere down the line you are going to want to have this credit established.
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