- Centurion Member
- Posts: 1361
- Joined: Tue Jun 28, 2011 10:13 pm
- Location: New York state
The thing is 2percentplus doesn't want to pay an annual fee on his/her Bank of America FIA miles card.
Basicallywhat happened back in the 80's all credit cards except store charge cards had annual fees. Chase had $25, Citibank had $20, First fidelty had $15. Then some companys from the boon docks started sending out applications of Gold cards with no annual fees, but major banks did not care. some honest man who was walking around 1984, didn't want to pay American Express annual fees and the banks fees, so around 1985-86 a man or woman started another credit card finincial company in the Back room of a department store called sears.
Then when the banks saw stores and restaurants starting to take this card, they took the annual fees off, back then the cards were grey, gold and platinum. Some people paid interest and others paid their bill in full.
As we all know there are only 2 ways the banks make money- 1 is by annual fees and the other is by interest.
So for somebody like me when we had no annual fees and I paid my bill in full, First card, Bank 1 and Chase made no money on me.
Paying credit cards isn't like a mortgage. I'm not saying everybody pays the bill in full but a lot do. Where as most people have a mortgage. What I'm trying to say some pay there credit cards in full and some pay over time.
Banks were not happy so they went to the airlines and hotels, they started offering exclusive credit card offers for miles to sign up so Chase, Citi, Bank of America ended up with airlines and hotels. Annual fees were only on those cards.
What the banks have done is added 2 cards for the higher level card. Example capitol1 gold card. Lower level 1.25 miles no annual fee, blue level after first year $59.00 and 2 miles per dollar, Chase Sapphire 0 fee for the basic then 95.00 for the sapphire. Citibank has the Thank You Preferred for $0 and the Premier for $125. Part of the money goes to the the concierge service and the other part goes to our perks.
But since I have a lower level venture card the miles I'm not getting goes to the banks and maybe the concierge service.