The what you think will happen this year (2016) thread

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4ktvs
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The what you think will happen this year (2016) thread

Postby 4ktvs » Fri Jan 08, 2016 5:55 pm

I thought it would be fun to make a thread on this topic. I hit enter before meaning to post by mistake.


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Re: The what you think will happen this year (2016) thread

Postby kdm31091 » Sat Jan 09, 2016 3:29 pm

The MS community is upset because serve reloads have been killed. I also noticed my bank, TD, no longer offers the 5x rewards for 6 months on their cash back card (which was a big MS target).

So 2016 I think will bring us closer and closer to the end of people gaming the system, and we will all simply have to earn points the old fashioned ways. A lot in 2015 started this trend.

Other than that, not foreseeing any major super exciting cards being released but whos to say? Unfortunately I think we will probably just see more medicore offerings like the barclay 1.5 percent card. I dont think anything mind blowing is coming considering many banks are clamping down on reward abuse and thus arent likely to come out with a hugely enticing new card. Just my take on it. I think we will see more "realistic" (read: average) rewards cards if anything.

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Re: The what you think will happen this year (2016) thread

Postby Nixon » Sat Jan 09, 2016 3:51 pm

Actually it's banking laws that are killing it.
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Re: The what you think will happen this year (2016) thread

Postby kdm31091 » Mon Jan 11, 2016 8:34 am

Regardless, I think the days of earth shattering rewards cards coming along are (unfortunately) over at least for now. It seems most changes have been in a downward direction. The only really "generous" new offering would be Discover's double rewards promo, which is a base 2% card and 10% on categories but they do delay it for a year so it's not like you get it right away. Other than that, nothing really amazing has come along (people got really excited over the FNBO Bucks Back, going so far as to lie about their location to get it, but it was just another 2% card, so I don't get it).

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Re: The what you think will happen this year (2016) thread

Postby Vattené » Mon Jan 11, 2016 11:23 am

I'd like to see a game changing new card come along, too, but won't hold my breath. The bottom line is credit card companies have to make money off of these products one way or another, so there is only so much they can give in rewards. Until the general public is willing to pay more in interest, us reward-seeking PIFers may be near the ceiling in what we can get out of cards.
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FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Re: The what you think will happen this year (2016) thread

Postby 4ktvs » Tue Jan 12, 2016 8:46 pm

Vattené wrote:I'd like to see a game changing new card come along, too, but won't hold my breath. The bottom line is credit card companies have to make money off of these products one way or another, so there is only so much they can give in rewards. Until the general public is willing to pay more in interest, us reward-seeking PIFers may be near the ceiling in what we can get out of cards.


Someone told me some states had or still have laws in place that limited the max APR of a credit card product to protect customers. Is this true and is there any federal laws on the books for a max APR?

The highest I have seen is %29.99 APR.

I also think they have played just about every rewards game in the book to find out what works best for THEM and now we are starting to see the results in the boring new line ups of cards.

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Re: The what you think will happen this year (2016) thread

Postby Nixon » Wed Jan 13, 2016 6:09 am

The state the bank is based in is what the interest law applies to generally. Certain fees such as a minimum interest charges however are subject to local law which is why Barclaycard cannot offer certain cards in certain states.
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Re: The what you think will happen this year (2016) thread

Postby kdm31091 » Wed Jan 13, 2016 7:37 am

4ktvs wrote:
Vattené wrote:I'd like to see a game changing new card come along, too, but won't hold my breath. The bottom line is credit card companies have to make money off of these products one way or another, so there is only so much they can give in rewards. Until the general public is willing to pay more in interest, us reward-seeking PIFers may be near the ceiling in what we can get out of cards.


Someone told me some states had or still have laws in place that limited the max APR of a credit card product to protect customers. Is this true and is there any federal laws on the books for a max APR?

The highest I have seen is %29.99 APR.

I also think they have played just about every rewards game in the book to find out what works best for THEM and now we are starting to see the results in the boring new line ups of cards.


Yup. I think in terms of cash rewards/cash equivalents, 5% cards are basically never going to happen again (with steady categories, anyway). Sallie Mae, Citi Forward, TD's Easy Rewards with 5% for 6 months, etc. It's just too great of a loss, apparently. Discover and Freedom make it work by rotating the categories. Even with Cash+ you're at the mercy of what they decide to provide for choices (and we all know they've removed some of the older, more broad categories).

I think we will see more 1.5% ish flat cards if anything, or maybe 1% base with 2% on a few things etc (like Suntrust's new grocery/gas card). Hardly exciting when one can get a 2% everywhere card, but I also don't think the Double Cash will be around forever. Just my opinion.

I hope I'm wrong and we see something groundbreaking come out, but I won't hold my breath. Even in 2015, the only really new, exciting product (in my view) was Discover Miles, which is really only compelling for a year of 3% on everything. After that, it's just a Quicksilver, essentially. The new Fidelity just came out, but it's just a US Bank version of what already existed, so I don't consider that very exciting.

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Re: The what you think will happen this year (2016) thread

Postby Vattené » Wed Jan 13, 2016 8:51 am

kdm31091 wrote:Yup. I think in terms of cash rewards/cash equivalents, 5% cards are basically never going to happen again (with steady categories, anyway). Sallie Mae, Citi Forward, TD's Easy Rewards with 5% for 6 months, etc. It's just too great of a loss, apparently. Discover and Freedom make it work by rotating the categories. Even with Cash+ you're at the mercy of what they decide to provide for choices (and we all know they've removed some of the older, more broad categories).

I think we will see more 1.5% ish flat cards if anything, or maybe 1% base with 2% on a few things etc (like Suntrust's new grocery/gas card). Hardly exciting when one can get a 2% everywhere card, but I also don't think the Double Cash will be around forever. Just my opinion.

I hope I'm wrong and we see something groundbreaking come out, but I won't hold my breath. Even in 2015, the only really new, exciting product (in my view) was Discover Miles, which is really only compelling for a year of 3% on everything. After that, it's just a Quicksilver, essentially. The new Fidelity just came out, but it's just a US Bank version of what already existed, so I don't consider that very exciting.


That's actually why I haven't jumped on the Double Cash. I hope it does last, but I'm not convinced that it will, so for no introductory bonus it just isn't worth signing up for a new account to me (worked out well because Discover's double cash back promo came along after anyway). I almost signed up for a Discover Miles for 3% on everything for a full year, but agree the long term value of the card, while nothing to scoff at, isn't that special.

One positive thing in my view is the simple cash back cards increasing in competition. Card companies have really stepped up their game in straightforward cash back cards when its easy to base a rewards program in points whose value can easily be diluted later. I kind of think they have to, though, to get much of the general population to sign up for anything new. There are just so many other options on the market. My spending isn't well suited for the cards with more nebulous perks, so it's good for me.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Re: The what you think will happen this year (2016) thread

Postby takeshi » Wed Jan 13, 2016 9:53 am

kdm31091 wrote:Discover and Freedom make it work by rotating the categories.

...and by using caps.



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