Last year we were solicited by a representative of Barclay Bank at the Baltimore Airport to apply for a no fee (first year) credit card with Barclay Bank and get a free round trip on AirTran anywhere they fly. The minimum purchase requirement was $1. So we both signed up and went to Cancun... A pair of tickets worth $500.
Over the course of the year we used the card very little and always paid the balance in full. No way they were making out on us.in September we were in vacation and were 3 days late on paying a $200 statement so they raised out APR from 13% to 28%. That got me to thinking... Doesn't this card have a renewal fee coming up soon? Sure enough, next month. So I promptly opted out from the 28%, cancelled the card, paid the measley balance due and saved myself the renewal fee. The travel perks on the card are not all that great as compared with AmEx and their 2 miles for every dollar deal with n Delta.
This is why they are so stupid. They paid mucho dollars to AirTran to get us in the door with the free flight. Then we make a few measles measles purchases with no finance charges and they loose us a month before the renewal by raising our APR. Not that it made any difference, but it got me to thinking. Never give your customers a reason to have to think about the value of your service
Here is the point. If you want to be successful in business you don't shell out big bucks to get a customer in the door and then treat him like crap before you recover what you paid to get him in the first place. But appraently there is no shortage of stupid behavior in the banking world today.
We are canceling all our travel reward cards that have a fee except Amex. A couple years from now the banks will be healthy again and hungry for business and we'll sign up again and get all those front end teaser miles again. I can't wait.
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