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 Maybank credit card interest rate changes

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TStishaban
post Dec 25 2007, 11:25 PM, updated 17y ago

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Maybank posted this notice on their website, stating the changes in their interest rates that will take place on July 1 2008.

They also have this statement for their interest free period:

QUOTE
If you opted to pay partial or minimum repayment of your previous statement account, the finance charges on your unpaid retail transactions will be calculated from the day the transaction is posted to your card account.
That sounds to me like if you carry a balance, there will be no more interest free periods even for the current month's purchases.

pcang79
post Dec 25 2007, 11:44 PM

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Dont use Maybank credit card anymore!!!There are many other choice beside Maybank.
SUSDavid83
post Dec 25 2007, 11:59 PM

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I have posted this in the credit card thread.
yewkhuay
post Dec 26 2007, 12:20 AM

I don't even belong here....
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i feel sorry for maybank, i will hav to switch,...
quintessential
post Dec 26 2007, 12:24 AM

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i plan to use maybank credit card. now i made my second thought.
SUSDavid83
post Dec 26 2007, 06:02 AM

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QUOTE(quintessential @ Dec 26 2007, 12:24 AM)
i plan to use maybank credit card. now i made my second thought.
*
Any particular reason?
bioweapon83
post Dec 26 2007, 06:07 AM

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I think this is inline with a secular release by BNM and it's being applied by all banks.
wintermelon
post Dec 26 2007, 11:56 AM

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Will other banks do the same? Lucky I'm not using MBB credit cards.
b00n
post Dec 26 2007, 12:08 PM

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QUOTE(wintermelon @ Dec 26 2007, 11:56 AM)
Will other banks do the same? Lucky I'm not using MBB credit cards.
*

Yes, all banks nation wide would have to implement Tiered Interest Rate Pricing by 1st November 2008.
It's better for those prompt payers i.e. they would pay less interest.
But for constant late payers, there would be some problems. One major one is the late fees. I.e. in BNM's secular, the late fees is going to be percentage of the outstanding balance (IIRC - 1%) or a minimum of RM5, and no longer RM5!

It is an initiative by BNM like explained by bioweapon83.

wintermelon
post Dec 26 2007, 12:31 PM

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QUOTE(b00n @ Dec 26 2007, 12:08 PM)
Yes, all banks nation wide would have to implement Tiered Interest Rate Pricing by 1st November 2008.
It's better for those prompt payers i.e. they would pay less interest.
But for constant late payers, there would be some problems. One major one is the late fees. I.e. in BNM's secular, the late fees is going to be percentage of the outstanding balance (IIRC - 1%) or a minimum of RM5, and no longer RM5!

It is an initiative by BNM like explained by bioweapon83.
*
I see. What about those who pay on time but just the minimum payment?
cute_boboi
post Dec 26 2007, 01:44 PM

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Doesn't affect me. I pay in full every month. thumbup.gif

funnyTONE
post Dec 26 2007, 01:54 PM

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So it can be like a double edge sword laah....

good for some, bad for most... :sad:
TStishaban
post Dec 26 2007, 03:12 PM

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The interest rate change is one thing, but what about the interest free period? The way I understand the statement by MBB is that I pay interest from the day of purchase (ie. it's posted to the account) instead of from the statement due date?

If this is true, then the banks are making money from two sources, the merchant (2.5% fee) and the consumer (interest).


kevler
post Dec 26 2007, 05:34 PM

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prefer pay teh card on time ..if we use 1000 ringgit , just pay in full ...then we will safe from interest . Me also fed-up with Maybank.


How about Bank Islam's credit card ?...i heard they provide more flexible payment and above of all ...NO interest .



DDSFan8
post Dec 26 2007, 10:18 PM

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applies to all banks la. Citibank also got but Citibank at least explain in detail
SUSDavid83
post Dec 26 2007, 10:29 PM

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The standard rate is 18% p.a or 1.5% p.m

By the way, I'm wondering on how Maybank derived the below figures posted behind their credit card bill:

Outstanding amount (retail transactions)- Finance charge - Repayment period

1. RM 500 - RM 2.22 - 30 days
2. RM 1000 - Rm 4.68 - 30 days
...
...

I thought the simple calculation brings us (by taking 1 as an example) to:

1. RM 500 with 1.5% p.m at 30 days - RM 7.125 (after pay a minimum of RM 25)

Anybody kind enough to explain why there's a difference? Thank you.

This post has been edited by David83: Dec 26 2007, 10:30 PM
jack2
post Dec 27 2007, 02:54 AM

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QUOTE(tishaban @ Dec 26 2007, 03:12 PM)
The interest rate change is one thing, but what about the interest free period? The way I understand the statement by MBB is that I pay interest from the day of purchase (ie. it's posted to the account) instead of from the statement due date?

If this is true, then the banks are making money from two sources, the merchant (2.5% fee) and the consumer (interest).
*
You are correct.

How about other banks? Are they calculated on statement date or the date the transaction was posted?
Aeon_Clock
post Dec 27 2007, 09:04 AM

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wow...its actually making us pay in full?
anyone got link to Citibank's site? Where they explain this system.
DDSFan8
post Dec 27 2007, 10:19 PM

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PM me and I will explain how it works
dwijadas
post Dec 27 2007, 10:28 PM

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http://www.hsbc.com.my/1/PA_1_1_S5/content...erest_rates.pdf

I got from HSBC . .

sorry for starting new thread . was too vmad.gif to read before I start a new thread .. its looks hell man ..

close all credit card .. else all go for 0% plan .. hope that wont be wiped out.
ahsin
post Dec 28 2007, 02:53 AM

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ya.. hsbc also got this.. i think all bank will come out soon....
cute_boboi
post Dec 28 2007, 10:44 AM

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Yesterday received similiar notification from Citibank CC.

ben_ang
post Jul 1 2008, 07:35 PM

ITS JINX NOW.POWDER FELL DOWN A WELL
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hmm...frm wat i c here.. i thnk there will be 2 situation..1) bank r getting they debts back more quickly, which mean bank will hav more funds since ppl pay back more n quickly. 2) bank will hav more bad debts since d interest charge more quickly n more, some ppl might not able 2 repay their previous balance, hence it will become interest ovr interest n finallyd ppl cant bear..so maybe there will be more bad debts...

This post has been edited by ben_ang: Jul 1 2008, 07:36 PM
SUSDavid83
post Jul 1 2008, 08:01 PM

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ben_ang, that'll be the consequences and so, your point is?
ben_ang
post Jul 1 2008, 08:10 PM

ITS JINX NOW.POWDER FELL DOWN A WELL
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everybody stop using credit card n bank earn all d money? wahhaha..or bank will giv more lawyer letter 2 ppl?
tinkerbel
post Jul 1 2008, 08:59 PM

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@ben_ang,
I don't get the reason for banks to issue lawyer letters if we don't utilise their service. We live in a free world so it's really entirely up to our choice whether we want to use their services or not tongue.gif
SUSDavid83
post Jul 1 2008, 09:01 PM

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Well, if such circumstance does arise, well, the bank could just easily charge annual fee in case you still want to maintain the credit card. I'm referring to those non free for life based CC.

Asking for waiver could get tougher since your statement shows that you're not an "active" user.

This post has been edited by David83: Jul 1 2008, 09:02 PM
tinkerbel
post Jul 1 2008, 09:09 PM

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@David83,
You're right about getting annual fees waived if the card is not active. However, I think we're talking about the new BNM ruling on interest rates right?!

Has that not oredi been discussed thoroughly? Do we still need to discuss it?
SUSDavid83
post Jul 1 2008, 09:16 PM

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QUOTE(tinkerbel @ Jul 1 2008, 09:09 PM)
@David83,
You're right about getting annual fees waived if the card is not active.  However, I think we're talking about the new BNM ruling on interest rates right?!

Has that not oredi been discussed thoroughly?  Do we still need to discuss it?
*
I believe we have been discussing the new BNM ruling extensively in the other two threads.
tinkerbel
post Jul 1 2008, 09:19 PM

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@David83,
Yeah but that's what this thread's topic is about too, at least from what I read smile.gif
SUSDavid83
post Jul 1 2008, 09:22 PM

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QUOTE(tinkerbel @ Jul 1 2008, 09:19 PM)
@David83,
Yeah but that's what this thread's topic is about too, at least from what I read smile.gif
*
Yes, it should be discussing the new BNM ruling.

Or we could ask the moderator to merge the threads.
tinkerbel
post Jul 1 2008, 09:27 PM

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@David83,
Yeah... or we could possibly close this one? Ah well.. let's just wait and see if there are other forumers who's going to ask the same question smile.gif
chippy09
post Jul 1 2008, 11:21 PM

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I don't know how this bank negara people think...

the intention is actually good but the outcome would be disastrous...l

many people owe bank or couldn't pay up credit card fully is not they want or
don't want, they simply tight in cash

why bank negara would want to penalise them?





tinkerbel
post Jul 1 2008, 11:25 PM

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@chippy09,
Just so that we don't end up like those in the USA?
chippy09
post Jul 2 2008, 12:14 AM

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>Just so that we don't end up like those in the USA?

if it works I dont mind

like communism sounds good in theory...the direct result of implementation caused million of people lost their life
SUSDavid83
post Jul 2 2008, 03:22 AM

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We definitely don't want to end up like credit woes in US.
tinkerbel
post Jul 2 2008, 09:32 AM

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@chippy09,
It's a step BNM took in order to teach us to be financially prudent. Also, it was announced and information was given out by banks at least 6-8 months ago hence U should have took notice then, and not now tongue.gif
chippy09
post Jul 2 2008, 10:09 AM

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tinker

>Just so that we don't end up like those in the USA?

This is a complicated question, in short even if BN imposes
or not imposes the new ruling we won't end up like US

I think BN sucks because in one hand they HAVE this let go policy that allows
all these bank to bombard us with personal advertise in TV, Paper, roadshow
for credit card, loan, balance transfer.....


BN should know the direct result of these of course people are going to owe money to bank, right?

in other hand, BN says "YOU OWE TOO MUCH MONEY, YOUR FINANCE SUCKS, BETTER PAY UP EARLY"

you see what I mean

They allow creditcard/loan flushing over all the people, then suddenly become so concern they want you to
pay or you got to pay even more

SO I AM ASKING WHAT IS THE OBJECTIVE OF BN? IF THEY ARE TRULY CONCERN ABOUT US THEY SHOULD
HAVE TIGHTEN THE REGULATION ON HOW MUCH CREDIT CARD CAN BE ISSUED

BANK IS GOING TO RAKE UP MILLION OF DOLLARS WHILE YOU POOR PEOPLE ARE GOING TO SUFFER
tinkerbel
post Jul 2 2008, 10:12 AM

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@chippy09,
I can understand the sentiments but I'm really in no position to comment as:-
1) I do not work for BN
2) I do not work for BNM
3) I had nothing to do with the implementation of this new rule
4) Heck! I did not even vote for our ruling party
chippy09
post Jul 2 2008, 10:15 AM

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tinkerbel, i am not against you smile.gif

i wonder why BN always sided with banks, and make life of msia credit card holders suffer
tinkerbel
post Jul 2 2008, 10:17 AM

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@chippy09,
Well the rule still applies; if U can't afford it, don't buy it ! biggrin.gif
chippy09
post Jul 2 2008, 01:48 PM

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tinker..we don't life in a perfect world....
tinkerbel
post Jul 2 2008, 01:53 PM

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@chippy09,
Hence imperfection in the systems tongue.gif
chippy09
post Jul 2 2008, 01:56 PM

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there's why bank will bully us small fries....
tinkerbel
post Jul 2 2008, 02:30 PM

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@chippy09,
Ah well... banks are still a biz tongue.gif
chippy09
post Jul 2 2008, 02:42 PM

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think about it

bank is a biz that's true

but bank is an unequal business...not like others, they are excluded from risk

my supplier didn't ask me for IC, income statement, collateral ..bla bla to supply me the goods, they give me 30 days term

my supplier is taking risk to make profits, but WHY NOT BANK?

SO WHY BANK ALREADY ENJOY ENORMOUS ADVANTAGEs SHOULD
BE GIVEN FURTHER POWER...

at the end we people will kena squeeze



tinkerbel
post Jul 2 2008, 02:54 PM

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@chippy09,
U do haf a choice in life - just don't use the banks' services biggrin.gif
chippy09
post Jul 2 2008, 02:59 PM

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tinker it is not about me

it is about bank having great leverage against common people like us


tinkerbel
post Jul 2 2008, 03:11 PM

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@chippy09,
Perhaps we should put ourselves in their shoes? *grins* And it is possible they do haf lots of risks hence the tight regulations?
kemikelx
post Jul 2 2008, 03:46 PM

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QUOTE(David83 @ Dec 25 2007, 11:59 PM)
I have posted this in the credit card thread.
*
Can you please provide the links?


Added on July 2, 2008, 3:53 pmSeems that HSBC's method is different from BNM:

HSBC:
i) Credit card cardholders who pay the minimum repayment due promptly for 12 consecutive months will enjoy 1.25%interest rate per month (or 15%interest rate per annum) on total outstanding balances from the 13th month onwards.

BNM:
For the benefit of credit card users who have a good track record of settling their credit card balances which are due each month, promptly for 12 consecutive months, the finance charge will be reduced from the maximum of 18% per annum to not more than 15% per annum.

So, what is it? Minimum or Full payment to enjoy the reduced interests?

This post has been edited by kemikelx: Jul 3 2008, 04:35 PM
tytons
post Jul 2 2008, 04:12 PM

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i callup maybank earlier..i was told..its best to make payment after each time i swap my card...so...wats the point of hving a card when i have to pay ASAP and not end of the month?

or did i misunderstood the lady?
tinkerbel
post Jul 2 2008, 04:24 PM

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@kemikelx,
In order for U to enjoy the reduced interest rates, ALL U need to do is make prompt payment for X consecutive months. However, if U haf outstanding unpaid balance (after making that prompt payment), U will be charged X interest rate according to the tier U are on.

If this month, Ur interest chargeable is 18% then U will pay 18% interest for the month. If next month, Ur tiered is lowered to 17% then next month, U will pay 17% on outstanding payment.

Clear ah?!
b00n
post Jul 2 2008, 04:27 PM

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QUOTE(chippy09 @ Jul 1 2008, 11:21 PM)
I don't know how this bank negara people think...

the intention is actually good but the outcome would be disastrous...l

many people owe bank or couldn't pay up credit card fully is not they want or
don't want, they simply tight in cash

why bank negara would want to penalise them?
*

Why spend when you can't afford?!....
So if one is simply tight in cash, why spend the money they don't have in the first place?!


QUOTE(chippy09 @ Jul 2 2008, 12:14 AM)
>Just so that we don't end up like those in the USA?

if it works I dont mind

like communism sounds good in theory...the direct result of implementation caused million of people lost their life
*

What happened in the US which in relates to cards? Care to enlighten us?
Btw, most countries doesn't have the so called 20 days grace free interest period that we previously enjoyed.
Also, most countries are also on risk based pricing i.e. the interest rate charged is based on the "risk" profile of the customer.


QUOTE(chippy09 @ Jul 2 2008, 10:09 AM)
tinker

>Just so that we don't end up like those in the USA?

This is a complicated question, in short even if BN imposes
or not imposes the new ruling we won't end up like US

I think BN sucks because in one hand they HAVE this let go policy that allows
all these bank to bombard us with personal advertise in TV, Paper, roadshow
for credit card, loan, balance transfer.....
BN should know the direct result of these of course people are going to owe money to bank, right?

in other hand, BN says "YOU OWE TOO MUCH MONEY, YOUR FINANCE SUCKS, BETTER PAY UP EARLY"

you see what I mean

They allow creditcard/loan flushing over all the people, then suddenly become so concern they want you to
pay or you got to pay even more

SO I AM ASKING WHAT IS THE OBJECTIVE OF BN? IF THEY ARE TRULY CONCERN ABOUT US THEY SHOULD
HAVE TIGHTEN THE REGULATION ON HOW MUCH CREDIT CARD CAN BE ISSUED

BANK IS GOING TO RAKE UP MILLION OF DOLLARS WHILE YOU POOR PEOPLE ARE GOING TO SUFFER
*

When they tighten, consumer complains; and when they relaxed, consumer also complains....so when is the end?
btw, BNM most of the time sides by customers whenever there's any dispute.
Also, with advertisement, does that meant that you have to go for it? i.e. We knew that McD food is not really healthy to us, but we still eat it....anything wrong with their advertisement than? Are you going to start a campaign to bring down McD?

It's all about individual controls. Nothing to do with governing bodies.


Added on July 2, 2008, 4:29 pm
QUOTE(chippy09 @ Jul 2 2008, 02:42 PM)
think about it

bank is a biz that's true

but bank is an unequal business...not like others, they are excluded from risk

my supplier didn't ask me for IC, income statement, collateral ..bla bla to supply me the goods, they give me 30 days term

my supplier is taking risk to make profits, but WHY NOT BANK?

SO WHY BANK ALREADY ENJOY ENORMOUS ADVANTAGEs SHOULD
BE GIVEN FURTHER POWER...

at the end we people will kena squeeze
*

Banks are already taking risk.
They do not know you yet they lend to you.
Your supplier knows you're in that business thus they sell to you.
But the bank doesn't know what you're going to do with the money yet they also lend to you. Is that not risk when they do not know whether or not you can pay them back?!


This post has been edited by b00n: Jul 2 2008, 04:29 PM
chippy09
post Jul 2 2008, 06:40 PM

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>Banks are already taking risk.
They do not know you yet they lend to you.
Your supplier knows you're in that business thus they sell to you.
But the bank doesn't know what you're going to do with the money yet they also lend to you. Is that not risk when they do not know whether or not you can pay them back?!


I think they know you inside out

they know you
1). how much you owe,
2) how much you earn,
3). what is your liability
4). what's your cash flow
5). Where you stay
6). ....


...so you think your service supplier like maxis or astro know you that much?

>But the bank doesn't know what you're going to do with the money yet they also lend to you
in any business, supplier doesn't need to know what you are going to do with the product

>Is that not risk when they do not know whether or not you can pay them back?!
DO YOU KNOW CREDIT CARD BUSINESS IS 100% PROVEN SURE MAKE MONEY, CAN'T MAKE
LOSSES??!!

The worst case scenario is they make lesser profit

WHY YOU THINK BANK WILL BOMBARD YOU WITH ENDLESS PAPER AD, TV AD, RADIO AD?!
Cos bank knows that



SKY 1809
post Jul 2 2008, 06:45 PM

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This type of business (CC) has caused Many Americans to go bust.

Now, could be our turn ( Asia could be their focus now ).

The beauty of it , you take your own responsibility for it.

This post has been edited by SKY 1809: Jul 2 2008, 06:45 PM
chippy09
post Jul 2 2008, 06:54 PM

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QUOTE(SKY 1809 @ Jul 2 2008, 06:45 PM)
This type of business (CC) has caused Many Americans to go bust.

Now, could be our turn ( Asia could be their  focus now ).

The beauty of it , you take your own responsibility for it.
*
it is not just CC

american family has no saving partly because
a significant portion of the saving went to share, unit-trust, forex
, future..they have many investment options unlike us

DONT FORGET USA IS WORLD FINANCIAL CENTER

you have money you can do whole lot of things than
investing in FD or saving


they don't save money in FD like us because the
return is low

plus the policy encourages giving easy credit to
anyone, thus anyone can hold multiple credit
cards, dumping in Other's people money in share
market or property


...like the sub prime crisis




b00n
post Jul 2 2008, 07:00 PM

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QUOTE(chippy09 @ Jul 2 2008, 06:40 PM)
I think they know you inside out

they know you
1). how much you owe,
2) how much you earn,
3). what is your liability
4). what's your cash flow
5). Where you stay
6). ....
...so you think your service supplier like maxis or astro know you that much?
*

If you declare correctly.
If you never, they would reject you because it's a risk they can't bare.
And it's also on all this factor that they determine your credit card's line entitlement.
Same like your supplier example you've given. I doubt that for new customer to them they would give you that much stocks with 30 days credit terms.
What's the exposure of service provider like Maxis and Astro as compared to the banks in giving out their cards?
Few thousands per customer vs few hundreds? And they cut your line if you defaulted 1 month unlike credit card.

QUOTE(chippy09 @ Jul 2 2008, 06:40 PM)
in any business, supplier doesn't need to know what you are going to do with the product
*

It's a general assumptions that you use it to sell. Do you give your customer 30 days credit terms?....I don't think so.
So business conducted between supplier and seller is different from seller to general public.

QUOTE(chippy09 @ Jul 2 2008, 06:40 PM)
DO YOU KNOW CREDIT CARD BUSINESS IS 100% PROVEN SURE MAKE MONEY, CAN'T MAKE
LOSSES??!!


The worst case scenario is they make lesser profit

WHY YOU THINK BANK WILL BOMBARD YOU WITH ENDLESS PAPER AD, TV AD, RADIO AD?!
Cos bank knows that
*

True, but one can always let the bank earn less by not using it or minimize their earnings by paying in full.
It's the general consumer that lets the bank sucks their money out and yet complain about it.
Stupid when you come to think of it no?!

Btw, a general payback period for the bank to start earning from cards is roughly 2 years.
If they tied up to a lot of merchants and promotions, it can well go up to 4 years.

Some business receive their payback in less than 2 years. So card's business might not be that as of you think.
Mortgage loan business by far is more profitable.

 

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