Remember Credit Card Holders... You Might Be A "Deadbeat" !!!

[WillyT]

In the past, the folks most vulnerable to these shenanigans have been the ones who carried credit card balances -- which, as you well know, isn't a smart thing to do. But credit card issuers have been trying to find ways to profit as well from "deadbeats" like you -- "deadbeats" being the industry term for customers who pay their balances in full, depriving the card companies of profitable interest payments.

From: http://moneycentral.msn.com/content/Banking/P126465.asp


And...

Merriam-Webster dictionary defines a deadbeat as someone "one who persistently fails to pay personal debts or expenses." So by definition, you'd think a credit card deadbeat was someone who didn't pay their credit card bills each month, whose accounts end up getting sent to collections or charged-off or both. Not so in the credit card industry.

The credit card industry, infamous for making up their own rules, says that a credit card deadbeat is someone who pays their credit card balances in full and on time each month. That definition is the complete opposite of the one from Merriam-Webster. So who are you going to trust? Here's why you don't want to listen to what the credit card industry says.
Why the Credit Card Industry Uses "Deadbeat?"

Credit card companies make a large portion of their money from interest and fees paid by cardholders. You only get charged interest when you let your balance revolve - that is, when you carry it from one month to the next getting assessed a finance charge each time. Credit card companies love these cardholders because people who pay interest help increase the credit card companies' profits.

When you pay your balance in full each month, the credit card company doesn't make any money off you. If it weren't for merchant fees paid by the stores where you use your card, your credit card would be a waste of 16-digits. You're not a profitable cardholder, so, to the credit industry, you are a deadbeat.

Link: http://credit.about.com/od/usingcreditcards/a/deadbeatcredit.htm

In case you've forgotten...

:shrug: