Everyone is always talking about "Oh don't get an "insert name" card. They are predatory!".
Well, what does that mean to YOU? What exactly makes a CC issuer "predatory"?
Not just the name of the CC issuer, but the reason why you consider it predatory. Be specific.
What do YOU consider a predatory credit card company?
byu/Christymapper71 inCreditCards
Posted by Christymapper71
12 Comments
Luxury Card. They’re not preying on the poorest segment, but on the stupidest segment of middle class. The ones that can afford a decent card, but are too ignorant and lazy to put in any effort into researching it, so they get a card with terrible earn categories, terrible point redemptions, and credits that are difficult to use and do not outweigh the massive annual fees.
Any issuer that deviates from industry norms in terms of fees and cancellation policy/make it difficult for people to find information and/or close out accounts in an attempt to continue extracting fees from people who don’t know better.
Ex: charging a monthly fee, obfuscating how to cancel a card, making it difficult to refund AFs within a reasonable timeframe of closure, etc.
I will start off. My friend recently got an Ollo (Merrick Bank) card. No AF, 2% cash back (via statement credit) and he pays off the statement balance in full so the APR is irrelevant (but admittedly high at 30%). There are no card frills, like Apple Wallet use, virtual card, travel perks, but it costs him nothing to use the card and he gets 2% back in statement credits. Also the CL is low at 1K, but the issuer does say they review for CLIs regularly. He’s had the card for about 6 months. So is this set-up considered “predatory”? I would say no. It’s just a no-frills card and better cards are out there to offer for sure, but not predatory at all IMHO. An argument could be made that if someone carried a balance on this card, 30% APR is high but there are high regarded CC issuers who charge that much as well.
Poorly disclosed fees for things other credit card companies don’t charge for are a pretty clear sign. Credit One, for example, has been known to charge fees for not using the card, increasing your credit limit, applying payments quickly, etc.
Extra fees others don’t charge. Like annual fees on low or no reward cards. These are also companies that tend to seek out the customers with the worst possible credit since they have very few other options. It’s like one of those used car lots that claims they will approve anyone for a loan. In most cases, they will. But they have the worst rates, tons of overhead fees, terms that are complex and layered. It’s basically why people end up paying $900/month for a used Ford Focus. Some credit card companies do similar things because they are targeting (preying on) those with poor credit or lack of options.
All of them of you don’t pay your balance in full every statement. That’s the game.
Tbh all credit card companies are predatory
Just about anything that is offered to you via Credit Karma.
All of them.
Not really predatory, but I hate how you have to have certain cards to transfer points out. Then some companies make it hard or flat out deny you for those cards after points stacking with the lower teir cards. Or as that just me? Looking at you Chase
I consider pressure cards to be any that charge fees that are unjustifiable for the rewards structure of the card. Annual fees are for cash back over 5% or travel cards. A fee for a card that gives 1% back is predatory.
Often these card issuers have absolutely awful customer service. I don’t mean Citi or Synchrony level, but worse. They won’t investigate fraud, leaving you on the hook.
There are often fees for things that should not require a fee like credit limit increases or receiving replacement cards.
These companies almost always prey on sub-prime customers and the uninformed who incorrectly believe these lenders are their only option.
Lending to non-creditworthy customers at usurious interest rates.
We used to have limits on interest rates until the Supreme Court created a loophole for credit card companies to avoid them by moving to South Dakota.