Premium Credit Cards - are the companies just scamming us

[Page]

I am puzzled - they have started giving customers premium credit cards - what that means in terms of the customer I am not even sure - but then we are being charged a higher %

Is it just a cc "scam" is it possible to say no to them but yes to others (of course) ?

 

[benjamin_c]

By premium credit cards do you mean things like Amex Centurion and the other "black" cards on offer? they dont just have high % they have crazy anual fees, like £2000 a year :O

I think they have high percentages because most of the people who have such cards pay the ballance monthly and they pay the fees because the cards make them feel special and important. Premium cards are becoming a fashion accessory to a lot of wealthy people. If you need a good credit card and can't afford to clear the ballance each month then the Barclay card simplicity is the best with a rate of 6.8% but personally i prefer to use rewards cards for normal purchases and 0% deals for the odd purchases i want to spread the cost over a period of time.

 

[Page]

Essentially they seem to have been foisted on me with no say on my part.

I do not even know what they are but I am paying an extra 0.7% and I am not getting any benefit.

The customer might be - such as cash back based on purchases (?) - but why should I pay towards that?

If the credit card companies want to then that is their business.

 

[benjamin_c]

If you don't like the deal you're on then pay it off and move to a new provider, if you have a good credit rating then get one of these http://www.barclaycard.co.uk/personal-home/cards/platinum-hero/simplicity/index.html

and then transfer your outstanding ballance if you wish. easy problem to solve.

 

[Page]

I am happy with the deal EXCEPT for this new addition of these new premium cards. Which seems to have come stage left and been foisted upon me.

I assume they are all at it but maybe not ??

 

[benjamin_c]

I am happy with the deal EXCEPT for this new addition of these new premium cards. Which seems to have come stage left and been foisted upon me.

I assume they are all at it but maybe not ??

I'm not quite sure what the problem is :| in their T&C's it will say something to the effect of "we may alter rates and conditions at any time ect ect" always read the small print..

 

[Page]

I'm not quite sure what the problem is :| in their T&C's it will say something to the effect of "we may alter rates and conditions at any time ect ect" always read the small print..

Gawd.
(Do you have a mobile phone contract - have you read the small print - what would you approach attitude be if they trebled your prices. What about your electrics and gas and ... and ...)

Yes of course it will - but I cannot then predict what that means in advance nor when it happens nor do i have to be happy nor do i have disregard the changes.

Hence the forum post trying to learn a bit more about it and what is happening to others out there.

 

[benjamin_c]

If my phone contract doubled in price i would accuse them of breach of contract and then the contract would be over, if a company fails to provide what i want at a reasonable price i switch, i do read the small print. there's no real problem here, you either carry on paying the price they set or you move to a different provider, they are your only 2 options, or maybe you could contact them and see if they will re-evaluate your rate "which they are unlikely to do" or you could get rid of all credit cards and just use debit cards then you won't have such problems.....

 

[OldWelshGuy]

Page, have I got it wrong, or has everyone else got it wrong or have i got wrong what everyone else is saying?

I THINK you are saying that people who BUY off you using these cards cost you extra as a suppl;ier, is that right?

 

[benjamin_c]

Page, have I got it wrong, or has everyone else got it wrong or have i got wrong what everyone else is saying?

I THINK you are saying that people who BUY off you using these cards cost you extra as a suppl;ier, is that right?

That explains the confusion, i was thinking he was a credit card user, i didnt get that he meant the merchant fees. :redface:

 

[Page]

I THINK you are saying that people who BUY off you using these cards cost you extra as a suppl;ier, is that right?

Yes - sorry if I worded it poorly

I do not even know how we can tell in advance that it is a so called premium card nor really what one is.

The sums have been low so I have let it go since it was not worth the time but if they have found a new way to charge us more you can be rest assured there will be more and more of these cards starting to appear.

So I like to start thinking and getting the knowledge

 

[Astaroth]

Firstly, if your looking at true premium cards (Black cards) then dont look at the APR as these have to include the annual fees hence why the NatWest Black card has a 51.8% APR.

You need to look at the complete package. Is it worth it for you? Looking at the NW Black as an easy example you are also getting European Greenflag breakdown cover, Priority Pass airport lounge membership, DirectLine HomeEmergency cover etc etc

The "problem" with these add ons is that many of them are common and so you may well be getting home emergency cover from your packaged bank account. If your earning over £75k (as required for NW Black) then you may well be buying a new car every 3 years or so and so always have breakdown cover from the vehicle manufacturer etc. You probably travel business class fairly often and so already have access to airport lounges etc

I have to say that the "best" lower leve premium card I have had was a corporate card, got all the perks like free room upgrades etc but didn't have to pay the annual fee