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In the past when I've gotten a late fee of $29 from credit card companies due to my check arriving a couple of days late (2-3 times over 10 years), I've called up to complain, threatening to cancel my card and they've apologized and removed the fee. Last month the same thing happened and when I said I wanted to cancel my card, the agent agreed right away and canceled it. Poorly trained phone agent or new policy?

Carrying a balance to improve your credit score is a myth.

And for smidely, I don't see what's funny. I have 5 credit cards, I pay off my monthly bills in full every month. I get 5% cash back for gas and grocery purchses, I get Amazon coupons from American Express, I get essentially free money for 30 days... and no more pennies in my pocket!

Imagine if you loan $100 to a friend and he promises to pay you back in 7 days. You'd naturally freak out when your friend disappears for 2 weeks- which is what the credit card companies do- they ding your credit score, they charge you fees. Credit card companies are not your parents- you cannot just pay them back whenever you want to.

I've never heard of keeping a zero balance on a credit card as a bad thing! My wife and I have always kept zero balances on our cards and our credit rating is very good. We bought a house in in 98, had no trouble getting a mortgage. We recently applied for a line of credit for work on the house. We were told we would probably not get what we were asking for unless our credit score was strong. PS: we got the amount we asked for. We live within our means. I personally haven't carried a credit card balance since the mid 80's. What improves a score is taking out a loan and paying it off, faithfully to completion, thus showing you are responsible and good for the loan. Carrying a credit card debt is a very different thing.

7/Thomas -- thanks for the laugh.

Again, yes all you have to do is carry a small balance every month ($5) and you become "credit-rating available".

There are actually a host of specific purchases that change one's rate and credit score.LAST week's Business Week Magazine stated that credit ratings are now being lowered if one gets a divorce, retreads tires or sees a therapist.

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(Secret History of Credit Cards)

The whole credit thing is insane. The fact that private companies with no public accountability can have such a profound effect on basic aspects of life like buying a house is horrifying. I have no credit cards because I am trying to AVOID debt which is a good thing, but I will be severely punished for it as soon as I try to take out a hoe loan, etc.. There has to be more government regulation.

Set a top limit on interest rates NOW !!!

Before you go back and start teaching your class again, professor, brush up on your "history."

Watch this:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/

PS S. Dakota, not Iowa.

Can you ask your guest about the FDIC cap on insurance for time deposits? For people with retirement funds why hasn't the $100 thousand insurance been raised in over 20 years?

Credit card companies send you a disclosure packet when you receive your card. As long as consumers read those terms carefully, spend rationally, and pay monthly bills on time they will be fine. I don't see why credit card companies are taking all the blame. I think ultimately it's the consumer's responsibility.

Credit card cos incorporate in states that allow high usury rates. States should not have tyo recogniize usurious rates in other states

I heard somewhere that credit card contracts would not and could not hold up in court as they are not exactly legally vetted documents. Can you ask?

It isn't true that paying off your credit card bills in full each month means credit history shows zero balance. This is because the day the credit card company reports your balance isn't the same as the day you paid your credit card balance. So the balance still shows on your credit report.

I knew that baloney about not paying off every month. That is something the credit card company will tell you themselves if you ask. Carry a balance even for a few months. I have the highest credit rating you can have and I make much less than 20K / annum on disability. They try to get me to sign up for new cards daily, I get them in the mail. Amazing and stupid. Of course I don't take them.

Credit scores are one of the most hideous corporate scams used today; it is reasonable for institutions to assess the ability of a person to pay back a debt, but credit scores are error-prone, difficult to fix and (as the speaker is discussing) open to manipulation to shape the market.

Now loansharks don't charge those rates and they go to jail for what they do!!