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They Fall For It26 04 06 14  21
-------- So EasilyIt is surprising how easy they fall for it: a new credit card, that is. In Fight Club (the motion picture) the imaginary character says that the slightly low cabin pressure of commercial airliners affects passenger’s ability to think. Real or not, passengers don’t seem to think that much. The flight attendant said over the Public Announcement system: “Bank of America and US Airways have teamed up to offer you the wonderful opportunity to earn 25,000 miles …”. After the Disney-happy sounding announcement, flight attendants distributed the Credit Card application forms to interested parties. Initially I thought it was another bad taste method that the airline industry is using to save them from financial ruin. But after watching the people in 6a, 6b, 6c, as well as several others in the rows behind me, hurriedly and diligently fill out their credit applications as if they could not wait a minute longer I changed my mind. This is a brilliant idea by the Bank of America (BAC) and US Airways partnership! I am glad I own Bank of America (BAC) shares – today, they even climbed! The flight attendants passed through the cabin collecting the credit card applications no more than 10 minutes after they handed them out. I am sure it was enough time to fill the name, address, social security number, salary, and signature. I am not so sure it was enough to read and understand the terms of the credit card, nor to compare it to similar offers.I could only think about how easy is for credit card companies to sing up new customers. Customers as reckless as the ones I just observed on the flight can be expected to fall into carrying a balance and paying interest. Some may even be expected to fall into great debt and get a Home Equity Line of Credit to pay for the excessive debt: continuing paying interest to the banks (some of them mine) until they are well into their 70’s. After all, what is worse: not having an iPod today or having to work at 75 years of age to pay the creditors? I think they fall for it too easily. NOTE: I do carry two point giving cards: one for business and another for personal expenses. I just think you ought to research your credit card alternatives for longer than 10 minutes! You also ought to give yourself time to understand the little print on the cards, compare interest rates, annual fees, and other caveats. |