Credit card reform and Harbor Promenade lights: Consumer Sunday
Reader Mary Ellen Stepowany made my Friday afternoon when she called to say that the lights along the Harbor Promenade were finally lit after dark.
The waterfront path connecting Federal Hill and Canton is a popular destination for many people whether their usual mode of transportation is bike, stroller or their own two feet.
It's been more than two years since street lights were installed along Union Wharf, an undeveloped property, and more than a year since we first mentioned the unlit street light problem in Watchdog. It was determined that although the city's department of transportation built the path in this area (near where Wolfe Street and Thames streets deadend at the water) the developer Larry Silverstein needed to connect the lights to power.
And as we told you in Sunday's Watchdog update, transportation staff worked with the developer to locate the conduits and connect the lights. Stepowany, who can see the path from her home, saw workers at the lights early last week and spotted the lit fixtures later.
Elsewhere in the Sunday paper ...
... we discussed the credit card reform bill. Consumer advocates seemed to think that there will always be credit available to good consumers, and banks will compete for the business of good customers by offering incentives --- although they may not be as lucrative as they have been in the past, with fewer cards that don't charge an annual fee, fewer perks such as airline miles or cash back rebates, etc.
The bottom line: credit cards will still be available, because banks still make money off them, through interchange fees charged to merchants for every purchase as well as interest and penalties.
However, as Chris (Harbor East) said, the reform will probably make it harder for those with limited credit histories (such as young people or recent immigrants) to get credit. Those with spotty records will have difficulties as well --- both side effects that may slow economic recovery.
How do you use credit cards --- as default payment for every purchase, just for large purchases, or rarely? Would you give up your cards if your bank started charging an annual fee or interest as soon as a purchase was made?
Categories: Cheap/Frugal, Credit cards, Watchdog
Comments
Typically I use my credit card as my primary payment method because I find it easier to limit my spending overall. It seems that when I carry cash, or my debit card, I spend more because I see less consequences for using it. For example - the more credit I use, the harder it is for me to pay it off, meaning higher interest payments, lower credit score, etc...There are probably people that are just the opposite though:)
This site is worth checking out before you shop for credit cards - > http://www.creditcards.com/
It gives you a pretty good comparison on the fees, rates, and reward programs for each vendor.
Posted by: Chris (Harbor East) | May 26, 2009 10:04 AM
I use my credit card for gas, online purchases, the occasional dinner out, gifts or big store purchases, and occasionally on barhopping nights. I take out some cash as my mad money/going out money every payday, and once it's gone, I try not to use the card unless I absolutely need to. This method has worked out well for me, since my credit card bill each month isn't ridiculous.
If I start gettting charged annual fees or interest once a purchase is made, I'm dropping the account. I pay my bills on time, and I know the banks aren't making money off of me because of my staying on top of my bills, but I'll take my business elsewhere if these changes go into effect in an effort for a company to make money off of me.
Bruce, thanks for weighing in. Banks also make money charging stores interchange fees for each purchase that you make, so they do have a revenue stream even without annual fees for consumers. -- lfk.
Posted by: Bruce | June 2, 2009 1:12 PM