Credit Cards
The Power of a Group of One

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By Patzer
September 3, 2009

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I believe that persons that have made all of their credit card payments on time ( eg 95%) should not have their credit amounts lowered or their rates increased.

95% on time is not all. It's 19 times out of 20. If distributed evenly, that means at least one late payment in any 24 month look back period. If there are two cards, it means at least two late payments in any 24 month look back period. If there are four cards, it means a high chance of 5 late payments out of the 96 payments in the 24 month look back periods. That doesn't look like a top of the line credit report to me.

I believe that persons that have been screwed over by companies that are doing these practices should boycott these institutions by joining forces in groups and letting them know that they can't screw over their own customers and get away with it.

While I can't claim to have been screwed over by any credit card company that I still do business with, I have taken the precaution of joining such a group. It's a very exclusive group, and it has membership requirements. The requirements are:

1) Members of this group must never charge anything that they could not pay cash for on the date the charge was made.

2) Members must maintain sufficient liquid cash to retire all outstanding credit card debt on less than a week's notice if necessary.

3) Members must pay statement balances in full by the due date, avoiding all interest charges and late fees.

Being a member of a group like this gives me a very strong negotiating position with respect to the credit card companies. If a card issuer changes terms and conditions in a way is unacceptable, it loses the group's business. If the entire card industry were to change terms and conditions in a way that is unacceptable, the entire industry could lose the group's business. So far, this negotiating position has motivated several members of the credit card industry to maintain T&C that the group finds acceptable.

This group is so exclusive, it only has one member--myself. I believe, however, that there are other posters on this board who have joined similar exclusive groups with equally stringent membership requirements and equally small group size.

The best thing about being a member of a group like this is, I don't have to convince anyone else to join to get the full benefits of the bargaining power! What a deal!