Posted on 07/13/2018 4:39:07 PM PDT by NRx
Savvy credit-card users have forced J.P. Morgan Chase to pony up more in rewards payments than the bank originally projected.
Buried in an otherwise positive second-quarter earnings report Friday, in which the bank announced a record $8.32 billion profit, was the admission that credit-card customers were redeeming points faster than anticipated, resulting in a $330 million charge.
“This is maybe larger than we have seen over the course of the last several years,” said Marianne Lake, the chief financial officer, during a conference call with reporters. “We do pretty regularly review our rewards liability in light of evolving consumer behavior.”
Credit-card issuers scrambling to sign coveted high-spenders have sparked a rewards war in recent years. J.P. Morgan ratcheted up the competition in 2016 with its Sapphire Reserve card, which came with lavish perks including a 100,000-point signing bonus and triple rewards for travel and dining. The initial run of that card sapped quarterly profit by as much as $300 million, the bank said in December 2016.
(Excerpt) Read more at cnbc.com ...
I can pay with a credit card, get benefits from that, and pay the bill in full at no interest cost.
Count me as a JPM Credit Card superuser. I get about ~$3000 worth of travel points on my Chase Sapphire Reserve card/year + Freedom card at 5x rotating cats (and transfer points to sapphire card) between my personal and work spend, and take advantage of the shopping portal for bonus points.
You’ll save yourself a lot of money.
In most instances, credit is trap.
Looks pretty nice from the outside, and then they have you.
Yes. The card gives you a debt, not a credit, so it should be called a debt card.
Yup - no reason to pay interest on credit cards.
“Cash on the barrel head for me. If I can’t pay for it on the spot, then I will live without until I can. “
We get 2% to 6% back on most purchases!
Suck on that!
Credit is the same thing as debt. And if you pay it off every month, there is no monthly interest or debt. You just get free stuff for shopping as you normally would (at least, for responsible people)
” The card gives you a debt, not a credit”
Mine gives me a 2% to 6% credit!
a : the balance in a person’s favor in an account
b : an amount or sum placed at a person’s disposal by a bank
c : the provision of money, goods, or services with the expectation of future payment long-term credit; also : money, goods, or services so provided They exhausted their credit.
Ive had a few free trips to Europe with my Chase card...
Thanks JP ...
I pay the balance on the card each month so I never have any interest
:)
“Straight Cash, Homey.”
Well, JPM offered me a 12 month 0% cash advance so I snapped up $9K that will save me about $350 elsewhere. I’ll shed no tears for JPM, thank you. My understanding is that they were given quite a bit of government largesse in the form of zero interest loans circa 2008 and for a decade have been able to borrow at near nothing, arguably at the expense of depositors who’ve eaned that same near nothing for that same decade.
In 2016, JPM stock was $53 and Jamie Dimon announced he was buying his stock. (easiest stock trade in recorded history) JPM stock is today $106, exactly double that, despite being down from $112-114.
Again, I shed no tears for JPMorgan.
Yep, I pay my CC bill 100% EVERY time.
Never a Penny of Interest.
Got > $200 cash back to redeem too. :-)
Mrs Spokeshave doesn’t believe in credit cards. ,buries the money in a tin can somewhere in the garden.
Gee, so they only made 8.02 profit for the quarter. They’re doomed.
Get a credit card.
Use card to get metal detector from Amazon
Use metal detector to find cans
Pay off credit card immediately with money from cans so Mrs. Spokeshave doesn’t see money missing from bank account.
Blame the neighbors dog for holes in the garden.
But then you don’t get the satisfaction of shaking your fist and saying “I pay cash on the nail for everything!”
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