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Are "Precious Metal" Credit Cards Worth It? -plus- You're Not Really Paying An Annual Fee On One Of Your Credit Cards, Are You? -plus- How To Get Your Credit Card Company To Waive Fees/Lower Interest Rates -plus- Lobbyist Pressure Moving Thanksgiving Day? (It Really Did Happen Once)
Thanksgiving Day: November 28, 2002
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Dear Ben: It's always been my understanding that "precious metal" credit/charge cards were an unnecessary expense. But I thought I heard you say recently that we should pay the extra amount annually...is this right? My "regular" Visa card has come through for me with no problem.
T.G. via e-mail
Dear T.G: You misunderstood what I said. "Precious metal" credit or charge cards: Gold, platinum and now, titanium cards usually promote additional benefits for their cardholders, but I never advocated paying for them. You probably came in half-way through my discussion about one of these additional benefits, like the $250,000 accidental death insurance policies frequently offered to consumers who use their card to purchase airline tickets, for example. Buyer protection plan/extended warranties that insure merchandise purchased with some "precious metal" cards is another perk. These plans promise an extra layer of protection for consumers against theft or product malfunction. But these added services can come at a sometimes hefty price: After surveying the latest side-by-side credit/charge card comparisons on www.cardtrak.com it's obvious that these companies will charge whatever they can get away with.
Frankly, I was surprised to find the huge number of banks that offer "no annual fee" platinum cards...but then there are others that are pretty proud of their sliver of plastic, and charge as much as $135 (that would be American Express' Delta Skymiles Platinum Card) annually for the "privilege" according to their latest on-line charts. Spend some time investigating what's out there, since one of the many comparison grids posted on Cardtrak's website illustrates all of the cards offered, interest rates and annual fees charged-as well as the issuer's willingness to waive these fees. Another interesting (and new) comparison chart shows the countless incentive deals being offered by the credit/charge card companies: From air miles to dollars or percentage-off savings, it's quite an eye-opener.
By the way: I've carried my share of platinum and gold cards for years and refuse to pay a fee for any of them. When an "annual renewal fee" charge pops up on my bill, I call the "Billing Questions?" 800-number (located somewhere on every monthly statement) and give the customer service representative an opportunity to flex their cardholder relations-muscles and keep a good customer [me!] from defecting. All you've gotta do is ask: "I'm such a good customer and get so many "No Annual Fee" offers in the mail every week, you're not really going to make me pay $50 a year to keep your card, are you?" is my usual line that works. Once they've backed down on the fee, take a shot at getting them to lower the interest rate while you're at it. Unless you're receiving an added benefit (like air miles) you've got a 50-50 shot at getting your interest rate knocked down a few points for the next 6-12 months.
Dose of Dover For The Week: We've been accustomed to Thanksgiving being celebrated on the fourth Thursday of November, but it wasn't always the case. When Abraham Lincoln was president in 1863, he proclaimed the last Thursday of November as national Thanksgiving Day. But in 1865, Thanksgiving was celebrated the first Thursday of November, because of a proclamation by President Andrew Johnson. And since things obviously weren't confusing enough, President Ulysses S. Grant chose the third Thursday for Thanksgiving Day in 1869. In all other years (until 1939, anyway) Thanksgiving was celebrated as Lincoln had designated, the last Thursday in November.
But in an example of lobbyist influence to come, President Franklin D. Roosevelt moved the holiday back a week, to the next-to-last Thursday of the month in 1939 because of pressure from the National Retail Dry Goods Association. (They wanted to extend the Christmas shopping season). After two years of confusion and complaints and an admission that his 1939 decree had caused problems, President Roosevelt finally signed legislation establishing Thanksgiving Day as the fourth Thursday in November, returning it to this date in 1942.
Thankfully, Congress introduced legislation to ensure that future presidential proclamations could not affect the scheduling of the holiday, allowing Thanksgiving Day to fall on the last Thursday in five out of seven years.
Incidentally: 91% of Americans will be eating turkey today.
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