I don't have any fees to use my credit card, and I pay full balance each time so I don't get any interest. How do they make money off of my account?|||They don't make a dime off of you which is good for you, bad for them. In fact, some card companies are slashing credit limits or instituting "membership fees" for people who either pay in full monthly or don't use their cards a lot. Damned if you do, damned if you don't.|||They don't make any direct money of you, but they don't lose any and there are a lot of people who can't or don't pay everything off and the banks make a lot of money from that. So in a way they want you not to pay it off, or to make a mistake. Although if too many people do that it's bad too, that happened a lot recently because people lost a lot of money because their houses went down in value and they couldn't pay off their credit cards, which was bad for the banks because it was too many people who didn't pay and couldn't. But when a certain number of people don't pay it's actually good in a way (for the banks). As far as I know.|||They won't make any money off you unless they charge a monthly or annual fee for having the card. They are hoping you make a late payment or use one of their "convenience checks" (a cash advance) so they can tack on fees. If you pay your balance just before the due date it is better to pay the "minimum payment due" earlier in the month so that you aren't penalized if your full-balance payment gets screwed up and doesn't get to them on time (mail delays, etc). Paying online is more reliable (direct debit from your checking account to the credit card account).
The credit card companies make money from the merchants that you buy your goods from. When you buy that DVD or pair of jeans and use your credit card the store has to pay Visa or MasterCard something like 3 percent of the transaction amount. That is why sometimes you can get a better deal on things if you pay cash.
Finally, GOOD FOR YOU for being responsible with your money! You are in the minority!|||They get a % from the company who took your payments (Nordstrom, Grocery Store, wherever you used it), usually this is a few %, also some companies charge a yearly fee. Or they just hope you mess up, or you leave a revolving balance|||When you use your card, they charge the merchant a fee.
The don't make any money off of you if you pay in full each month and do not have an annual fee.|||They don't. What makes you think that they do?
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