The title of the article, with the picture
alongside, certainly attracts attention: “The hottest new plastic on market is
metal.” What is displayed is JPMorgan
Chase’s most recently offered credit card, described as “The high-end,
high-reward Chase Sapphire Reserve Card.”
Apparently the promotion is working, for the demand has been so
overwhelming that the manufacturer ran out of its metallic alloy materials
after just a few days. As you might
guess, its virtues are being extolled over the internet and the Millennial
Generation seems to be clamoring for it.
This particular credit card is touted as a
“high-end, high-fee, high-reward card with a satisfying heft and impressive thunk when you toss it onto the table to
pick up the check.” Apparently this
description has enabled it to become the hottest card on the market just two
weeks after being introduced, despite its equally hefty $450 annual fee. Like so many of the crazes which feed on word
of mouth and social media sites, this promotes the illusion you can enhance
your public prominence and financial stature by the display of an overpriced
commercial appendage.
What seems to be ignored by a large segment
of the public is the actual justification for possessing a credit card. My belief is that a credit card has a single
purpose—a convenience when neither check nor cash is handy. Ideally there should be no cost to the
user. This means no fee, annual or
otherwise, should be assessed. In
addition, when the monthly statement arrives, the full cash balance due is paid
before the date any interest is charged.
If there’s some sort of provision whereby a rebate is credited against
charges incurred, that may be an enticing frosting
on the cake, but it should in no way be a factor in deciding whether to
obtain or retain the card. Just so
you’ll know, such rebate provisions are usually inserted for a single purpose:
to encourage the user to run up charges they wouldn’t otherwise do.
A final thought: This offering by Chase is
merely one more inflated status credit card.
American Express issues the Centurion Card, known as the “black card,”
which is aggressively pushed to susceptible millionaires and celebrities. It’s all part of the prestige game, where
such items as Rolex watches and Tesla autos are hyped as being reserved for the
superior citizen. You need none of
these. In reality, a Timex keeps equally
good time and a Nissan Altima provides similarly fine transportation.
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If you enjoy this weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly Financial Newsletter, as well as my new book, The Road to Prosperity
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