Yeah, you do. How else do you think the companies stay afloat?
POLL: How many credit cards do you have?
- Thread starter Mr. Laser Beam
- Start date
Yeah, you do. How else do you think the companies stay afloat?
^ What exactly are you talking about? 
Well right, and obviously many people end up doing just that. But it's not a requirement for every individual with a credit card. Those with enough money in their bank account who pay their bills in full on time are generally not going to rack up interest or fees. That's why I said I didn't think it was necessarily irresponsible, as long as you're not exceeding what you're willing to part with in your bank account.
^ What exactly are you talking about?
Credit card companies exist by allowing you to purchase something immediately and then pay it with interest and fees later. Simple enough.
That means you will be paying more than if you took money from your bank account and simply bought whatever it was.
If you pay the full balance every month, as I do, the interest and fees don't kick in at all. The only time I have EVER had a fee was for making a purchase in non-USD, in a situation where sending cash or a check would have been absolutely, 100% impossible. Otherwise, the credit-card companies haven't made a cent on me.
It occurs to me that this discussion about credit card use is equivalent to discussing whether McDonalds is less bad for you if you only eat it once a week instead of every day.
It's still McDonalds. Credit cards are still at the drongo end of consumer finance.
It's still McDonalds. Credit cards are still at the drongo end of consumer finance.
Which is why you should pay the balance off each month.
I really don't think that this is true.
^ What exactly are you talking about?
Credit card companies exist by allowing you to purchase something immediately and then pay it with interest and fees later. Simple enough.
That means you will be paying more than if you took money from your bank account and simply bought whatever it was.
This is only true if the credit card in question doesn't have a grace period, and every card I've ever used has had one. So, if you pay off the balance every month, you never pay one penny more than the original purchase--no interest charges. There are also many cards that have no annual fees.
And if you're smart, you can keep the money you intend to pay off the card with in an interest-bearing account in the meantime, and actually come out ahead (if only by a few pennies here and there.)
Each of you are free to make your own financial decisions. But I refuse to buy into the credit game. I find it irresponsible and I believe the companies are predatory. Go to a college campus and you'll see them offering bribes. A free pizza if you get a credit card. Never mind you can't afford it. Its all about exploiting greed and impatience.
Even if you personally manage it, the reason the companies exist is to make money off of the poor, the desperate, and the fools.
Even if you personally manage it, the reason the companies exist is to make money off of the poor, the desperate, and the fools.
Interest and fees can stack up, but that doesn't make it a guarantee. All 3 of my credit cards have zero fees and zero interest, assuming I pay them off in full in the allotted time. Hell, my Best Buy card has no fees or interest for 18 months!
Again, if you're smart with your credit cards and aren't charging amounts that you can't pay off, they can actually be very beneficial in building your credit score so you can qualify for car loans and mortgages.
Companies exist to make money, period. It's not their responsibility to make sure their customers can manage their money. If a person can't handle a credit card, they shouldn't have one, but if they do choose to get one, you can hardly blame the credit card company for charging them extra fees if they misuse it.
Good point.
Those who eat ten Big Macs per day every day of the week and THEN blame McDonald's for turning them into Jabba the Hutt are just like those who buy and buy and buy and buy and THEN blame credit cards for their debt.
So, basically, you were called out as being dead wrong by several people and now you're just going to spout rhetoric. Got it.
Zero. I did the whole massive debt thing in college, paid it off, and haven't had a credit card since.
I'm not of those, so I thank them for enabling me to have many free cases of wine, flights and hotel rooms every year.
Also in the UK, the consumer protection is far stronger if you pay for items over £100 with a credit card.
Me neither. I keep waiting for them to recall/cancel my cards for that. They LOSE money on people like us.
While the credit card companies can be predatory, that doesn’t mean a poor or desperate person must fall for the predatory practice. As for the fool, well, “a fool and his money ....” Besides, it used to be that credit cards were difficult to get. Maybe credit should tighten up a bit--not NO cards to people, but actual credit checks. If the credit card company were to check the credit of the person before issuing a card, they might not bother issuing the card.
Credit card companies already do this. If you ever look at the kinds of cards people with bad credit get, they tend to have the following features:
* Annual fee.
* High charges for cash withdrawals.
* High interest rates (>20% APR.)
* Low limits (<$1000.)
* Lots of penalty fees, which are easily exacerbated by the low limit.
They also upsell features like default protection. Say you lose your job and can't afford to pay for a few months. Well, if you pay for the default protection, which works out to a few bucks a month, then you can miss a set number of payments and they'll be made automatically by the credit card company.
Really, though, most people with genuinely poor credit can't get anything better than a secured credit card, meaning you pay the entire credit limit up front. These are a ripoff and only good if you have no other way to build your credit.
I have two cards. One I got when I turned 18, and I almost never use it. The other one I got when I turned 21, and I use it for online purchases. I pay it off in full every month.
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