Credit cards should be wildly illegal...

[John Wang]

Fucking idiot, if you're paying the bare minimum balance due, then no sht you're only paying the interest on the debt.

For example If you borrow like 5k, and making monthly 1k payments on it you're paying almost nothing back but the $ owed

That is some super naughty interest!!

 

[mushishi]

Credit brah checking in btw - I use my card for every purchase unless it's something under $10.

You're not dedicated enough, son.

 

[Almighty Angus]

• I only use credit cards with 0% interest on purchases.
• I only use cc for online transaction, on holiday and at social events for obvious reasons.
• I always payback exactly what I've used the following month
• It apparently good for improving credit rating (which is a bit retarded)

Bingo

 

[mushishi]

It's a scam for this reason. Shouldn't those who don't use them and thus rely on money already earned be considered more responsible than those buying shit they don't need on credit? So somebody who never uses a credit card NEEDS a loan or wants to buy a house and their penalized for never using credit before. So in order to have a good credit score you basically have to pay off the banks via your cc interest rates.

Those who use cash have no track record. Those with high fico can be considered financially responsible. Not saying it's right, but that's the thinking behind it.

 

[mushishi]

the whole "credit score" system is ridiculous. when I was 19 and had a full time job for a year I was denied any sort of credit card or loan because I didn't have any credit history. And I couldn't get any credit history because I couldn't get a card or a loan.

of course they have a starter credit card at banks now where you pay like 20% interest per month.

Banks are the worst thing to ever happen to the world and rule every facet of our existence now.

They have secured cards where you pay $200 for a card with a $200 limit. Don't worry about the interest rate; pay off card in full EVERY MONTH.

 

[Pseudo Sane]

I always laugh when poor people can't control their spending and end up having a bunch of maxed out credit cards.

The economic system is designed to encourage people to spend far beyond their means. This traps a lot of financially illiterate people in a bad situation. They are hardly blameless, but we live in a world which encourages people to consume beyond what they can afford.

If you are wise, you won't, but not everyone is wise. Just because someone does something dumb doesn't mean we can't have compassion for them.

That being said, if you can't practice financial restraint, you should probably cut up your credit cards and go full Mr. Money Moustache for a few years.

 

[mushishi]

Amex platinum
75 fee per year, but 3% back on most purchases. I pay off the balance every month, so never pay interest. Get about 500 back a year as I use it for business purchases. I make money from using a cc. Don't care if the proles are too dumb to figure out basic math and finance.

What amex plat has a $75 annual fee?

 

[loyalyolayal]

Don't question autistic people. Just pat them on the head, give them half a cookie and send them on their way.

I've been doing that for weeks. @Roca still wont leave my porch.

 

[Roca]

I've been doing that for weeks. @Roca still wont leave my porch.

It's your fault for feeding me

 

[mushishi]

The economic system is designed to encourage people to spend far beyond their means. This traps a lot of financially illiterate people in a bad situation. They are hardly blameless, but we live in a world which encourages people to consume beyond what they can afford.

If you are wise, you won't, but not everyone is wise. Just because someone does something dumb doesn't mean we can't have compassion for them.

That being said, if you can't practice financial restraint, you should probably cut up your credit cards and go full Mr. Money Moustache for a few years.

I like some aspects of Dave ramsay and Robert kiyosaki teaching, namely living within your means. If you can do that, you're more financially responsible than the vast majority of people.

 

[marioh]

only suckers pay interest.
or poor people.
or irresponsible types.

 

[boingyman]

This is why it's important to be fiscally responsible and if you are in a good financial situation to take advantage of the system and use of credit cards.

Some basics you should do first is.
1. Budget
2. Track spending
3. Pay cc statements in full
4. If you are trying to optimize/improve your credit score, Ideally keep utilization under 10% with a maximum of 20-30%.

Assuming you can do all the above, excellent credit score and no plans to take a significant loan (i.e. home loan), I would then consider optimizing cash back and occasional churning. There has been some great cash back credit cards, but many have dissolved. Here are some good popular ones.

1. Chase Freedom - 5% rotating category; no annual fee
2. Discover It - 5% rotating category (10% for first year); no annual fee
*There are a 1-2 more (I think they still exist), so just research, but above two are most popular. Amex Blue Cash Preferred gives 6% at groceries, but $95 annual fee. If you spend tons, it may be worth it; do the math. Also Costco Citi is great too if you have a Costco membership.

For everyday purchases
1. Citi Double Cash - 2% CB; no annual fee
2. Chase Freedom Unlimited -1.5% points; no annual fee; sign-up bonus
*There are many other 1.5% CB cards, but I rate Ultimate Reward points from Chase much higher than 1:1 cash back.

I won't get into credit card churning or manufactured spending (MS) too much, but if you have no idea I would research. Checkout, reddit, flyertalk, etc. This is how you can a truly take advantage of credit cards. I personally don't waste time MS, but churn a few cc a year, especially since we travel a lot. For example last year was the Chase Sapphire Preferred card. My wife and I both got it and it's like free $3300 after meeting spending criteria (which we needed to do anyways for our upcoming vacation and stuff for our new home).

 

[DIABOLUS]

I love when people who lack self control claim credit cards are life destroyers. Oftentimes these are also the same people who refuse to own one because they "just know" that it would put them in debt up to their eyeballs.

Like, learn some fucking control. Don't charge more than you're willing to pay back in a timely manner.

 

[west42]

What amex plat has a $75 annual fee?

My mistake, it's the blue cash preferred.
They raised it to 95 iirc, but if you call and threaten to cancel(just say discover has a better rewards rate for groceries or something), theyll deduct 20.

 

[freaky]

It's a great tool that can be used as an indicator to separate the financially responsible from the financially irresponsible.

So instead of using my debit card for everything (convenience) I have to first pay with my credit card then transfer money from my debit to CC. A huge waste of time. The bank is banking on the lazy.

Brb fancy plastic iou
Brb some places accept certain ones
Brb random percentage because you made "charges"
Brb "cash back" like giving someone a handful of dirt that's in a giant hole
Brb any financial milestone requires one
Brb same apparatus as a pyramid scheme

The longer it take to pay back the more money you owe because again made up word I n t e r e s t
LMFAO how is this legal for God's sake

It's the same as people going to get a loan every month or week or even day. With credit card, you get rid of that hassle. Credit card companies make money off of poor people who can't afford for themselves. It's also the poor people who have the most credit cards. They make up this believe that you HAVE to use credit cards to accumulate credit scores so you can get a loan in the future for house/car/business/etc.

 

[quatin]

It's the same as people going to get a loan every month or week or even day. With credit card, you get rid of that hassle. Credit card companies make money off of poor people who can't afford for themselves. It's also the poor people who have the most credit cards. They make up this believe that you HAVE to use credit cards to accumulate credit scores so you can get a loan in the future for house/car/business/etc.

Credit card companies make money off everyone. They charge merchants transactions fees. The merchants then pass off that fee to the consumer, making everything cost 2% more than if paid by cash. Credit card companies then dangle this 1% cashback in front of card holders, tricking you into thinking you get money back.

Just doing rough math, the $11.6 trillion was spent on retail sales last year. The credit card companies got $116 billion just from credit card fees.

 

[freaky]

Credit card companies make money off everyone. They charge merchants transactions fees. The merchants then pass off that fee to the consumer, making everything cost 2% more than if paid by cash. Credit card companies then dangle this 1% cashback in front of card holders, tricking you into thinking you get money back.

Just doing rough math, the $11.6 trillion was spent on retail sales last year. The credit card companies got $116 billion just from credit card fees.

ermagod...I always wondered how they make money if we get cash back on everything. What about certain 5% ones? Chase have this 5% CB on random merchandise each month.

 

[Oblivian]

So instead of using my debit card for everything (convenience) I have to first pay with my credit card then transfer money from my debit to CC. A huge waste of time. The bank is banking on the lazy..

Debit cards have very little security compared to credit. You'll have a much easier time with the fraud department of a credit card than a debit card. Also, you aren't getting the rewards. The 2% that I earn on every purchase is plenty of compensation for logging on to the credit card site and paying the balance every month.

 

[freaky]

Debit cards have very little security compared to credit. You'll have a much easier time with the fraud department of a credit card than a debit card. Also, you aren't getting the rewards. The 2% that I earn on every purchase is plenty of compensation for logging on to the credit card site and paying the balance every month.

See, that's another scam. Why are debit card security so shitty? They are the same fucking thing.

 

[jabba the punk]

Brb fancy plastic iou
Brb some places accept certain ones
Brb random percentage because you made "charges"
Brb "cash back" like giving someone a handful of dirt that's in a giant hole
Brb any financial milestone requires one
Brb same apparatus as a pyramid scheme

The longer it take to pay back the more money you owe because again made up word I n t e r e s t
LMFAO how is this legal for God's sake