Credit Cards

[KFC911]

Their are huge profit margins built into CC verses a debit....huge, even if everyone paid in full each month on a macro level...that's "gravy" from the idiot masses...no one on this thread. My CU debit fraud protection has been fantastic....for years. A debit is my cash machine day-to-day as needed. I don't spend doodly squat on a damn card if ya don't count that .

Search the archives on CC and me....eff 'em

A cash cow biz....moo

[wdfifteen]

Originally Posted by KC911

Their are huge profit margins built into CC verses a debit....huge, even if everyone paid in full each month on a macro level...that's "gravy" from the idiot masses...no one on this thread. My CU debit fraud protection has been fantastic....for years. A debit is my cash machine day-to-day as needed. I don't spend doodly squat on a damn card if ya don't count that .

Search the archives on CC and me....eff 'em

A cash cow biz....moo

Please repeat in English.

[Rick Lee]

If your credit card does not have an annual fee and you always pay on time, never incurring any interest, then the cc company makes all their money on the merchant fees.

If you pay an annual fee, they still make most of their money on the merchant fees because they generally give a decent benefit in exchange for the annual fee.

If you pay interest because you carry a balance, they make money on both ends - your interest and the merchant fees.

AFAIK, Amex can offer huge rewards for their high-annual fee cards because they don't have to pay interchange to any bank. Most Visas and MCs you see are branded by some other bank - a big national one, your local credit union, whatever. Amex is their own bank. So they collect every dime of the cardmember's annual fee, monthly payments and the merchant fees.

If you pay an annual fee for a card and don't use the rewards, you are throwing money away. I get a free flight to Europe or Asia once a year out of my Amex MR points. The card costs $450/year, but I use other benefits from that card which offset that fee before I even touch my MR points to book personal travel.

[KFC911]

Originally Posted by wdfifteen

Please repeat in English.

Rick gets it....

There is virtually no risk to debit card use, in my experience any more...for ME. When debits first appeared....a transaction would cost the merchant a can of soda....a CC 4% (back then) of the purchase price...

Things have changed some....they milk what they can out of everyone to pay all those salaries. They are just tools....Craftsman vs Snap...Amex

[speeder]

I use a CC and two or three debit cards, all are VISA or MC and have full fraud protection. I pay off the CC every month and get great cash rewards from it when using it to purchase gas, groceries and something else I can't remember. There is no risk of fraud.

Still, I am cautious and do not keep a lot of $$ in checking accounts linked to the debit cards and I have no online banking activated w the bank that holds large sums of my $$. I do have online banking w BofA but I keep minimal $$ in that account.

Credit, managed intelligently, is how wealth is created. You never, ever want to use your own $$ when you can use someone else's. It's all about leverage.

[wdfifteen]

Originally Posted by speeder

I use a CC and two or three debit cards, all are VISA or MC and have full fraud protection. I pay off the CC every month and get great cash rewards from it when using it to purchase gas, groceries and something else I can't remember.

Did you happen to purchase it in Thailand?

[tabs]

Originally Posted by Sooner or later

You have a link to support?

Real time debt clock do the math

Total assets of the US 138T, total debt including accounts payable 196T.
73T is interest bearing.

So it is worse than I thought.
If you want to freak out look.at the extrapolation of debt at current rates in 2023.

I have said 2022..no real reason. Just an intuitive time frame.. The subconscious does the calculations and a number comes up.

[tabs]

You folks like most Americans are jerking yourselves off.

[ckelly78z]

We generally pay cash for anything inside of a store, and use the checking acct. debit card for gas, takeout, and ordering online. We only put large purchases like appliances, and trips on a credit card, and usually have it paid off in a month or two.

No mortgage, no car payments (all paid off), and 20% into the 401K.

[KFC911]

Originally Posted by speeder

....

Credit, managed intelligently, is how wealth is created. You never, ever want to use your own $$ when you can use someone else's. It's all about leverage.

Methinks everyone on this thread is sharp as a tack.....of course you are correct....if one WANTS that path. I never, ever have been tempted....debt-free (minimal use of debt leverage past 40), pays as I go....that gave me leverage too....just a different kind. Lots of ways to skin a dawg....YMMV....mine does

[KFC911]

Originally Posted by tabs

You folks like most Americans are jerking yourselves off.

Can't read this post....blindness fer years

[javadog]

I don’t think Credit Karma is even remotely accurate.

[rfuerst911sc]

I have 12 credit cards , I use a new one each month to pay off the previous month's card is that wrong ? Of course I am kidding , credit card usage has different stages in my opinion . When you are young you need to establish " credit " and a card is a good way to do so . However it is VERY easy to get behind and create a mountain of debt . Then you start a family and money just seems to fly out every window/door/crevice it's tough to keep up . Then finally ( hopefully ) you reach a point where you get to be debt free and ride that wave into the sunset My wife and I are debt free , both retired and have done well for ourselves . We have ONE credit card which I have had for a very long time . Paid in full every month .

We have one Home Depot card that we use for large home type purchases , it is only used for large purchases to take advantage of 12 or 24 month no interest rates . We monthly budget a set payment to make sure all is paid off in time . Works for us . As a matter of fact we bought all new appliances for our retirement house when we moved in and next month is the last payment all interest free . We may have HD give us an estimate for a whole house backup generator , again if we pull the trigger will take advantage of the 0 % financing . Could we just pay for it in cash ? Yes we could but why ?

[widebody911]

I too pay everything I can with a credit card, which gets me anywhere from $25 to $100 cash back each month, and then I have automatic payments set up so I don't even risk paying interest. Occasionally my bank has some special deal where I get double cash back, and I use that opportunity to make a bigger purchase or pay off my insurance for the year, etc, although they haven't done that for a while

[GH85Carrera]

I have two credit cards. One is for my personal on-line purchases, and big ticket items. The other credit card is for my business use. Bot are set up to automatically draft the statement balance on the day it is due. No chance of forgetting to send money that way. Bot cards are no annual fee, and both earn cash back. It is a win-win for me. 100% free credit card use, that actually pays me to use it more. I use my debit card for local simple purchases. I have to use it at least 10 time per month to earn the special rate for interest on my checking account. My credit union pay me 3.5% interest on the average balance in my checking account. Besides the 10 debit card uses, I have to do on-line bill pay, which I do with all my utilities, and then receive a EFT at least once per month and my company draw (pay) is done that way anyway.

I know some people that refuse to have a credit card. With all the Amazon or Pelican purchases, I can't imagine not having a credit card for that. Whatever, if someone does not want a card, fine, no skin off my nose.

[javadog]

You can get a free report from each credit agency once a year. Other then that, I don't know.

[flipper35]

Originally Posted by Captain Ahab Jr

Just reading Jeff's post about being asked for a credit card while paying cash which got me thinking......

A simple debit card has worked for me for years now, I've had no problems booking rental cars, hotels, buying stuff online, filling my gas tank etc

Guess I was brought up and live the old fashioned way by spending within my means, saving up to buy stuff or not buying it at all

Anyone else on here able to get through life without a credit card?

When I was at a tech conference Frank Abingale was one of the speakers. He recommends getting an ATM (NOT debit) card and a credit card. Pay the card off each month. Never use a debit card. The liability and protections for your account are similar, but the route you go to fix things is significantly different and sometimes not feasible with a debit.

[cabmandone]

Originally Posted by tabs

You folks like most Americans are jerking yourselves off.

Only on days that end in y.

[wdfifteen]

Originally Posted by javadog

I don’t think Credit Karma is even remotely accurate.

You can go straight to Experian, Transunion, and Equifax free once a year. Who needs to take the temperature of those dubious determinations of their credit worthiness more than once a year anyway? They do dream up credit scores which you have to pay to see. Pretty shady business if you ask me. They collect your personal information, come up with some arbitrary evaluation of it, and then charge you to see what they think of you. And then we have outfits like Credit Karma, who will sell you even easier access to this totally fictional information. Buncha crap if you ask me.

[Alan A]

Well that fictional number, unfortunately, determines things like whether you can get a mortgage. There are also some industry verticals that use it to determine whether they will offer you employment.
So work of fiction or not, cash, credit or debit user, it can still affect you materially.