Credit cards | A scam or a tool? | Bitcointalksearch.org

lucates

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Quote from: Dewi Aries on November 13, 2021, 06:46:04 AM

I think who get bad impact of a credit card is someone who actually can't control what they want. Because if that people really can manage their money, with or without credit card they will know which one is important or not. Nowadays not only credit cards, but some merchant allow us to borrow money from them and pay it monthly, it is same with credit card, so with a lot of types of loan offer, it is all depends on us want to use it or not. Once again, we're not forced to created it and choices is all on ourself.

Using a credit card depends on your habits. 'Credit card is a trap' is a generic statement. Lots of people try to generalise everyone's behavior. But the dark side of credit cards is they make us spend more. It increases expenses for discretionary purchases and it asks you to make purchases that you really sometimes do not need. Marketing companies were trying to promote credit cards. They try to offer you services that you do not need in the first place. It promotes caring about bad debts. Simplicity is the best way of being financially free. Money is more about psychology than finance itself. Investment is more important than discretionary spending. Be cognizant of your money.

noorman0

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I'm the same type as kryptqnick, maybe I can answer this too.

Quote from: stompix on November 13, 2021, 07:42:07 AM

Sorry but this is just .....
- you get a new job offer but you don't have a car to get there so and your old job isn't paying you enough to put that much aside to buy one, what do you do?

If I get a job offer without applying (in the sense that they really need me), then I will ask for facilities that support the job such as a rented house or office inventory vehicle (this is common in my country). If I had previously applied for the job, it would have been because I had measured the means for the job and was looking for an alternative solution instead of buying something new which could someday strangle my finances.

Quote from: stompix on November 13, 2021, 07:42:07 AM

- you need a new laptop to ease your work and get more freelancing done but with your old machine you can't get enough projects to afford a new one, what do you do?

Back to the first point, that's something that is not guaranteed. By the way, do you think it's worth it for a freelancer to take installments when they don't know if they're going to get a client next month and so on?

Quote from: stompix on November 13, 2021, 07:42:07 AM

- your house heating is down but you don't have enough money, you need to save it for 5 months to pay upfront, you spend all winter in cold?

Skipped~ I don't live in a country with subtropical seasons, so winter isn't as terrible as this.

Quote from: stompix on November 13, 2021, 07:42:07 AM

- you want to move out but you don't have the money to buy an apartment, you pay rent instead of paying back the loan for 30years?

It's just a wish that I think can be put off, and a credit card isn't the only way.

bakasabo

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Quote from: Lanatsa on August 18, 2022, 06:51:42 PM

You could really benefit out on some case but if you are that wise on seeing those benefits and not only focusing into its negative then you could actually make some use of it for your advantage.

Some people cant really just see these things thats why they would be saying that credit cards are shit but actually this could really save you up into some point or make some advantage if you do tend to get
from other various sources or taking up some loan which it do ends up that spending with credit cards is much more worth.

If you do know on how to make use of it on certain conditions and make out some good calculations then its impossible that you wont be finding it out.

The only advantage of a credit card I see, is the situation when I ran out of money and urgently need to buy food. And still I would try to borrow money from family or close friends, instead of using a credit card. The reason is simple, there will be no fees and in most situations I could repay my debt when I am able to do it, not monthly or person I have borrowed from wont take his money back automatically from my wallet without notifying me. Since you have mentioned advantages - what are they then ?

Lanatsa

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Quote from: Ultegra134 on August 18, 2022, 04:53:31 PM

Quote from: Fortify on August 18, 2022, 02:09:40 PM

Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).

On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

It's easy to consider credit cards as scams, but in reality for the tens of millions of people who use them in many countries around the world they are simply a useful tool to help manage your finances. They are not a scam at all in fact, however they require a lot of restraint and are potentially given to people who shouldn't have them. They actually give a big benefit to any sensible user by offering certain buyer protections and giving you an advance credit line which will cost nothing if paid off in full every month. The ridiculous interest rates they charge are only ever relevant if you do not pay off that bill every month and that is where the trap can lie - the worst approach to credit card spending is thinking you in any way have access to "free money", that is the psychological trap that many people suffer.

That's the trick banks use. At least in the past, they used to mass distribute credit cards, without any background check, luring them into spending money they don't actually own. Especially with installments, it's easy to get carried away thinking that it's only 40-50 euros per month, equally distributing the cost of products, making them seem more affordable than they are. The main reason I got my credit card was to buy my motorcycle without having to pay interest if I were to take a loan, or to avoid spending all my money at once, while taking advantage of any cashback I can.

You could really benefit out on some case but if you are that wise on seeing those benefits and not only focusing into its negative then you could actually make some use of it for your advantage.

Some people cant really just see these things thats why they would be saying that credit cards are shit but actually this could really save you up into some point or make some advantage if you do tend to get
from other various sources or taking up some loan which it do ends up that spending with credit cards is much more worth.

If you do know on how to make use of it on certain conditions and make out some good calculations then its impossible that you wont be finding it out.

Ultegra134

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Quote from: Fortify on August 18, 2022, 02:09:40 PM

Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).

On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

It's easy to consider credit cards as scams, but in reality for the tens of millions of people who use them in many countries around the world they are simply a useful tool to help manage your finances. They are not a scam at all in fact, however they require a lot of restraint and are potentially given to people who shouldn't have them. They actually give a big benefit to any sensible user by offering certain buyer protections and giving you an advance credit line which will cost nothing if paid off in full every month. The ridiculous interest rates they charge are only ever relevant if you do not pay off that bill every month and that is where the trap can lie - the worst approach to credit card spending is thinking you in any way have access to "free money", that is the psychological trap that many people suffer.

That's the trick banks use. At least in the past, they used to mass distribute credit cards, without any background check, luring them into spending money they don't actually own. Especially with installments, it's easy to get carried away thinking that it's only 40-50 euros per month, equally distributing the cost of products, making them seem more affordable than they are. The main reason I got my credit card was to buy my motorcycle without having to pay interest if I were to take a loan, or to avoid spending all my money at once, while taking advantage of any cashback I can.

Fortify

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Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).

On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

It's easy to consider credit cards as scams, but in reality for the tens of millions of people who use them in many countries around the world they are simply a useful tool to help manage your finances. They are not a scam at all in fact, however they require a lot of restraint and are potentially given to people who shouldn't have them. They actually give a big benefit to any sensible user by offering certain buyer protections and giving you an advance credit line which will cost nothing if paid off in full every month. The ridiculous interest rates they charge are only ever relevant if you do not pay off that bill every month and that is where the trap can lie - the worst approach to credit card spending is thinking you in any way have access to "free money", that is the psychological trap that many people suffer.

eaLiTy

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Quote from: bakasabo on August 16, 2022, 03:35:27 AM

~
You dont get it. It is scam (probably), because it allow you to use the money than you have, which makes finish price higher that it is now. Due to credit % and fees, you get same for higher price. If you pay debt with a credit card, you dont pay, you simply postpone it and make it greater. I believe only few use credit card smartly, while many just put another leash on their neck.

If the credit cards is used during an emergency then you are aware of the fees and the higher price tag it carriers while you are repaying them. You have the option to choose the type of card you want. The only problem arises if you are not able to repay them in time. If you are customer that is able to repay the credit card loan on time, there is nothing to worry and it is a safe bet than getting a private loan .

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Quote from: TheNineClub on August 13, 2022, 08:44:32 AM

The banking system itself is fraudalent, so anything that came out of it is to. But that's just something we cane to live with. So cards are just a tool that we use since we allready abide by banking rules. The issue is on the individual basis and how a person uses it, that's where issuses arise.

The real frauds are those criminal who do that act but I think that banks only got a bad reputation because some of them freezes the account of their customers. Still we shouldn't generalize them as there are banks which aren't like that. When you need a money you can also borrow money from them.

When you save money you can also use them and so on. So, let us not only focus on their bad side. Obviously credit card is a tool that is used on atm machines to withdraw cash. Right now there are also credit card and atm's which are powered by cryptos. This makes the life of the crypto users more easier. I don't get it why will someone call it a scam.

paxmao

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Let's put this clear: there is only one way of correctly using a credit card: pay at the end of the month. Anything else is incurring in 22% or more interest rates which will inevitably damage your economy very seriously. There are very little things out there that may give you an interest of that size, so unless you depend on your buy to live (car to go to work) never ever use that type of credit.

Oilacris

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Quote from: Semar Mesem on August 17, 2022, 02:20:56 AM

Many say that credit cards are scams, but I think those who have used credit cards for more than 10 years are fine, but I plan to close credit cards for many reasons, and the main reason is that it makes it too easy for me to shop or go into debt, and make My finances are out of control.

If they were scams then they wouldnt apply for credit card on the first place.Actually its a helpful thing if you are out of cash and there's something you do need to buy and i dont see anything wrong with

that as long you are obliging yourself on repaying on the time it do needs to be repaid so that you wont really be ending up on having big interest or wont really be having headaches later on.

It is really just people arent really paying up attention on paying up to those due dates thats why they are seeing credit cards are scam.Interest arent that big though if you do think and check out
realistically.

Semar Mesem

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Many say that credit cards are scams, but I think those who have used credit cards for more than 10 years are fine, but I plan to close credit cards for many reasons, and the main reason is that it makes it too easy for me to shop or go into debt, and make My finances are out of control.

cryptoyogibo

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Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).

On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

I think it's better to use DeFi for borrowing :-) Especially in a Bear market

Mauser

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Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your take on this? Are you against credit card usage?

I used to like credit cards a lot for travelling, it was a guarantee to get money and pay bills even when other bank cards didn't work. I never used credit cards at home, only when abroad. As long as there is no monthly fee I have no problem with them. Charging a monthly fee for a card that is rarely used seems like a rip off to me. I remember the first time travelling abroad my grand parents gave me traveller cheques and told me I could use them anywhere, which was completely outdated nobody accepted them and I took them back home. After that I got a credit card as emergency from my parents. And now after using it for many years I am not sure anymore, during my last trip to Thailand I noticed that exchanging cash locally was getting much better exchange rates than the bank was giving me at ATMs or in restaurants. It seemed really wierd to pay a fee and get worse rates. I could have saved atleast 120 USD by using cash instead of a credit card. So at the moment credit cards seem the most convenient solution but not the cheapest.

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Quote from: Mario Yamasaki on August 16, 2022, 01:54:02 AM

If a scam credit card will certainly not survive until now, credit card companies such as visa and mastercard continue to grow and now have a business in almost all countries, credit cards can help and I have been helped when I get a late salary and I have to pay debts.

You dont get it. It is scam (probably), because it allow you to use the money than you have, which makes finish price higher that it is now. Due to credit % and fees, you get same for higher price. If you pay debt with a credit card, you dont pay, you simply postpone it and make it greater. I believe only few use credit card smartly, while many just put another leash on their neck.

Mario Yamasaki

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If a scam credit card will certainly not survive until now, credit card companies such as visa and mastercard continue to grow and now have a business in almost all countries, credit cards can help and I have been helped when I get a late salary and I have to pay debts.

Note3

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Quote from: Ultegra134 on November 13, 2021, 03:34:15 AM

What's your take on this? Are you against credit card usage?

I use it but choose a limit that I can afford to pay, this will be a bank trick if we don't realize it but whatever trick we try to do it won't be a trap for us if we use it with common sense.
But in my country what is becoming a trend is that pay laters (it's the same as a credit card but no card is given to be able to use it) are almost in all marketplaces and many have been trapped because they don't use common sense when using them to shop without thinking that they still have to be paid for.

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Quote from: Ultegra134 on August 14, 2022, 04:57:20 AM

Okay, it's been a while since I last posted on this thread, and since someone revived it, I'm going to share my latest experience with credit cards. I recently bought a motorcycle, which I paid half in cash and half with 12 interest-free installments. In that case, I find it really convenient to split the total cost of purchase in 12 smaller payments.

On top of that, I get 3% cashback in a specific gas station brand, which is decent.

I have purchased a motorcycle too using up a creditcard and pay it in full which is far more better or you could really save more or save yourself from interest when you are tending to make amortization or simply
with financing.If you do make out calculations then having interest with credit card on annum basis wont really charge that much which i could say that it does really have that usefulness on situations
like this.Its not really bad to own a credit card if you do know on how to make use on such situations but if you are a person who dont really pay up on the right time then you would
be finding yourself in putting in big trouble because interest on using credit cards will surely put you on deeper debts.

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Quote from: virasisog on August 13, 2022, 04:37:22 PM

Quote from: TribalBob on August 13, 2022, 09:33:28 AM

too complicated to say because there are pros and cons with this credit card, for me a credit card is a tool that helps me when I need something because of an emergency, but here if we use a credit card we have to be more careful in using it because if we don't control it will definitely miscalculation can make our finances minus

Credit cards will only be a threat if being used irresponsibly. It's actually a helpful tool during emergencies especially if we got no one to run to. But if we abuse it in unnecessary things, we could really fall into huge debt. Use it when needed but as much as possible, don't use it when you have cash on hand. Don't purchase the things that you only want.

We do have to be careful when we have a credit card, many negative things can happen when we use a credit card. As you said, we do have
to be responsible for using credit cards, make sure we only use credit card when we really need them. Otherwise, credit cards will make us
more consumptive, sometimes without realizing it we buy things that we don't really need. What's worse, we sometimes even buy something
with a credit card without thinking about the debt that will accumulate afterwards. If our debts accumulate, what happens we will find it difficult
to pay, if it is like that we can experience an economic crisis. So credit cards must be used wisely.

Ultegra134

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Okay, it's been a while since I last posted on this thread, and since someone revived it, I'm going to share my latest experience with credit cards. I recently bought a motorcycle, which I paid half in cash and half with 12 interest-free installments. In that case, I find it really convenient to split the total cost of purchase in 12 smaller payments.

On top of that, I get 3% cashback in a specific gas station brand, which is decent.

Kadal Ijo

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After about 2 years I used a credit card and in my opinion a lot of help, I got a monthly bulletin that offers offers for debt, several times I bought with credit card facilities but this made it difficult for me to pay and could never pay a few installments for 2 months, After that incident I no longer use a credit card.

Topic: Credit cards | A scam or a tool? (Read 1256 times)