Credit cards | A scam or a tool? - page 5.

Fredomago

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Quote from: Stedsm on November 18, 2021, 02:19:46 PM

I'd advice anyone to use credit cards only when they are in their worst emergency or need immediate money for any important purposes. Other than that, thinking of it as a toy to meet your anytime needs is stupid because once expenses are occurred as well as interest gets charged, you'll then be stuck in such a mess you won't be able to come out easily from.

Personal Experienced, I often used my credit cards to pay my groceries. Having another 30 days to save with a lesser interest is doable, but buying unnecessary things for your luxurious lifestyle, that stupidity. Once everything comes out and you can't pay it at the right time, the worse things will start to come, those penalties will suck your money.

You can't do anything, as banks can easily sue you. There's nothing left for you but to pay or be tagged and unable to get another one.

Worse, you can go to jail because of your debt. It's a tool if you know how to properly use it up and if you have good control when dealing
with your cards.

Shasha80

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Quote from: Stedsm on November 18, 2021, 02:19:46 PM

I'd advice anyone to use credit cards only when they are in their worst emergency or need immediate money for any important purposes. Other than that, thinking of it as a toy to meet your anytime needs is stupid because once expenses are occurred as well as interest gets charged, you'll then be stuck in such a mess you won't be able to come out easily from.

That's why we find many people who are stuck with large debts after having a credit card, because they do not use credit cards wisely and correctly.
I agree with you use a credit card only in emergency situations, so a credit card is not a tool to buy everything we want, let alone buying
something consumptive is not recommended using a credit card. Almost all credit cards charge large interest every time we make a transaction,
because credit cards are one of the sources of income for banks. It will be difficult to get out of credit card debt, if we are not careful from the start.
Then get into the habit of buying everything with cash, it will save us from debt. Because debt will only make our life unhappy.

bakasabo

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Those who use credit cards, do you make expenses really on a necessary things or it is just emotional purchase of an item, when you are short of cash or balance on debit card? I just dont get the idea of credit cards. If you have money = you can buy something. I just cant imagine situation, when I am in short of 1-2k (usual credit cards balance) and I had to use credit cards balance. I dont spend more than I can afford. I have friends that can borrow me money (without any interest). And I cant imagine living under pressure of owing someone.

Stedsm

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I'd advice anyone to use credit cards only when they are in their worst emergency or need immediate money for any important purposes. Other than that, thinking of it as a toy to meet your anytime needs is stupid because once expenses are occurred as well as interest gets charged, you'll then be stuck in such a mess you won't be able to come out easily from.

Hippocrypto

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I am not actually against using a credit card but I do not use that. t's not a scam at all, it's essentially a loan you take out at every transaction that is due each monthly billing period. 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.

Silberman

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Quote from: 19Nov16 on November 16, 2021, 06:34:49 AM

I gave up credit card a few years ago, high bank interest is the reason that leaving credit card is a better thing, I think there are many pitfalls on credit cards, they make it easy to credit many things but end up making it difficult for us and a lot of fines are imposed when we are late paying.

I agree, credit cards may have their uses and in the right hands they can probably be an invaluable tool, but the majority of the people do not use credit cards correctly, and they end up paying a lot more money for the same products and services just because they were unable to wait until they could save the money needed to acquire them, and that is the best case scenario as it is not that rare to have people completely ruin their lives and get a huge level of debt through credit cards alone.

terrorJR

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Quote from: paxmao on November 17, 2021, 06:18:00 PM

As most things, they are both a scam and a tool. It is like a gun, if it is pointing your way is probably something you would not like.

Cards are a tool when you use them to buy stuff you need to work or go to work or somehow produce a return or if you make sure you pay everything at the end of the month. If you do anything else, particularly buying stuff you do not really need (really really need) and then pay the minimum... you are going to learn first hand what is that people talk about when they speak of the "rat race".

Besides that, I might be helped a little by things like this because credit cards can be used when in an emergency which you can't avoid. Credit cards can be a tool that helps you make payments in these conditions if it happens that cash is difficult to obtain quickly or is not available but you need something urgently.
Even though there is a small additional fee, it's actually quite worth using it for several times in a forced situation

FanEagle

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Quote from: ?? on ??

Credit cards can be very useful and helpful, but they can also be difficult for yourself later if the person can't control their desires. so people who are allowed to have a credit card are adults who are already responsible for their finances. I have a credit card but I only use it to make payments and receive money. because of my previous activities quite often in receiving and sending money like in paypal or some other financial services so I need a legit credit card that I have myself for this. so I think credit cards are good or bad depending on the person.

It could be life saving for a while as well, for some people at least. My grandmother is sick, she has alzheimer's and my mom takes care of her own mother, it is a very psychologically difficult problem for a "kid" (my mom is 60) to take care of her mother. While having something so challenging both mentally and physically, there is also the added cost, it costs nearly 400 bucks a month just to take care of her and give her all her needs, even just the diapers for an adult costs nearly 100 dollars a month here.

It is really expensive and I do try to pay them as much as I can, pay like 100 bucks a month to them but that is literally quarter of it and not enough at all. But, they have a credit card, and they take out loans and yes they just postpone the debt and that is nothing that is helpful and eventually it will be horrible for them.

At the very worst case my dad will sell his car (and I wish he did, he is too old to drive anyway Cheesy

) and pay all of their debt. However if they can sustain until my grandma passes away then they will not have that cost, and can pay the debt very easily. So, it could be LITERALLY life saving to have a credit card, without that I do not know how they could have kept my grandmother alive.

Lotus

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Quote from: paxmao on November 17, 2021, 06:18:00 PM

It is like a gun

That's a very interesting metaphor!

TelolettOm

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Quote from: Ultegra134 on November 13, 2021, 04:34:15 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?

For myself and maybe most people, credit cards may be a trap. Yess, although it is not easy to get a credit card, but in fact, once we have credit cards, we may turn to a different condition. Sometime, it will trap us to spend more and more money by using the credit card until reaching the limit. And this will influence k how we pay later. Crrdit cards, sweet at first, bad in last and impact.
We must be smart, wise, and careful when ysing a credit cars in order to to drive unconsciously to spend so much money through this

paxmao

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As most things, they are both a scam and a tool. It is like a gun, if it is pointing your way is probably something you would not like.

Cards are a tool when you use them to buy stuff you need to work or go to work or somehow produce a return or if you make sure you pay everything at the end of the month. If you do anything else, particularly buying stuff you do not really need (really really need) and then pay the minimum... you are going to learn first hand what is that people talk about when they speak of the "rat race".

BernyJB

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They're tools, and like all tools, they're useful if you know how to use them, and if the product's quality matches its cost.
In some countries, like the US, credit cards can be great, because their cost is very low (I know somebody is gonna disagree with me on this), and because their usability is very high.
In other countries (like mine) it's the contrary: they're outrageously expensive and not that useful, and the extra money you pay for using them (in fees, overcharges, interests, etc) offsets any benefit their use may provide.
And then you have the user: you can use a credit card to start a business, or you can bankrupt yourself in no time flat by buying something you can't possibly afford, at a time you can't possibly afford it.
If anything, you can say getting a credit card gives you instant power and delayed responsibility. That has the potential to be a great thing, or a great problem.

dunfida

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Quote from: southerngentuk on November 17, 2021, 02:28:04 AM

I've always believed in the products created, but I won't trust the people who use it.
So it is necessary to look at the problem against the user, and of course every relationship of responsibility also has a part in the product. However, I always like to see it in a positive light, and the negative stuff with it is almost like illegal activities and won't matter whether it's good or bad.

Everything on this world which had been created does have its own good and negative side or effects and that do really depends on the certain individual who do make use of it.

To those who hated up credit cards then they are the ones who had experience about paying up huge interest because of past due. Cheesy

If you are an irresponsible credit card owner who do spend up like there's no tomorrow then you would really be ending up on this way.

Ultegra134

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Quote from: Findingnemo on November 17, 2021, 10:48:26 AM

Quote from: arallmuus on November 16, 2021, 05:03:40 PM

Quote from: Findingnemo on November 16, 2021, 08:43:50 AM

Credit cards are actually a gift for the rich and debt trap for the poor, credit card is somewhat helpful in many ways even we get rewards along with complementary things which depends on our membership.

This is false. If you dont really have that much cash saved in your account then banks wont issued any credit cards for you. Even if by any chance if you manage to get one then the credit limit on that card will be pretty small. The complimentary reward is not what makes people want to apply for a credit card, some people are aiming to increase their credit score to increase their credit limit

I don't really think that you need to have certain amount to be saved in your bank account for receiving a credit card but all I know is the credit limits will be based on your transaction history and monthly average balance kind of things and for salaried person it will be easier and they are the real target for this credit card trap.

I don't say people are getting credit cards for complementary rewards but its just a bonus at zero cost for people who never default their credit card dues there is a difference in that.

Probably depends on the country, in the USA, they have credit score if I'm not mistaken, but not exactly sure what it's consisted of. Yesterday, I spoke to a bank representative about inquiring a credit card with a higher balance. I was told that they do background checks on almost all your details (Rent, marriage status, if you owe taxes, how much money you make per year etc.). They can see even if you've missed a single payment.

The reason I want a credit card with a higher balance is to buy a motorcycle with installments (Interest free though), I do have cash in advance, but it feels nice not having to give it all at once.

Fortify

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Quote from: Ultegra134 on November 13, 2021, 04:34:15 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?

The only person who would label a credit card a "scam" is someone who is clueless about the world of finance or extremely bad at handling money. Credit cards can be very beneficial, although the laws and protection that it gives you can vary between country. In some countries it will act as an extra buffer against fraud on certain purchases. It also essentially "loans" you free money over the space of a single card statement which can be very helpful. It should always be paid off in full however, otherwise you will pay exorbitant amounts in fees and you should probably not use one because you borrow more than you can afford. As with many things in life, if you use it responsibly then it can be an excellent facility - just do your research first.

herurist

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Quote from: bitterguy28 on November 17, 2021, 01:49:08 AM

it is never a fraud instead the Credit cards are a test on how we can handle the expenses in right manner.

It is like someone has Lending you a Money when you don't need it right away , but since you have a spending habit then you will be tempt to take the loan and spend this in not so needed things.

credit card are just like that because admit it or not, in some cases this is very Helpful like what you said having a Bicycle for your girlfriend when the budget is really tight .

it all depends on the perspective and how it is used because basically when someone feels burdened and feels cheated by a credit card, maybe they can't finish what they should have done and it actually comes back to the person not the credit card.
This is indeed made to solve something that cannot be paid directly, as for whether people want to use it or not, it comes back to that person because there is no coercion about it.
on the other hand actually for me they are only made to make it easier regardless of whether we want to wear them or not it is our choice

Falconer

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Quote from: ?? on ??

Credit cards can be very useful and helpful, but they can also be difficult for yourself later if the person can't control their desires. so people who are allowed to have a credit card are adults who are already responsible for their finances.

And in the end, credit card seem to be a trap that make it easier for bank to ensnare you with bill and interest when credit card users are unable to control their desire.

I am not one of those who oppose credit card as well as the bank system because there was no easier way to do financial transaction for years until finally bitcoin appeared to help us reduce our dependence on bank. I don't use a credit card at this time because I don't need one but a credit card might help some people who enjoy using it.

Findingnemo

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Quote from: arallmuus on November 16, 2021, 05:03:40 PM

Quote from: Findingnemo on November 16, 2021, 08:43:50 AM

Credit cards are actually a gift for the rich and debt trap for the poor, credit card is somewhat helpful in many ways even we get rewards along with complementary things which depends on our membership.

This is false. If you dont really have that much cash saved in your account then banks wont issued any credit cards for you. Even if by any chance if you manage to get one then the credit limit on that card will be pretty small. The complimentary reward is not what makes people want to apply for a credit card, some people are aiming to increase their credit score to increase their credit limit

I don't really think that you need to have certain amount to be saved in your bank account for receiving a credit card but all I know is the credit limits will be based on your transaction history and monthly average balance kind of things and for salaried person it will be easier and they are the real target for this credit card trap.

I don't say people are getting credit cards for complementary rewards but its just a bonus at zero cost for people who never default their credit card dues there is a difference in that.

Ucy

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I think it's a bit similar to what Universal Basic Income is to future world. You are encouraged to be dependent on the system and spend more than you can afford to repay on things you like.
Something like that would only be allowed in my family if family members will be willing to spend the money on things that are profitable and they will have to know how to make profits from such things consistently. If it's for education, the education must be making them better people with proofs on their good works. If it's for car, the car must be making very useful contributions to the individual, etc. The contributions/profitability should be enough to repay the loan.

I actually haven't used one. I'm not sure I have borrowed money from banks before. I don't really like the idea. I could borrow from people close to me though.

southerngentuk

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I've always believed in the products created, but I won't trust the people who use it.
So it is necessary to look at the problem against the user, and of course every relationship of responsibility also has a part in the product. However, I always like to see it in a positive light, and the negative stuff with it is almost like illegal activities and won't matter whether it's good or bad.

Topic: Credit cards | A scam or a tool? - page 5. (Read 1221 times)