Credit cards | A scam or a tool? - page 8.

Ultegra134

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Quote from: Danydee on November 14, 2021, 12:25:58 PM

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

I want to point to the fact of, so, either with credit or debit cards,
In a first side merchant needs to pay fees to become accepting them
In other side when paying with cash there's usually a tax for doing so

So a tool to pump money from the people?
And over onwards, a tool to take control over people money?

Both cards are mean of payment to make our lives more convenient. There's no such a thing as a shop not taking card payments nowadays. It's not convenient nor safe to hold large amounts of cash in your wallet. It's a quick and easy way to make transactions and even withdraw money.

beerlover

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Quote from: michellee on November 14, 2021, 04:32:40 AM

Quote from: Tumanggor on November 13, 2021, 03:21:27 PM

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

What you say is right. We need to be wise using a credit card because the credit card is just a tool and give easiness to us to pay something without using our money but at the end of the month, we still need to that debt to the credit card company plus the fee. Because of the easiness to pay anything we want, we can forget to control the use and make us pay a lot of money at the end of the month. I still prefer to use a fiat or debit card because that gives me an allowance to control the use of my money.

I have never owned a credit card in my life because of this. A cheat that I have is that my wife does have a credit card, I do not use it at all but she likes to use it and she pays it with whatever she earns, the only times we ever had to use it was when we had hospital issues and health issues, which I had to use a few times as well, so I did used credit card twice in my life thanks to my wife, but that's it.

I do not use it on my regular life and our home doesn't get anything with credit card. She just likes to buy shoes, dresses, make up all the things women usually buys and uses her credit card but we always cover everything at the start of the month without a problem, we never go beyond and leave a debt. I handle everything about the house, all the food, all the groceries, all the needs, bills everything and pay straight out of my pocket. It is still a card, it is just debit card that pays from what I have and not create any debt.

teosanru

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Quote from: Ultegra134 on November 13, 2021, 02:49:34 PM

Quote from: teosanru on November 13, 2021, 02:22:10 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?

Trust me if you know how to use a credit card wisely and smartly, it's just free money that the Banks are lending you for 60 days or so. But if you are not financially wise and don't know how to manage your credit cards wisely they will ruin your financial status, not only will you end up paying very exorbitant interest rates but also will be spoiling your credit scores at various instances and not only this you will be tricked into spending much much more than what you have especially if you are being offered the facility of EMI where you can split the expenditure into monthly payments, this mentality of living paycheck to paycheck is really bad and credit cards are the prime reason people get stuck in them.

I know for a fact that most people aren't using them correctly, I've even seen it from my environment. It's definitely not free money, but I get what you mean, via credit cards, you're basically given an interest free loan, provided that you're careful enough when using them. I've also managed to postpone doses, by buying something the last day of the month, right when the monthly bill is issued. We don't have the credit score system here, I've mostly seen it in the USA if I'm not mistaken.

No Actually in my country there is no interest rate or charges of credit card as long as you make full settlement on the invoice due date of your credit card. The banks or the credit card companies earn primarily from the vendors which have POS machines with them they take a percentage on every payment made through them. The only way credit card users earn from their customers is when they skip or defer payments, they even offer to conver the outstanding debt in form of a personal loan and earn interest on that.

fiulpro

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For me personally I do think that credit cards are actually something that might be useful if used correctly, undoubtedly they expect you to spend money that you don't have, but at the end of the day, you do have to return the money as well therefore you have to understand the fact that they are more like you are borrowing money, sometimes it's also very lenient with the interest as well, some of them have like 0% and easy down payment so it might be good for you if you are a student and want to invest in some things, travel as well, it would give you more opportunities. It's not scam perse but it depends on how you use it and when you use it. I do think it might not be the lifestyle of every other person you see here but in some countries it's very essential, for uk you cannot even make VISA payments using your debit cards, you would need a credit card for that.

bitzizzix

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In my opinion, a credit card is a means of payment that makes it easier for us if used wisely and also must understand its use properly and correctly.
and credit cards are one of the conveniences offered by banks to borrow and borrow goods, and but we must remain vigilant when we have a credit card, if we are not wise in using it, it is not impossible that we can get into debt that will never be paid off if we use it haphazard.

Danydee

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

I want to point to the fact of, so, either with credit or debit cards,
In a first side merchant needs to pay fees to become accepting them
In other side when paying with cash there's usually a tax for doing so

So a tool to pump money from the people?
And over onwards, a tool to take control over people money?

Silberman

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Activity: 2534

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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?

Personally I have never owned one precisely because of the points you bring, in the right hands a credit card can be a good way to have some credit just when you need it the most, however if you are the kind of person that saves their money and has investments and you control what you spend with a budget then it is unlikely you are going to need it, however most of the people do not use their money that effectively and as such use credit in general in the wrong way, not realizing that if they could have waited for a few months and buy what they wanted with cash they will save themselves a lot of interests and buy more stuff that way.

Ultegra134

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Quote from: eaLiTy on November 14, 2021, 10:01:55 AM

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

~
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 trick is not over use the credit card and get stuck without repaying them. I know many that used to card during the pandemic and then got stuck because they are not getting their salary on time, but then there are options provided by the credit card company during that period, but then there are many that lost their job and how they are going to repay them if you have taken a huge credit. So be wise before using them and if you can do that, it is a great tool.

The trick is to not get stuck in a loop of purchasing items you don't need, which is extremely common when installments take place. Especially during the pandemic, with shops closed, online purchases covered the majority of transactions. It's best if they are used to cover large bills (electricity, insurance and so on), with installments, as it eases the month's budget.

eaLiTy

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

~
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 trick is not over use the credit card and get stuck without repaying them. I know many that used to card during the pandemic and then got stuck because they are not getting their salary on time, but then there are options provided by the credit card company during that period, but then there are many that lost their job and how they are going to repay them if you have taken a huge credit. So be wise before using them and if you can do that, it is a great tool.

Alisha-k

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Just like everyother thing, credit cards also have their advantages as well as disadvantages, it is true that it is a very profitable tool to financial institutions and most times causes the masses to spend unnecessarily but that only happens if the individual in possession of the credit card isn't mindful of the expenses the make, to own a credit card, you have to be extremely careful as regards what you purchase other wise, you'll only be crediting the financial institutions.

If you plan your puchases and don't spend more than you would be able to refund, also try to pay each debt in full by the end of the month, you'll be reducing the interest rate charges on your card.

geegaw

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Quote from: Tumanggor on November 13, 2021, 03:21:27 PM

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

Unfortunately, most people who use credit cards regularly spend lavishly, especially young people who are too fond of trendy styles and expensive electronics, in order not to feel inferior in front of friends and family, they often buy products that exceed the allowable and affordability of monthly income, the external appearance made them not focus on risks and unexpected occurrences. Credit card is really a perfect tool for banks and stores, one side can increase sales, the other side can increase monthly revenue while users are very disadvantaged and easily delusional due to having a virtual budget ready to cater to their desires

Koro-Sensei

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It solves convenience so for me its not a scam. The problem is when you don't pay it in time and thats where interest goes up and up. But nonetheless, its interest are way higher than typical bank lending so it might suck up your money. Its just up to you to discipline yourself in spending and knowing your limits.

michellee

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Quote from: Tumanggor on November 13, 2021, 03:21:27 PM

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

What you say is right. We need to be wise using a credit card because the credit card is just a tool and give easiness to us to pay something without using our money but at the end of the month, we still need to that debt to the credit card company plus the fee. Because of the easiness to pay anything we want, we can forget to control the use and make us pay a lot of money at the end of the month. I still prefer to use a fiat or debit card because that gives me an allowance to control the use of my money.

Obito

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This depends on your wealth and social status, if you're a middle class or poor like 99% of the population, I think that it's safe to say that credit cards for us is a scam because credit cards were designed not to be paid and that the credit's interest pile high so as to make sure that credit card companies siphon as mucch profit as they can like a parasite they are, no matter how you look at it if you're part of the 99% I think that credit card is going to be a problem for you.

KennyR

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Credit cards were a money making tool in the banking industry. I don't say it never helps, the credit card have served to be life saving for many people. Same time it also have got more flaws on the interest. At times even the people who doesn't want one were also forced to take a Card and they start using it unwanted. Later this itself turns to be a headache for them.

It is a way to trigger the common people to spend money.

RealMalatesta

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Credit is how you get rich normally, but credit cards are not what you are getting rich on, because you do your regular payments with it. If you can get a credit card with near zero rate, then you could spend that, put your money into savings, earn for a month, and take it out paying your debt back. This means depending on where you live, you have made from 0.1% to 2% profit based on where you live. Of course it is tiny, of course is nothing, but if you put all of that into savings back again each month, imagine doing this for 30 years? Or 40 or 50? Then you will accumulate a good deal. Wealth by simply being a worker is not easy, it takes decades and you end up with few houses at best, which is still good but not super wealthy with giant yacth wealthy.

In order to be doing well, you need to take advantage of all these situations and even credit cards. Considering something is cheaper now, and more expensive later, you could literally get into debt now, but could be spending less as well.

Tumanggor

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I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

Ultegra134

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Activity: 1680

Merit: 845

Quote from: teosanru on November 13, 2021, 02:22:10 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?

Trust me if you know how to use a credit card wisely and smartly, it's just free money that the Banks are lending you for 60 days or so. But if you are not financially wise and don't know how to manage your credit cards wisely they will ruin your financial status, not only will you end up paying very exorbitant interest rates but also will be spoiling your credit scores at various instances and not only this you will be tricked into spending much much more than what you have especially if you are being offered the facility of EMI where you can split the expenditure into monthly payments, this mentality of living paycheck to paycheck is really bad and credit cards are the prime reason people get stuck in them.

I know for a fact that most people aren't using them correctly, I've even seen it from my environment. It's definitely not free money, but I get what you mean, via credit cards, you're basically given an interest free loan, provided that you're careful enough when using them. I've also managed to postpone doses, by buying something the last day of the month, right when the monthly bill is issued. We don't have the credit score system here, I've mostly seen it in the USA if I'm not mistaken.

alpamar99

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In fact, this credit card is actually like making it easier for us to buy something in installments in my opinion.
because we are sometimes so affectionate when buying at a fairly high price directly and this of course can be maximized with credit.
because with this we can minimize by paying little by little but for some time.

teosanru

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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?

Trust me if you know how to use a credit card wisely and smartly, it's just free money that the Banks are lending you for 60 days or so. But if you are not financially wise and don't know how to manage your credit cards wisely they will ruin your financial status, not only will you end up paying very exorbitant interest rates but also will be spoiling your credit scores at various instances and not only this you will be tricked into spending much much more than what you have especially if you are being offered the facility of EMI where you can split the expenditure into monthly payments, this mentality of living paycheck to paycheck is really bad and credit cards are the prime reason people get stuck in them.

Topic: Credit cards | A scam or a tool? - page 8. (Read 1256 times)