Uhm This should be required learning. Why Credit Cards Are A Scam - Honest Ads

Nelo Ice · Apr 18, 2021

I have friends who think I'm rich just because I know how to use credit. And really if you're not reckless credit cards are free money and they provide another layer of protection for when you spend money. I use YNAB too so it makes tracking all my spending a breeze. I pretty much only carry cash when I place I go to requires it otherwise I use one of my CCs when at all possible.

Uncivilized Elk · Apr 18, 2021

sNtd said:
A large part of the population is not financially literate and for those people credit cards can be a scam. I don't think the solution is not to get a credit card though, but instead the solution is to get financially literate.

If everyone in the US was financially literate, credit cards probably wouldn't be allowed to exist in the US in the form they currently do, because they're structured on complete bullshit.

br0ken_shad0w · Apr 18, 2021

Eatin' Olives said:
1. Get a card without an annual fee
2. Pay in full every month
3. Set up rewards to deposit as cash directly into your account
4. ???
5. Literally profit

Even with AF cards, you can still come out ahead depending on what your spending habits and lifestyle is. Chase Sapphire Reserve has a $450/yr AF but it's still worth it to me because how often I travel and eat out every year.

It does suck the reason the banks can dish out said rewards is because of said predatory tactics on the less fortunate.

Vilam · Apr 18, 2021

Eatin' Olives said:
1. Get a card without an annual fee
2. Pay in full every month
3. Set up rewards to deposit as cash directly into your account
4. ???
5. Literally profit

Sorry, no logic allowed here. This thread is for scare mongering people who are dumb with their money.

Herr Starr · Apr 18, 2021

mutantmagnet said:
I will continue to use a credit card but there are reasons in that video should convince everyone in this thread that there should be some institutional changes.

It is safe to say that credit has been mostly harmful for the average citizen.

Yeah, the only way out of this problem is with institutional changes, preferably regulation. Because the game is rigged by the banks, you can't really opt out of credit cards in the US on a personal level without basically giving up the ability to take up loans later. You're forced into using credit cards to be a functional member of society, and that's mind-numbingly ridiculous.

One of the simplest early steps to get out of this system would be to make it illegal for banks to use your payment history for credit cards as a basis for your ability to take up a loan. Missed payments should be counted, obviously, but as long as you don't have those, banks shouldn't be allowed to differentiate between someone who pays off a credit card each month and one who has no credit card or who doesn't use it.

Do this, and people suddenly have a choice. They can still choose to use credit cards if they want to, but they aren't forced to have one to buy a house or a car.

More regulatory steps are needed, obviously, but this one would help a lot.

For comparison, here in Norway, banks cannot use your payment history when evaluating loan applications except for missed payments (within the last three years). They primarily look at three factors:

1) Your income.
2) Your total debt.
3) Your missed payment history within the last three years.

Additionally, your credit limit is considered debt whether you use it or not. If I have a $5000 credit limit on a credit card that I never use, that's $5000 worth of debt when I apply for a loan. Add in a bunch of other regulation, and owning a credit card is suddenly not a fantastic idea, particularly not one with a high credit limit. The only thing that you are usually recommended to use a credit card for is to pay for trips since that comes with a lot of safety and protection for the customer that a cash payment would not provide. And even that is being slowly phased out.

Djalminha · Apr 18, 2021

When I moved to Canada I couldn't believe what a scam they were. In Europe, my credit card was essentially a debit card with some of the advantages you get from the credit card (like online or international shopping or better protection); it was all I needed.

When my wife told me I needed a credit card, I was like no I really don't. Then she explained to me about this credit system they had set up and how you needed the card to build credit, how there were these people called debt collectors, how anyone moving to the country wouldn't have credit and thus would be fucked, like starting the race with a weight tied to your leg... I went to the bank and got a debit card at first, but I couldn't shop online, it didn't work anywhere but in my province... They were clearly pushing you towards the credit card.

For reference, in my country, credit scores don't exist, it makes no sense that if ten years ago you struggled, it would hunt you now. Instead, say for a mortgage, they look at your job security, salary, savings, assets... Basically, can you or can you not pay? Not whether you didn't pay every month when you had another job and your life was completely different.

Debt collection in my country would be illegal, and I mean a debt collector would go to prison for doing their job, and seeing how they behave, most deserve it. Instead, if someone owes you money, you take it to a legal court and they arbitrate. Crazy, I know.

The credit system is designed to make poverty chase you throughout your life, tempt you to buy what you can't afford and, essentially, preventing you from improving your financial situation. Well, that, and to make a few assholes even richer.

Edit: thinking more about it, the fact that the system punishes someone who never needed to acquire debt, was always able to save up and pay everything upfront, literally the most responsible person in the world when it comes to finances, because they didn't play a game with points and scores, should tell you everything you need to know about this system.

Djalminha · Apr 18, 2021

Herr Starr said:
Yeah, the only way out of this problem is with institutional changes, preferably regulation. Because the game is rigged by the banks, you can't really opt out of credit cards in the US on a personal level without basically giving up the ability to take up loans later. You're forced into using credit cards to be a functional member of society, and that's mind-numbingly ridiculous.

One of the simplest early steps to get out of this system would be to make it illegal for banks to use your payment history for credit cards as a basis for your ability to take up a loan. Missed payments should be counted, obviously, but as long as you don't have those, banks shouldn't be allowed to differentiate between someone who pays off a credit card each month and one who has no credit card or who doesn't use it.

Do this, and people suddenly have a choice. They can still choose to use credit cards if they want to, but they aren't forced to have one to buy a house or a car.

More regulatory steps are needed, obviously, but this one would help a lot.

For comparison, here in Norway, banks cannot use your payment history when evaluating loan applications except for missed payments (within the last three years). They primarily look at three factors:

1) Your income.
2) Your total debt.
3) Your missed payment history within the last three years.

Additionally, your credit limit is considered debt whether you use it or not. If I have a $5000 credit limit on a credit card that I never use, that's $5000 worth of debt when I apply for a loan. Add in a bunch of other regulation, and owning a credit card is suddenly not a fantastic idea, particularly not one with a high credit limit. The only thing that you are usually recommended to use a credit card for is to pay for trips since that comes with a lot of safety and protection for the customer that a cash payment would not provide. And even that is being slowly phased out.

Exactly, in Spain it works similarity.

So for instance, if I apply for a loan in Spain, because I've never had debt, I've always saved up money and paid upfront for everything in my life, the bank is essentially thinking "this dude is responsible with his finances, he can take care of a monthly payment".

In Canada, it's like "this dude has never had debt, how can we tell if he'll be responsible with his money? Loan denied". Or worse, they give you the loan but with a much higher interest rate, basically saying "you've never given us money but now you'll make it up to us".

Ikuu · Apr 18, 2021

Using your Debit Card online is a real low IQ move.

nekkid · Apr 18, 2021

Eatin' Olives said:
1. Get a card without an annual fee
2. Pay in full every month
3. Set up rewards to deposit as cash directly into your account
4. ???
5. Literally profit

I mean yeah, I use my credit card for two things: free air miles and purchase security. The issue is that what they lose with me, they gain with others: where some people lack that discipline, or worse with their desperation of circumstance.

nofriendo · Apr 18, 2021

Djalminha said:
...
The credit system is designed to make poverty chase you throughout your life, tempt you to buy what you can't afford and, essentially, preventing you from improving your financial situation. Well, that, and to make a few assholes even richer.

This entire post is pretty bang on.

The fact that a lot of folks seemed to be conditioned to use credit cards because of reward points and improving your credit score is pretty fucked.

In Ireland , when applying for a mortgage they use what they call 'Gross Disposable Income' . Which is basically what you earn minus your monthly debits, they then use this to check whether you can afford to pay your mortgage.

Couple of facts:

40% of Americans are a single missed paycheck or large bill away from poverty.

Credit Card companies in the US made close to $200 billion in interest last year.

Djalminha · Apr 18, 2021

Vilam said:
Sorry, no logic allowed here. This thread is for scare mongering people who are dumb with their money.

Bullshit. Even if someone is smart with their money, you can see how the system is designed to entrap others and keep poor people poor.

Think of a person who moves to the US for a job. They make good money, but got no credit history. What's the bank going to say if they ask for a loan to buy a house?

Now the American moves to Europe. Good salary, no standing debt. Loan with good interest rate.

Read my first post, this system is not fair, there's a reason why it doesn't exist in most countries in the world. It goes against the citizen, even if some citizens learn to navigate it. A system that punishes someone who always saves up and pays upfront for their purchases is not fair, no matter how you put it.

I mean, debt collectors are part of your system, for fucks sake.

Gawge · Apr 18, 2021

super-famicom said:
I use credit cards like 99% of the time. I never spend beyond my means and I pay off my card in full every month. I've earned tens of thousands of points across multiple cards, which equals free airline tickets to Japan and hundreds of dollars in cash back which I can just apply to my monthly statements. My credit cards also get me extended warranty on pretty much everything I purchase and fraud protection. My Amex cards also get me free roadside assistance. So no, credit cards are not a scam. People simply have not been taught how to effectively use them.

I do the same, pay for basically everything I can with my Amex (which in the UK means less rewards, but still a solid £50+ per year plus protection on purchases for 'free').

However, as a whole, they are a 'scam' in that my £50p/a rewards is basically being funded by the people who don't know how to use it and get in debt.

Obviously, people should be taught how to use credit cards, but their beneficial uses largely depend on those who fail to use them 'correctly'. Like, as a human endeavour it's a scam.

bushmonkey · Apr 18, 2021

The banks in the states are racking it in by charging retailers for the privilege of letting customers use their cards and customers want to use the cards to get the rewards and improve their credit score so the shops have no choice but to accept the charge... sure sounds like a racket to me. In other countries, credit cards are just used for emergencies and paid back over time. No-one uses them for regular shopping and you don't get rewards or discriminated in your credit score because you don't use them. If anything, using them and getting in the red is worse as that affects your credit score negatively so you're better off not using them at all.
Most shops in the UK don't even accept American Express because no-one wants to pay the charge for the privilege and customers don't care about using them in shops.

The Adder · Apr 18, 2021

Herr Starr said:
If you haven't got a credit card that is constantly slightly in the red and being paid off every month, you can wave goodbye to your chances of getting a house or a car.

This is a myth. I keep a 0 balance on my card by paying my daily expenditures twice a week and my credit score has only gone up. You need a card and it needs to be active, but it doesn't need to be in the red.

Djalminha · Apr 18, 2021

bushmonkey said:
The banks in the states are racking it in by charging retailers for the privilege of letting customers use their cards and customers want to use the cards to get the rewards and improve their credit score so the shops have no choice but to accept the charge... sure sounds like a racket to me. In other countries, credit cards are just used for emergencies and paid back over time. No-one uses them for regular shopping and you don't get rewards or discriminated in your credit score because you don't use them. If anything, using them and getting in the red is worse as that affects your credit score negatively so you're better off not using them at all.
Most shops in the UK don't even accept American Express because no-one wants to pay the charge for the privilege and customers don't care about using them in shops.

This is a great point as well. When you look at it from the perspective of businesses, particularly small ones, it becomes even a greater scam.

Djalminha · Apr 18, 2021

The Adder said:
This is a myth. I keep a 0 balance on my card by paying my daily expenditures twice a week and my credit score has only gone up. You need a card and it needs to be active, but it doesn't need to be in the red.

I mean, doesn't that mean that your card is constantly in the red? You pay it off, then you make a purchase, now it's in the red until you pay it off again, even if it's only for a few days.

Herr Starr · Apr 18, 2021

The Adder said:
This is a myth. I keep a 0 balance on my card by paying my daily expenditures twice a week and my credit score has only gone up. You need a card and it needs to be active, but it doesn't need to be in the red.

That's what I was trying to say, but I may have been unclear. If you use the card and pay off your expenditures in a timely manner, that helps your credit rating. But that simply underlines what I'm saying: you're forced into using credit cards whether you want to or not. That's what should change, first and foremost.

Ikuu · Apr 18, 2021

bushmonkey said:
The banks in the states are racking it in by charging retailers for the privilege of letting customers use their cards and customers want to use the cards to get the rewards and improve their credit score so the shops have no choice but to accept the charge... sure sounds like a racket to me. In other countries, credit cards are just used for emergencies and paid back over time. No-one uses them for regular shopping and you don't get rewards or discriminated in your credit score because you don't use them. If anything, using them and getting in the red is worse as that affects your credit score negatively so you're better off not using them at all.
Most shops in the UK don't even accept American Express because no-one wants to pay the charge for the privilege and customers don't care about using them in shops.

I rarely have issues with Amex in stores, pretty much every major one will take it these days. Plenty of cards offer rewards but they aren't as good as the US as the fees they can charge stores is capped and a lot lower. Plenty of people use them for regular shopping.

The Adder said:
This is a myth. I keep a 0 balance on my card by paying my daily expenditures twice a week and my credit score has only gone up. You need a card and it needs to be active, but it doesn't need to be in the red.

This just seems a weird way to do things, just pay it once when you get the bill, there is no need to micromanage it like that.

KDR_11k · Apr 18, 2021

To me they're just a digital payment method, not a credit but then again the limit on my card is a fraction of the money I actually have in my bank account and I only hit the limit once when I used it to buy some 'spensive hardware as opposed to the food purchases and occasional videogames it's normally used on.
The buffering helps with the transaction fees my bank charges on bank card payments. Especially lately, what with every store wanting you to pay contactless to avoid spreading the virus.

Ikuu · Apr 18, 2021

Djalminha said:
This is a great point as well. When you look at it from the perspective of businesses, particularly small ones, it becomes even a greater scam.

Handling cash isn't free and has plenty of security issues.

The Adder · Apr 18, 2021

Djalminha said:
I mean, doesn't that mean that your card is constantly in the red? You pay it off, then you make a purchase, now it's in the red until you pay it off again, even if it's only for a few days.

Having a balance isn't being in the red. That usually means having more expenses than funds with which to pay expenses. More generally, it can refer to carrying a balance over and accruing interest is being in the red. Owing debt you can pay off isn't generally considered being in the red.

Herr Starr said:
That's what I was trying to say, but I may have been unclear. If you use the card and pay off your expenditures in a timely manner, that helps your credit rating. But that simply underlines what I'm saying: you're forced into using credit cards whether you want to or not. That's what should change, first and foremost.

Gotcha. The maintaining a balance thing is something that people genuinely believe, so I try to correct it (and save people some interest payments). And yeah. Wouldn't complain if they legislated something to make credit cards less predatory. But until they do, I'd be foolish to leave money on the table if I'm capable of maintaining a card.

Joni · Apr 18, 2021

KDR_11k said:
The buffering helps with the transaction fees my bank charges on bank card payments.

That is a real shitty bank. Is that common in the US?

KDR_11k · Apr 18, 2021

Joni said:
That is a real shitty bank. Is that common in the US?

Germany. It's 20 cents per transaction with 30 or so transactions free per month. Normally I don't hit that limit but with the pandemic and cash use being discouraged that did get annoying.

nofriendo · Apr 18, 2021

Ikuu said:
I rarely have issues with Amex in stores, pretty much every major one will take it these days. Plenty of cards offer rewards but they aren't as good as the US as the fees they can charge stores is capped and a lot lower. Plenty of people use them for regular shopping.

This just seems a weird way to do things, just pay it once when you get the bill, there is no need to micromanage it like that.

I don't know a single person who uses them for regular shopping if they have money. Credit Cards over here are mostly used for when you don't have the money to buy something.

Joni · Apr 18, 2021

KDR_11k said:
Germany. It's 20 cents per transaction with 30 or so transactions free per month. Normally I don't hit that limit but with the pandemic and cash use being discouraged that did get annoying.

Really? That is a shitty deal. I'd look for another bank.

The Adder · Apr 18, 2021

Ikuu said:
This just seems a weird way to do things, just pay it once when you get the bill, there is no need to micromanage it like that.

I don't like auto payments. I don't like carrying a debt. And I don't like having to pay large sums all at once. If there's an emergency and I'm incapacitated I don't want to miss a payment and accrue interest on literally everything I bought that month. So I pay my balance the day I get paid and the day after my weekend every week.

An abundance of caution can't hurt. Getting careless can.

Djalminha · Apr 18, 2021

Ikuu said:
Handling cash isn't free and has plenty of security issues.

It doesn't have to be. In Europe we have cards that are essentially a debit card with the advantages and security of a credit card. In North America they make those securities exclusive to the credit card for a reason.

Ikuu · Apr 18, 2021

Djalminha said:
It doesn't have to be. In Europe we have cards that are essentially a debit card with the advantages and security of a credit card. In North America they make those securities exclusive to the credit card for a reason.

Debit cards still cost the retailer, the fees are generally lower but it isn't free.

Jonnax · Apr 18, 2021

nofriendo said:
I don't know a single person who uses them for regular shopping if they have money. Credit Cards over here are mostly used for when you don't have the money to buy something.

In the UK?
I do all my spending on credit card.
You get extra buyer protection if it's over about £100
Plus it's easier to get your money back.

For example: a few years ago an airline went bust which my and a friend had tickets for.
I paid on my credit card, and he paid on debit.
He didn't get his money back, I did.

bushmonkey · Apr 18, 2021

Ikuu said:
I rarely have issues with Amex in stores, pretty much every major one will take it these days. Plenty of cards offer rewards but they aren't as good as the US as the fees they can charge stores is capped and a lot lower. Plenty of people use them for regular shopping.

I really was talking about small shops to be honest. Corner shops and independents don't tend to take Amex. I used to work in an indie video game shop and we were the only ones to accept it. After a few years we stopped as the charge compared to how many people actually used the card just wasn't worth it.
As for people using them for regular shopping, that's not what I've seen but that's just my personal experience.

nofriendo · Apr 18, 2021

Djalminha said:
It doesn't have to be. In Europe we have cards that are essentially a debit card with the advantages and security of a credit card. In North America they make those securities exclusive to the credit card for a reason.

Also, fintech crowds like Revolut and N26 are seeing a big uptick in use over here.

Joni · Apr 18, 2021

Ikuu said:
Debit cards still cost the retailer, the fees are generally lower but it isn't free.

Indeed. But debit card fees are heavily capped. For the US there is the Durbin rule. For the EU, they are both capped but debit card payments are capped to 0.2% while credit cards are capped to 0.3%.

nofriendo said:
Also, fintech crowds like Revolut and N26 are seeing a big uptick in use over here.

Sure, but Revolut tends to be mostly popular in people traveling between Euro and non-Euro countries. Like I wouldn't charge up Revolut to travel from Belgium to Spain, I can just use my debit card.

TacoSupreme · Apr 18, 2021

At least with the consumer protection where I live, you'd never catch me buying shit with a debit card. Not only does it protect me from fraud, but even in the event of a legitimate business going bankrupt I've always gotten my money back. If I used a debit card instead I'd be fucked.

Hrodulf · Apr 18, 2021

MartinB105 said:
But who uses cash in 2021? Literally the only place I've used cash in over a year is the magic mushroom shop.

Cash is huge in Germany still. There are loads of places even in the largest cities that accept only cash payments.

bushmonkey · Apr 18, 2021

Jonnax said:
In the UK?
I do all my spending on credit card.
You get extra buyer protection if it's over about £100
Plus it's easier to get your money back.

For example: a few years ago an airline went bust which my and a friend had tickets for.
I paid on my credit card, and he paid on debit.
He didn't get his money back, I did.

That's not regular shopping. I'm talking 'getting milk from the corner shop' and such. Of course people use them for large transactions, I wasn't implying otherwise.

Edit: sorry I thought you were quoting me :)

Djalminha · Apr 18, 2021

The Adder said:
Having a balance isn't being in the red. That usually means having more expenses than funds with which to pay expenses. More generally, it can refer to carrying a balance over and accruing interest is being in the red. Owing debt you can pay off isn't generally considered being in the red.

I think the system in my country and the system in yours have different definitions of being in the red.

My credit card in Spain is essentially what you'd call a debit card with the advantages of added security, online shopping, insurance against scams and that kind of thing. But when I pay with it, it automatically takes the money out of my bank account. The moment you have a standing payment, you're in the red, because you technically owe money.

Incidentally, we don't use the term balance to refer to how much we owe but actually to refer to how much we have. So for instance, my card has a limit of 1000€ per transaction for security reasons. When I need to spend more, I call the bank and they move money to the card from my account. That money is my balance, but it is money that belongs to me; if I decide not to spend it, they move it back to my savings. What you call balance, we actually call negative balance.

It's kind of crazy how different these things are. People will argue but I can't see a single way in which the northamerican system is better, unless you're a banker.

Djalminha · Apr 18, 2021

Ikuu said:
Debit cards still cost the retailer, the fees are generally lower but it isn't free.

I know, but the difference matters, there are places that take one and not the other.

bushmonkey · Apr 18, 2021

Ikuu said:
Handling cash isn't free and has plenty of security issues.

Not using credit card doesn't mean using cash, it means using a debit card.

Jonnax · Apr 18, 2021

bushmonkey said:
That's not regular shopping. I'm talking 'getting milk from the corner shop' and such. Of course people use them for large transactions, I wasn't implying otherwise.

Well a corner shop normally has a £5 minimum for card payments.
But I'd use my mastercard credit card there instead of Amex.
But to a supermarket it's always credit card for me.
Paying off the balance in full every month means there's no interest cost.

I don't see the reason not to.
It's good way of tracking my monthly spend.

Joni · Apr 18, 2021

Jonnax said:
Well a corner shop normally has a £5 minimum for card payments.
But I'd use my mastercard credit card there instead of Amex.
But to a supermarket it's always credit card for me.
Paying off the balance in full every month means there's no interest cost.

I don't see the reason not to.
It's good way of tracking my monthly spend.

You'd see the same with your bank statements on your debit card, with the change that you can adapt faster.

Djalminha · Apr 18, 2021

TacoSupreme said:
At least with the consumer protection where I live, you'd never catch me buying shit with a debit card. Not only does it protect me from fraud, but even in the event of a legitimate business going bankrupt I've always gotten my money back. If I used a debit card instead I'd be fucked.

In most countries you can get debit cards that use that protection. Of course you live where you live and have to do what's best for you in your circumstances. However, it doesn't mean the system isn't designed to force you to use a credit card. They design debit cards to be weaker, there's no reasons why they couldn't add those protections to them like they do in Europe.

nofriendo · Apr 18, 2021

Jonnax said:
In the UK?
I do all my spending on credit card.
You get extra buyer protection if it's over about £100
Plus it's easier to get your money back.

For example: a few years ago an airline went bust which my and a friend had tickets for.
I paid on my credit card, and he paid on debit.
He didn't get his money back, I did.

Well now I know one person who does.

Listen, credit cards can serve a great purpose. I have used them buying flights and booking hotels before but this idea of having to use them so your credit score improves is insane.

People are not gaming the system by earning rewards and improving their credit score, its a shitty system that is gaming them.

Joni said:
Sure, but Revolut tends to be mostly popular in people traveling between Euro and non-Euro countries.

I don't think so. 1 million registered users in Ireland alone. I use Revolut whenever I am on vacation in another EU country. Really great way to avoid taking out cash or having shitty charges. In saying that though the option to convert your currency on the fly is great.

It's great that a lot of the folks on here seem to be pretty strict when it comes to how they are using their credit cards. A lot of other folks are not and these companies are making an absolute killing. Conditioning people to think that not having the money to buy something doesn't mean that you can't buy it.

Deleted member 59 · Apr 18, 2021

I'm in the UK. I use my credit card for everything and on a day to day basis and typically transfer my money to clear it the same day or week.

Never spent more than £500 in one go, and that was for a piece of furniture which I again paid off straight away.

The credit is great to have there in the background incase there's ever an emergency that my cash/savings can't cover alone.

Credit cards and their functions are useful tools that should not be referred to as a scam imo. The problem is a combination of poor financial education, (so people don't know the effects of missed payments or how much interest can add up if you only ever pay minimum payments) and peoples desires to have the newest, shiniest gadgets when they can't afford them.

The credit system makes sense for what it is. They want you to prove you can use credit and can repay credit. To prove it you need to have a solid credit score/report. I started with a credit builder card 8 years ago with a £200 credit limit. I used it wisely and always paid on time, so banks/building societies were happy to give me a mortgage of hundreds of thousands of GBP. They'd have been silly to do that if i had no record of utilising credit and paying things back, it's a huge risk m

Valcrist · Apr 18, 2021

Eatin' Olives said:
1. Get a card without an annual fee
2. Pay in full every month
3. Set up rewards to deposit as cash directly into your account
4. ???
5. Literally profit

Been doing this since day one. :D

Wackamole · Apr 18, 2021

Ir's pretty insame to see a country go completey wild on credit cards. We don't have that where i live. I have one credit card, mostly because i need it for stuff from the U.S. Never use it otherwise. And there is a limit on it. The CC company tried to make me increase that limit numerous times but i never did.
I pay every purchace back at the end of the same month.

nofriendo · Apr 18, 2021

Jonnax said:
...
It's good way of tracking my monthly spend.

So are bank statements or banking online. Really easy with stuff like Revolut as well.

BTW if you want to be really technical, its a good way to track your monthly debt because that is what it is until you pay it off.

EDIT: Again, if you are paying off regularly thats great. Lot of other folk are not or can't

DryCreek · Apr 18, 2021

Joni · Apr 18, 2021

nofriendo said:
I don't think so. 1 million registered users in Ireland alone. I use Revolut whenever I am on vacation in another EU country. Really great way to avoid taking out cash or having shitty charges. In saying that though the option to convert your currency on the fly is great.

This doesn't make sense because banks aren't allowed to charge you more than they would in your home country when you're in the Eurozone.

Your bank must charge you the same rate for payments in euro across the EU as it does for equivalent national transactions. This includes any:

transfers between bank accounts in different EU countries

withdrawals from cash machines/ATMs in EU countries

payments by debit or credit card across the EU

direct debit transactions

Payments, transfers and cheques in the EU - Your Europe

EU rules limit the cost of electronic payments or withdrawals in euros within the EU, and prevent you being charged extra just for using your card.

europa.eu

crimnos · Apr 18, 2021

Like a lot of folks here I use my cards responsibly and as a means to generate rewards cash to basically discount staples like groceries and gas, but I also remember a time when I was in crushing poverty and they seemed like a lifeline.

It's been eye-opening in my later years to be able to pay it off monthly and use it as a tool. It's very, very privileged to be In a position to do so and speaks a lot to how there are separate financial systems for the relatively well off and the poor and 99% of the system is rigged against the poor. As a poor kid, you're given little if no financial training in school, learn bad habits from people who also had no training, and even if you did have that education It doesn't stop the desperate temptation at 2 AM when you can't sleep worrying about how you're going to feed your kids or keep a roof over their head.

The cycle of poverty is real and vicious and credit card companies profit from it.

yumms · Apr 18, 2021

Eatin' Olives said:
1. Get a card without an annual fee
2. Pay in full every month
3. Set up rewards to deposit as cash directly into your account
4. ???
5. Literally profit

Yes, doing this with my Citi card provided me with a free Playstation 5.

Paying off the card each month in full literally gives you free money.

Uhm This should be required learning. Why Credit Cards Are A Scam - Honest Ads

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