l also stick with one bank credit card. That's all l need.legitimate credit card from an accredited bank, why all of the other nonsense? I'd rather have a card I can use anywhere, and not one that's can be only used in one place.
Amazon Credit Card?! A Rant
- Thread starter officerripley
- Start date
OneEyedDiva
SF VIP
- Location
- New Jersey
I use the completely opposite tactic. I pay for everything feasible, including groceries, with my reward cards. The only exclusions are my housing (HOA fees), utilities and Verizon internet, because they charge fees to do so. I have several cards (garnered them because of their $150 - $250 bonus offers); some I use more often than others. Some only when they offer 5% in rotating quarterly categories that benefit me. I pay each card in full every single month. Over the past 10 years, I've gotten at least $10,000 in cashback rewards. My checking account would not have paid me to write checks for those purchases. And I certainly wouldn't have gotten an extra $10,000 by paying cash. Consider I've been doing this for longer than 10 years.
Now granted, I know everybody can't use my method because they have no self control when they get a credit card in their hand(s). But for those of us who handle credit well, it's a way to add to wealth plus there are other benefits to having an excellent FICO score.
It's a great rule. Many credit cards are charging 19% or more. I don't think people truly understand how much they're paying for things when they carry a balance at such a high percentage.
You've got a good system.
Although the Amazon card will be only our second credit card, we've profited substantially from the 2.6% cash back on our Visa card. We use it for everything, including gas and groceries.
Unfortunately, many vendors, including a lot of the smaller shops, are now adding a 3% surcharge for credit car purchases.
OneEyedDiva
SF VIP
- Location
- New Jersey
Thank you Rich. Yes, I've noticed that, but so far only with some restaurants. if I'll be getting a 5% cash back and the restaurant charges 3%, I'll still use the card. Between Discover and one of my Chase cards I get 5% back at restaurants at least 6 months out of the year.
Yes, it's not all vendors charge the credit card fee. We don't eat out too often these days simply because even with the cash back the prices are still way too high for a meal out to be a good value.
Timewise 60+
Senior Member
My late father worked in banking all of his life. I too worked in banking but only for 10 years. One thing I learned in banking, as did my dad, was that most people who have credit cards carry a balance month on month and pay grossly high interest rates (+20%/ yr.) on those outstanding balances.
I understand that some people do not carry any balances on their credit cards past the due dates, this avoiding interest charges, good for them. But they are few and far between...from my observations while in banking.
Many/ most people who have credit cards carry some balances that require that they pay interest on the cards...banks/ merchants and credit card companies are getting rich with all these incoming interest payments...
Once a person gets 'balances' backed up on their cards, they do find it extremely difficult to pay them off...
I understand that some people do not carry any balances on their credit cards past the due dates, this avoiding interest charges, good for them. But they are few and far between...from my observations while in banking.
Many/ most people who have credit cards carry some balances that require that they pay interest on the cards...banks/ merchants and credit card companies are getting rich with all these incoming interest payments...
Once a person gets 'balances' backed up on their cards, they do find it extremely difficult to pay them off...
That Lady in PA
Senior Member
Same here! CCs whenever and wherever I can.
The benefits of using rewards credit cards FAR outweigh using cash or check.
OneEyedDiva
SF VIP
- Location
- New Jersey
Sadly, you are correct Timewise. I've seen financial interventions on Oprah where people had amassed 80,000 or more in debt, most of it credit cards. I think some cards are charging 24% now. I have noticed that some banks send out (or include with the customer's new card) a grid that shows how much customers would wind up paying if they paid only the minimum. I saw one from TD Bank and though that's never been an issue for me...it was very sobering.
We Muslims are advised not to deal in Riba (interest), not to charge it, not to pay it going back to ancient times. It was seen as a method of making the rich, richer and keeping the poor poor. Of course, in modern times, we see the damage being in so much debt causes, as you pointed out. I've been Muslim for 30 years, but I haven't paid interest nor bank fees (except for the safe deposit box fees) in 53 years. Since I was in my early 20s the concept of paying more for something than the actual cost didn't sit well with me.
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gruntlabor
Well-known Member
- Location
- Last Frontier, Age 83
One thing I believe may spell trouble for credit card companies:
It used to be that the merchant was not permitted to raise his price to compensate when the customer paid by credit card. Now, many merchants are charging extra, or not allowing credit card use at all.
If enough merchants were to do this, something else may take hold, like savings or checking-account credit or Universal Basic Income being accepted as a source of credit.
It used to be that the merchant was not permitted to raise his price to compensate when the customer paid by credit card. Now, many merchants are charging extra, or not allowing credit card use at all.
If enough merchants were to do this, something else may take hold, like savings or checking-account credit or Universal Basic Income being accepted as a source of credit.
Timewise 60+
Senior Member
I like your comments and perspective. But the companies collecting the millions and millions of interest dollars from all the folks who have fallen into the 'dept trap' will do nothing to stop the rip-off they are doing. These thieves will do whatever it takes to trick people to get cards and then let them overspend until they cannot take anymore.
gruntlabor
Well-known Member
- Location
- Last Frontier, Age 83
They are not the only ones. Utilities charge horrific late fees and penalties, as does government and others. I believe this is victimization of the poor because first the poor must feed their breadwinners and families, and keep a roof over their heads.