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Using the cards or not is your choice, of course, and I would never criticize anyone who lives within their means. Something to think about, though. If things are marked up three or four percent to cover the processing fees, and you're paying in cash, you're paying three or four percent more than you should. But if you use a card with one percent back, you're "only" paying two or three percent more than you should.
Personally, I find credit cards to be a useful convenience. Safer than carrying a wad of cash, easier than writing out a bunch of checks, and I get that one percent back. But I pay my balance in full every month. (There was a period of a few months a couple of years ago when I fell on a temporary rough patch and had to carry a balance. I cleared that up as fast as I possibly could.)
Same here. In fact, you can find some cards that give you more than 1% back. I use the Apple Card a lot (ugh, “big tech,” I know!) but if you use it at a place that accepts Apple Pay, you’ll get 2% back. And you get 3% back on purchasing Apple products (which I admittedly don’t do that often) + a couple of other special circumstances, like at specific gas stations and Ace Hardware. So I don’t mind charging things on it, then paying the balance each month.
I carried a balance once, about 18 years ago, when I was moving to a new state for a new job, admittedly had very little savings at the time, and didn’t want to pull from savings to cover those expenses. In that case, I applied for a new card, did a balance transfer, and that allowed for 0% up to a year. Carried a balance for a few months but paid it off before the years’ time was up.
So, if you can be responsible, they can be useful.
Now, however, I’m sure Democrats will try to bail out the financially irresponsible people who make up their core constituency.
Credit cards are nasty little-buggers that I refuse to use. Not that I would not use them responsibly, but I detest their premise. I can afford to pay for the things I purchase, therefore I do not need to take out a small loan to purchase a loaf of bread and a dozen eggs.
And, the cash-back is a gimmick! They give you one percent back, while making two or three percent, because everything you purchase has been marked up three or four percent to cover the merchant processing fee the card companies charge the merchant. I would rather receive a three or four percent cash discount! I wonder how much credit card processing fees affect inflation?
1. I got back about $1200 this year, paid no interest. If you and I both go buy eggs, we pay the same price which will include a mark-up for CC transactions but I will get cash back and you won't. Suit yourself.
2. Credit card processing fees have been around for a long long time, so it's not some new impact on inflation.
I've always wondered why silver and gold and other precious metals are seen as "tangible" assets. After all, they only have value because other people consider them valuable. In and of themselves, they have no more practical utility than a nicely decorated piece of currency. To me, real tangible assets are things that people need or want to have, no matter what. Food, shelter, clothing, toilet paper.
Silver and gold have value because they have unique properties that no other element on the periodic table has. That is what makes them valuable, not people simply "believing" they are valuable.
lots of people on this thread patting themselves on the back about how great THEY are with their credit card use. Heck I do the same thing and never carry a balance just use it for the points and tracking purposes. But millions out there are getting more heavily in debt and at a certain point those people will get to the point of roof over their heads and food in their stomach or making a card payment and they will default. There is really little credit card companies can do beyond annoy you and bankruptcy is not hard to do. The repercussions of all those defaults will have a serious effect on banking which is already having major issues. Of course until the Government(meaning us)just bails them out.
1. I got back about $1200 this year, paid no interest.
Let's just say that $1200 was equal to 1% cash back on every transaction you made. If every merchants fee you paid was three percent, that means you paid $3600 to get $1200 back. Meaning that if you had paid cash, and every place you made a transaction offered a cash discount, you would have saved $2400.
Quote:
Originally Posted by Mathguy
If you and I both go buy eggs, we pay the same price which will include a mark-up for CC transactions but I will get cash back and you won't. Suit yourself.
I am fully aware that I am still paying the extra three or four percent. However, most of the places I patronize are small or family-owned businesses. I would rather they keep that three or four percent, then give it to a card company simply because it is more convenient to swipe a card.
Quote:
Originally Posted by Mathguy
2. Credit card processing fees have been around for a long long time, so it's not some new impact on inflation.
Credit cards are nasty little-buggers that I refuse to use. Not that I would not use them responsibly, but I detest their premise. I can afford to pay for the things I purchase, therefore I do not need to take out a small loan to purchase a loaf of bread and a dozen eggs.
And, the cash-back is a gimmick! They give you one percent back, while making two or three percent, because everything you purchase has been marked up three or four percent to cover the merchant processing fee the card companies charge the merchant. I would rather receive a three or four percent cash discount! I wonder how much credit card processing fees affect inflation?
To each their own but I’ve found credit cards to be extremely lucrative with all of the promotions, bonuses, cash back rewards, and points available (not to mention other perks such as credits for various travel related expenses). On my primary cash back card alone, I’ve earned thousands of dollars in hard cash back over the 7 years that I’ve owned it. Now I always pay my balance off in full each month, so I never pay interest. But not everyone does this, which is something the credit card companies bank on.
Let's just say that $1200 was equal to 1% cash back on every transaction you made. If every merchants fee you paid was three percent, that means you paid $3600 to get $1200 back. Meaning that if you had paid cash, and every place you made a transaction offered a cash discount, you would have saved $2400.
I am fully aware that I am still paying the extra three or four percent. However, most of the places I patronize are small or family-owned businesses. I would rather they keep that three or four percent, then give it to a card company simply because it is more convenient to swipe a card.
True, but they do have an inflationary affect.
1. If there is a deal for paying cash, I take it. I probably average 2.5% back.
2. 100% agree, I almost always pay cash at mom & pop businesses.
Credit card debt forgiveness coming, right after student loan debt forgiveness and slavery reparations
And everybody gets a free micro-unit 200 sqft box in the city.
And everybody gets free allotment of bug paste.
And everybody submits biometrics so AI can track our every movement - y'know - to keep us safe n' stuff.
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