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eldemonio (99.15)

Credit Cards Are Good

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September 09, 2009 – Comments (9) | RELATED TICKERS: CRE , DIT

Credit cards are taking an unfair beating lately.  Everyone is claiming that paying with cash is so much better.  I agree that running up debt is irresponsible and not a good idea, but what about using your credit cards to buy things you normally would buy with cash to earn incentives such as airline miles and cash back?  What is the down side to using a $0 annual fee card to buy groceries and gas, and then pay down the card before any interest accrues?  If you earn miles or cash back, sometimes as high as 5% cash back, why wouldn't you do that?

I find it interesting that some people cut up their cards, claiming fiscal responsibility. Responsibility isn't eliminating all of the temptations from one's life, it is making the correct choice when faced with temptation. 

Anyway, check out the following link for some good info on what kinds of offers are available.

http://www.creditcards.com

9 Comments – Post Your Own

#1) On September 09, 2009 at 7:37 PM, skeptic86 (29.61) wrote:

agreed. i use my creditcard for everything i can. then i get giftcards and use them for christmas shopping. the media is doing a good job of demonizing creditcards. ive noticed some looks and sighs every once in a while when a store clerk asks , "debit or credit."

if there is ever surcharge for using credit, i always use my debit card though.

 

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#2) On September 09, 2009 at 8:12 PM, RonChapmanJr (99.71) wrote:

I agree.  I run everything I can through my cards.  The only downside for most people is that they spend more when using credit than when using cash.  That effect of plastic has been well documented.  If someone can spend the same using credit as they do cash, they should get a reward card and have at it.

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#3) On September 09, 2009 at 9:00 PM, Imperial1964 (98.46) wrote:

For the few of us who have enough money-sense to track our credit card spending to make sure we don't spend more than we can pay on the due date, and don't fall into the trap of "I really want to go..." or "I really need to buy... and I'll pay the rest of it off next month" they aren't necessarily a bad thing.

But consider what happens when a hardship arrises.  If you get hurt and can't work or get laid off, expenses get put on the credit card.  Even the best of us it allows to put off the tough choices, like do I need to cancel the cable TV, the family cut down to one car, ditch the cell-phone, or start eating Ramen noodles like we did in college. 

We have a lot of these "necessities" and bills, most of which if we didn't have access to revolving credit we would realize we have to cut down on or cut out.  It allows us to maintain a lifestyle we can no longer support when a "temporary" situation arises.

You never know what may happen and in this economy and job loss might turn out to be a lot less temporary than we believe.

I know several of my (fairly responsible) friends who have been unemployed and racking up thousands or tens of thousands of dollars of debt when they should be cutting back much more seriously.

 

I don't have a problem with credit cards per se, just revolving credit in general.  I'd like them better if they weren't revolving and you just got billed for the full amount at the end of the month. 

Sometimes being responsible is avoiding the temptation in the first place--at least if it is really does tempt you.

If you're paying down the card before acruing interest why not use a debit card?

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#4) On September 09, 2009 at 10:11 PM, HarryCarysGhost (99.74) wrote:

So what your saying is don't blame the credit card copanies V,MA.

The banks make the loans. Visa and Mastercard are just proccessing every transaction. American express, Discover, and any Bank credit cards charge the interest.

If people are not responsible enough to hold a credit card they should get a debit card. Why is society responsible, this is the same as when everybody thought they should own a home.

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#5) On September 09, 2009 at 10:37 PM, HarryCarysGhost (99.74) wrote:

After reading my post, I may have been to harsh.

I understand that anybody could be a victom of circumstances.

My only point was that V and MA were being lumped in with the banks unfairly.

 

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#6) On September 09, 2009 at 11:07 PM, eldemonio (99.15) wrote:

Imperial,

Thanks for the comment.  Debit cards do not offer the same rewards and offers that credit cards offer.  Most cards will honor awards whether or not the user is paying interest on purchases. 

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#7) On September 10, 2009 at 12:11 AM, Imperial1964 (98.46) wrote:

My debit card sort-of offers a reward.  I think it's 1% of purchases, when you have it processed as "credit", go towards the local school district.  I suppose they do it that way so they can collect the merchant fees in the same manner as a credit card, though I don't really know.

Anyway, if they offer rewards to someone else for my purchases, as some credit cards do, why can't they offer the reward directly to me?  If the credit card pays its rewards mostly out of merchant fees--if you notice with many cards purchases at some types of merchants offer higher rewards than others--why can't the debit card do the same if you select "credit"?  Or why can't they negotiate the same fees as credit cards?

I think the day will come.

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#8) On September 10, 2009 at 8:17 AM, skeptic86 (29.61) wrote:

imperial,

"why can't the debit card do the same if you select "credit"?  Or why can't they negotiate the same fees as credit cards?"

Some places give you a 2% discount for using cash/debit, or you get a 2% penalty for credit, however you want to look at it. I used to pay my tuition with my creditcard (then pay off the balance before an interest) then the school started charging 2% extra. My favorite liquor store does the same thing.

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#9) On November 23, 2009 at 2:53 AM, KamranatUCLA (29.72) wrote:

Interesting views.

And I think most of the above cap members know..they just know that something UNJUST is going on in this country right now.

Why are there more white quarterbacks, coaches than there should be? Why does the white people still cling to leadership position and when they can't do that they want to serve as "consaltants."

Chinese, Persians, Russians, Africans lived in civilized societies thousands of years before the "white in America." So you think we needwhite people to consult us?

White people have killed native Americans like Animal, your whole existence in this country is based on crimes. Crimes against humanity and I bet you all know that!!! And I bet you all feel shame. Which is actually sign of hope that coexistence could be possible. But white people have to chill now and let the real people in charge lead this country. I want a Chinese American President, I want a Latin American President. I want an Iranian American President...not only that...I want an all minority congress and Senate.

It's time to see that immigrants made this country and they have to be represented.

Sometimes I talk about force because it seems it's the only language White people understand. The same language that they used against native Americans, African Americans, even Irish Americans.

Many are ignorant and didn't even read my whole blog. I did admit it was based on a true story yet 5 of the bloggers above said that back to me as if I didn't know.

There are many true stories more inspiring than this one and yet I see more movies about white Americans who "help" African Americans.

Guess what we don't need your help. Just stay out of our business. Stop encouraging our youth that sports is all they can do. I want all new African Americans to be engineers, scientists, political personalities.

And meanwhile an Idiot called Sarah Palin gets to be on TV all the time and have a best seller book. Are you that much of an Idiot that you would even read a book of a idiot goose hunter.

I am sick and tired of the ignorance of teh "white America" and I am sorry if I am geralizing too much...but my nager is towards people like Bush, Palin...war monglors, idiots, igonrant people. People who don't admit their mistake even after they made a mistake. Palin still STILL defends her comment about her foreign policy comment (neighbor to Alaska crap).

And it looks to me that many of you are like her. Instead of apologizing honestly for slavery, instead of asking for forgiveness, you say that AFrican Americans are on welfare...so are many white people. Each time I go shopping I see white people with food stamps (in Santa Monica). I see more white homless and beggers than other races.

So instead of putting down others so that you feel better about yourself, how about being an adult, and ask for forgiveness about slavry or native American killings.

If you put other down you might feel better in short term, but you can never have peace with yourself knowing you grandparents maybe killed native Americans in cold blood, or lynched black persons as if they were dogs.

Maybe we should lynch people like Sarah Palin and have African Americans watch that??!!!Myabe white people would like that...that we get to their level. I don't know...All I know is that im sick of movies of white people playing babysitters to African Americans.

Get over yourself, we don't need Heros, we don't need "Angels" like Sandra Bullock who is a millionare....no no we just need an honest appology! Report this comment

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