Why do people get credit cards loan?

[iamsheikhadil]

Well, it's all psychological and hence people just get hooked to free money, money without effort. It's related to how we love to postpone our studies and works. Hey, want $1000 and pay back next month? Sure, I'll work hard next month and pay back, gimme the money now! It works similarly, except you have to pay interest which just grows everyday.

[peter0425]

Well, it's all psychological and hence people just get hooked to free money, money without effort. It's related to how we love to postpone our studies and works. Hey, want $1000 and pay back next month? Sure, I'll work hard next month and pay back, gimme the money now! It works similarly, except you have to pay interest which just grows everyday.

I can feel you mate thats why i have hold my credit cards and starts living with the money i worked for.

I realized that i only drowning my self by borrowing money that i also need to pay in a certain time when the truth is we are just bringing burden to our life.

Free your self from this cards and your life will be in right path.

[Katerin05]

when you urgently need money, this method saves you

[KiloFoxtrot]

A credit card is a type of loan that you can conveniently access in the form of a plastic card by either swiping it on a terminal, entering a pin code, or entering your card information online instead. While the credit line may vary from the bank credit card issuer, it may also vary based on the credit card holder's credit rating.

More importantly, the reasons why people get a credit card may be subjective and different from one person to another. But one fact still remains, a credit card can help you or not financially, mostly depending on how you manage your finances and how you handle your credit card payments as well.

Also, personally I would feel much better a credit card to help me out for unexpected medical or emergency expenses. Therefore one must have control over what's really necessary to purchase, depending on how you view a particular purchase as a real "need" compared to perhaps if it's only a "want" instead that's really not necessary to purchase at the moment.

[jrrsparkles]

You can get rewards while you are using credit cards for your purchases for that some people are using credit cards even if they are having enough balance on their account so this is the smart way of using credit card and you are not going to pay any taxes for that used amount.

But why banks are giving credit cards to the people, has lot more intentions!

[KiloFoxtrot]

You can get rewards while you are using credit cards for your purchases for that some people are using credit cards even if they are having enough balance on their account so this is the smart way of using credit card and you are not going to pay any taxes for that used amount.

I totally agree that people can certainly take advantage of these rewards, of course.

But why banks are giving credit cards to the people, has lot more intentions!

Simply because the banks are in the business of earning money and in order for them to earn, they must lend the money instead in order to earn money.

Also, because they have deposits and investments that they need to pay off those interests as well.

[jrrsparkles]

Simply because the banks are in the business of earning money and in order for them to earn, they must lend the money instead in order to earn money.

Also, because they have deposits and investments that they need to pay off those interests as well.

Banks will give you 8% interest rate for your deposits but they will charge you 14% or more interest rate for our loans and this is how banks are making money.Credit card loans are more harmful for individuals if they are not be able to pay the amount in the right time because the interest rate is more than 30% and which increase more depends on banks and countries.

[KiloFoxtrot]

Simply because the banks are in the business of earning money and in order for them to earn, they must lend the money instead in order to earn money.

Also, because they have deposits and investments that they need to pay off those interests as well.

Banks will give you 8% interest rate for your deposits but they will charge you 14% or more interest rate for our loans and this is how banks are making money.Credit card loans are more harmful for individuals if they are not be able to pay the amount in the right time because the interest rate is more than 30% and which increase more depends on banks and countries.

Exactly what I'm talking about as well. That's why it's important for borrowers to understand and find out the nitty gritty details before going on a spending spree. Use a credit line for a specific loan wisely for it's specific intended purpose i.e. housing loan, car loan, personal loan, business loan, etc. And use the same principle for credit card loans also. Athough I must admit, having the ability and freedom to purchase quickly using a plastic card can be sometimes hard to control. But that is the challenge that every credit cardholder or an aspiring one for that matter must face and decide upon, once he or she gets approved of a credit card.

Also, the interest rates for deposits and for loans or credit card loans may vary from one bank and country to another, but the general idea and principle behind these lending instruments remain the same.

[KiloFoxtrot]

Everyone can have their own reasons. Someone suddenly fell ill with a serious illness, so he needs a lot of money for treatment. Someone might have various other problems. For example, my friend took a loan because he lost his money in a casino. The funny thing is that the casino was not guilty of this incident, my friend is to blame, because he did not use methods of protecting his funds in transactions, such as https://casinocanada.com/payments/idebit/
I myself play a lot in casinos, but I have never lost my money this way, because I use reliable methods of protecting my funds.

But what if I don't play at all in casinos, will your link also help me?  And how is it really a reliable method of protecting my funds?

[Naida_BR]

I don't know if you call that 'out of normal' but I am not a person who gets credit cards loans, even if my allowance is high.
Why are so many people concerned with getting credit cards loans and increasing their maximum allowance?
The maximum I have got with a credit card in once was £500 which I paid the next month. Even before paying with
the credit card, I would have only paid if I had enough money on my main account to pay the balance.

Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ? 

There are so many people who cannot control their allowance and if they increase it then they are going to spend so many that they are not going to control it.
It is in our nature to be greedy and if you have a lot of money you are going to spend the max of it.

[BADecker]

Why do people get credit card loans?


The smart people get CC loans for 3 reasons:
1. To build up their credit so they can borrow a lot more;
2. To borrow the max and stop making payments and keep the money;
3. To start the whole process over again, since it's easy to get out of paying it all back, and since it is easy to cancel your bad credit with the credit reporting agencies.

It's simply a job for smart people. And because of the way the fiat banking system works, they aren't really loans, so it's legal and moral to do.

[Elite70]

So many reasons why depending on everyones preferences, if i would get a credit card i would be using it to purchase online goods and stuffs.

[Subbir]

People get credit card loans because they're an enormous business and that they need a card to transact business There are many companies that aren't ready to transact without a card. The more I take a loan through the cardboard the more it'll be known and therefore the next most borough is going to be available Usually people get credit card loans for business purposes.

[semobo]

So many reasons why depending on everyones preferences, if i would get a credit card i would be using it to purchase online goods and stuffs.

Then you will end up paying debts for the things which is actually not necessary for you. That is the real truth behind credit cards.

If you have credit card then use it wisely like spend on something more important and you have a month to pay that money but make sure you have the needed money in your bank when you are buying itself.

[greenlanternlight01]

I don't know if you call that 'out of normal' but I am not a person who gets credit cards loans, even if my allowance is high.
Why are so many people concerned with getting credit cards loans and increasing their maximum allowance?
The maximum I have got with a credit card in once was £500 which I paid the next month. Even before paying with
the credit card, I would have only paid if I had enough money on my main account to pay the balance.

Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ?  

Here in my country, an increased on maximum allowance helps a particular person specially if they are applying for a bank account which happens to be a requirement for a U.S. visa let's say. So, it is really going to factor in if they were granted an increase in maximum allowance.

[semobo]

Credit ratings are now used for a lot more than just getting more credit. Many employers check credit for hiring. Insurance rates are partly dependent on credit rating. The better credit rating you have the better deals you get on all kinds of transactions, not to mention better loan and mortgage rates.

Yes, you will get more credit until you can't pay the debts so they will seize your assets or bank accounts.If you know how to use the credit cards in the profitable manner then you are good to go but don't spend money on useless things which will eventually make your life depressed later.

[Renampun]

...
Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ? 

it never crossed my mind to make a credit card loan...
doing a credit card loan scheme as you described is actually very dangerous, lucky you if there is a bank that will continue give you the loan, what if not! it will only lead to fraud.

[articlecity]

I don't know if you call that 'out of normal' but I am not a person who gets credit cards loans, even if my allowance is high.
Why are so many people concerned with getting credit cards loans and increasing their maximum allowance?
The maximum I have got with a credit card in once was £500 which I paid the next month. Even before paying with
the credit card, I would have only paid if I had enough money on my main account to pay the balance.

Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ? 

Mostly people use them for everyday expenses and to look after their family but i think taking a loan in any form is not the right thing to do as it increases financial stress and burden on you.

[Jet Cash]

I spend £1,000+ onmy credit card every month. I get a small cash reward, which I receive just before Christmas. I've got the card set to automatic payment of the full amount when it becomes due, and that is generally between 30 and 60 days of the purchase. I don't think of it as a loan, and I make sure I have enough in my debit account to clear the balance at any time. Were I not to clear the balance, I think the interest rate is 13.9%, and that is a mad amount for a loan, especially in the current banking climate. I pay nothing in interest, and I get a small payment in return for using the card.

[boyptc]

Because people need money, i personally would never because you have to pay it back with interest which to me is just too much to pay. Other people want things right away though so i guess not lmfao.

People need necessities.

While they haven't the cash on hand, they get loans or credit cards for the advancement of their needs. But with people that I know, they don't know how to use their credit cards. They use it for entertainment and mostly in leisure and things that they don't actually need.

I've also met people who own a credit card that was wisely using it.

I have no plans of taking one.  I don't attain to pay with interest nor there's something where I can use it.