Credit cards | A scam or a tool?

[doomloop]

How can a credit card be safer and secured than a debit card, if they are issued with one and the same bank? They both have same magnetic strip, where all data is stored. Same device is used to write data on it.

The only advantages of credit cards I know - they give higher % on cashback (but this % banks get back through credit usage fees, so basically it is not that significant), and sometimes you get discounts in shops (but that is a bait to force you to spend).

There are debit cards which are printed by some weird companies that you could fill with crypto, that could be one of the reasons why credit card is safer. Nobody really thinks that same bank offering same card but different purposes could be any different in security, if X bank gives you credit card and debit card, there are now some that literally does it with same card so you could either choose to pay with credit or debit with the same card.

This is why I believe that the person you replied to probably talked about different debit cards, there are so many like I could literally get 100 bucks filled debit card, use it, and then throw it away, it is purely digital and it really works but is it secure? Not as much as a credit card issued by banks.

[1715642625]

1715642625

[1715642625]

1715642625

[1715642625]

1715642625

[1715642625]

1715642625

[Quidat]

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question

That sounds like the wrong reason to use it in most cases! Unless it's interest-free, you're almost always better off just waiting and saving up to make the purchase.

I only proceed to use installments when an interest free option is offered. I'm not willing to pay 10-15% surcharge just to get installments. Likewise, I'll rather wait and pay in advance. I've never used it to buy something I couldn't afford, and wasn't offered with interest-free payments. It's just not worth it.

Buy only on what you can afford and able to pay and this should be your main priority or need to follow when it comes to financial handling because you couldnt really able to resist on spending
if you do know that you have something in your pocket or wallet that could possibly able to buy things on point on using your card and we know that interest is really that high whenever you
do past due into your payment thats why if you dont like to put yourself into trouble on paying up huge fees then better to be considerable in every actions you would make.

[Fredomago]

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question

That sounds like the wrong reason to use it in most cases! Unless it's interest-free, you're almost always better off just waiting and saving up to make the purchase.

I only proceed to use installments when an interest free option is offered. I'm not willing to pay 10-15% surcharge just to get installments. Likewise, I'll rather wait and pay in advance. I've never used it to buy something I couldn't afford, and wasn't offered with interest-free payments. It's just not worth it.

Buy only on what you can afford and able to pay and this should be your main priority or need to follow when it comes to financial handling because you couldnt really able to resist on spending
if you do know that you have something in your pocket or wallet that could possibly able to buy things on point on using your card and we know that interest is really that high whenever you
do past due into your payment thats why if you dont like to put yourself into trouble on paying up huge fees then better to be considerable in every actions you would make.

You will end up feeding the CC company when you failed to pay those overdue, it's really important to control yourself each time you use your CC, always check and balance if you really need the items that you'll going to purchase, most of the time, it's best to use your CC in every emergency, things like you've got short in balance but you have some expected funds to fill it up.

If you miss-manage your CC, expect that there many consequences that you will going to face,

It's you who can determine whether it's a tool or a scam that will suck your finances.

[Lanatsa]

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question

That sounds like the wrong reason to use it in most cases! Unless it's interest-free, you're almost always better off just waiting and saving up to make the purchase.

I only proceed to use installments when an interest free option is offered. I'm not willing to pay 10-15% surcharge just to get installments. Likewise, I'll rather wait and pay in advance. I've never used it to buy something I couldn't afford, and wasn't offered with interest-free payments. It's just not worth it.

Buy only on what you can afford and able to pay and this should be your main priority or need to follow when it comes to financial handling because you couldnt really able to resist on spending
if you do know that you have something in your pocket or wallet that could possibly able to buy things on point on using your card and we know that interest is really that high whenever you
do past due into your payment thats why if you dont like to put yourself into trouble on paying up huge fees then better to be considerable in every actions you would make.

You will end up feeding the CC company when you failed to pay those overdue, it's really important to control yourself each time you use your CC, always check and balance if you really need the items that you'll going to purchase, most of the time, it's best to use your CC in every emergency, things like you've got short in balance but you have some expected funds to fill it up.

If you miss-manage your CC, expect that there many consequences that you will going to face,

It's you who can determine whether it's a tool or a scam that will suck your finances.

Based up on my own experience on which you do make use of your card only on emergency or shall we say on a long time on not being used then these banks would definitely decrease your limit which you would really have in mind that you would need to spend up at least.

A very common bank strategy to make their users spent at least which could potentially poke up some unwise spending which might lead to
big debt.

What would you expect? They are aiming or targeting this on the first place since this is where they do make money.

[Ultegra134]

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question

That sounds like the wrong reason to use it in most cases! Unless it's interest-free, you're almost always better off just waiting and saving up to make the purchase.

I only proceed to use installments when an interest free option is offered. I'm not willing to pay 10-15% surcharge just to get installments. Likewise, I'll rather wait and pay in advance. I've never used it to buy something I couldn't afford, and wasn't offered with interest-free payments. It's just not worth it.

Buy only on what you can afford and able to pay and this should be your main priority or need to follow when it comes to financial handling because you couldnt really able to resist on spending
if you do know that you have something in your pocket or wallet that could possibly able to buy things on point on using your card and we know that interest is really that high whenever you
do past due into your payment thats why if you dont like to put yourself into trouble on paying up huge fees then better to be considerable in every actions you would make.

You will end up feeding the CC company when you failed to pay those overdue, it's really important to control yourself each time you use your CC, always check and balance if you really need the items that you'll going to purchase, most of the time, it's best to use your CC in every emergency, things like you've got short in balance but you have some expected funds to fill it up.

If you miss-manage your CC, expect that there many consequences that you will going to face,

It's you who can determine whether it's a tool or a scam that will suck your finances.

Haven't missed a single payment so far, so I guess I'm managing my credit card correctly. It requires discipline and great management skills, but if you're careful enough, in some cases, the benefits are totally worth it. Especially in the USA, I've read about enormous cashback, or flight benefits (Free flights, seat upgrades and so on), which we do not have here.

It's a great tool if used correctly, however, most people fail when using them, and that's what banks are aiming for.

[lucates]

What's your thought about credit cards? Do you consider them a banking fraud, just to trick you to spend money you don't have, or a useful tool if used correctly? Do you have one yourself? In my case, as a student, I was issued a university card, which features a low yearly fee but also a considerably low credit limit. However, I often use it to pay bills in interest free installments (Car insurance for instance) and my gas expenses, which provide a decent cashback (I'll fill up my car once or twice a year for free).

On the other hand, there are quite a few shops here that also offer interest free installments, that way, I was able to purchase a bicycle for my girlfriend, when the budget was quite limited.

The trick on credit cards is to use them wisely, not spending more than you can afford, always pay in time, otherwise you'll get a huge interest on your balance, while at the same time, you're building a credit score.

What's your take on this? Are you against credit card usage?

If you don't know how to handle money properly whatever treasure you have within a few days it's going to vanish. So credit card, loan, etc everything has both advantages and disadvantages. All these are help us to overcome some crucial phases in our life but don't allow them to trap in there.If you don't control your expenses well it's gonna be bad for you. If you not pay your credit bills on time your credit score will drop and charge a huge penalty and interest.We should clear about our income and expenses and must know the basics of handling money. I am not against credit card but using everytime, even buying a petty things, I don't think that's good. Credit cards a scam or a tool? You can only get an answer from your own personal experiences.

[Lotus]

Undoubtedly, they are convenient when purchasing something of value, an expensive TV or bicycle for example, in cases where paying in advance is out of the question

That sounds like the wrong reason to use it in most cases! Unless it's interest-free, you're almost always better off just waiting and saving up to make the purchase.

I only proceed to use installments when an interest free option is offered. I'm not willing to pay 10-15% surcharge just to get installments. Likewise, I'll rather wait and pay in advance. I've never used it to buy something I couldn't afford, and wasn't offered with interest-free payments. It's just not worth it.

Buy only on what you can afford and able to pay and this should be your main priority or need to follow when it comes to financial handling because you couldnt really able to resist on spending
if you do know that you have something in your pocket or wallet that could possibly able to buy things on point on using your card and we know that interest is really that high whenever you
do past due into your payment thats why if you dont like to put yourself into trouble on paying up huge fees then better to be considerable in every actions you would make.

You will end up feeding the CC company when you failed to pay those overdue, it's really important to control yourself each time you use your CC, always check and balance if you really need the items that you'll going to purchase, most of the time, it's best to use your CC in every emergency, things like you've got short in balance but you have some expected funds to fill it up.

If you miss-manage your CC, expect that there many consequences that you will going to face,

It's you who can determine whether it's a tool or a scam that will suck your finances.

Haven't missed a single payment so far, so I guess I'm managing my credit card correctly. It requires discipline and great management skills, but if you're careful enough, in some cases, the benefits are totally worth it. Especially in the USA, I've read about enormous cashback, or flight benefits (Free flights, seat upgrades and so on), which we do not have here.

It's a great tool if used correctly, however, most people fail when using them, and that's what banks are aiming for.

Of course. When you're using it to breakdown payments with no interest, then that's a good use for the card (assuming of course you are relatively confident you can pay it). In fact, that's almost like free money in a sense.

[macson]

i was never interested in using a credit card because to me it was just a bank trick to suck our money.  Many people say that credit cards are a transaction solution, but i don't find where the convenience is when using a credit card

[STT]

I am not against it per se. Some authors, like Dave Ramsey, are totally against them.

His advice for the average person is dead on, real people get distracted and wont keep the correct perspective over 18 months that includes this debt.   However careful a person might start off all through lifes events they will likely slip into some nasty rates of interest.   I know this much just from people I speak to, its very common for banks to take home a fortune from people in debt fees.
   A small few can play the game but even then the economy takes a down turn etc.  the banks wont really lose till it ends in bankruptcy;  the biggest danger they have we spike to 10% unemployment and then nobodys winning.

[Wong Gendheng]

i was never interested in using a credit card because to me it was just a bank trick to suck our money.  Many people say that credit cards are a transaction solution, but i don't find where the convenience is when using a credit card

Credit cards make it easy to get into debt, at first it feels good but when we have to pay and the high interest makes our lives uncomfortable, when we are in debt and maturity makes eating and sleeping uncomfortable so leaving a credit card is the best solution for a comfortable life , I've used up to 3 credit cards with a limit that keeps growing, but it makes me consumptive and can't save and invest anything.

[Juse14]

i was never interested in using a credit card because to me it was just a bank trick to suck our money.  Many people say that credit cards are a transaction solution, but i don't find where the convenience is when using a credit card

This is an option regardless of that credit cards give them temporary benefits with installments that are actually quite burdensome at the end with long terms and agreements.

I think a credit card as a solution is for the government itself, a credit card is a solution to increase profits instantly with the circulation of money that is basically obtained from the community but is used to put people in debt
This is something instant even without government capital to earn money and profits.

[dezoel]

Credit cards make it easy to get into debt, at first it feels good but when we have to pay and the high interest makes our lives uncomfortable, when we are in debt and maturity makes eating and sleeping uncomfortable so leaving a credit card is the best solution for a comfortable life , I've used up to 3 credit cards with a limit that keeps growing, but it makes me consumptive and can't save and invest anything.

Why do you imagine people use credit cards? By the looks of your message you imagine that people get into debt because they want to buy some stuff and have a better life and they can't pay for it so they use credit card and pay in installations and so forth which means you assume people pay for "fun" with credit cards. I can tell you that is not the case for many people, people are having hard time paying for life and they take help from credit cards in that case.

I am not saying that everyone is like that, but I have been in the past and I know plenty of people like that as well. My wife used to need a medicine and that was very expensive at the time and I couldn't pay for it, and that is when I maxed out 2 credit cards, was a horrible financial point in my life but she recovered and she is very healthy now, so I paid it all back and not I have no debt anymore, but for a while I needed credit card to keep my wife healthy, hence: not everyone pays for fun with credit card.

[n0ne]

i was never interested in using a credit card because to me it was just a bank trick to suck our money.  Many people say that credit cards are a transaction solution, but i don't find where the convenience is when using a credit card

Credit cards make it easy to get into debt, at first it feels good but when we have to pay and the high interest makes our lives uncomfortable, when we are in debt and maturity makes eating and sleeping uncomfortable so leaving a credit card is the best solution for a comfortable life , I've used up to 3 credit cards with a limit that keeps growing, but it makes me consumptive and can't save and invest anything.

This is common with more people. Without any benefit surely these banks won't provide with credit cards. They benefit highly through this, as mentioned it makes people more consumptive. Around a month back a friend of mine received credit card, this has been issued on account of him working for the government and have the regular transaction. Initially he have got small limit and it's been said by the bank authorities.

More the transaction through it will increase your limits in a short. He doesn't spend much, but he insists me to use it on need and pay him the cash to increase the transaction. So, it is a way to make it people spend than save/invest.

[awik p]

as far as I have experienced, as long as we can use it wisely then a credit card can be very helpful. we can withdraw cash from the card that we have with a certain limit. this is very useful for entrepreneurs who need money in an urgent time, especially if we have several credit cards so we can cover each other's bills, most of them are stuck with credit cards because they use them consumptively to pursue a lifestyle

[Finestream]

Well, usually it really depends on how the user holds and use it. It may be a tool to help your needs out of daily basis and it can be also a tool to bury you deep in debts if it's used in a wrong manner.
Credit cards are really misleading sometimes because you can use it to pay for somethings or even anything, without even realizing it. So my advice is, to use it only for some special purpose like it may be your wants or needs as long as you pay back on time to avoid hassle and to increase your credit and scores. But if you're just using that credit card to swipe anything you want, then you are in the wrong path my friend because eventually you'll be in much debts.

[uneng]

which provide a decent cashback (I'll fill up my car once or twice a year for free).

That is the reason I have became a supporter of credit cards: cashback feature.

I really don't like to stay in debt and credit cards are very dangerous, as it's likely debt will hit you sooner or later, not exactly because you don't have money to pay for your expenses, but because you may forget it or the credit card can mysteriously trick you. It happened to me once: I had just paid for the purchases I made with my credit card during the month and didn't use it anymore for another one or two months. And for my surprise, after some time, when I checked the credit card informations on the app, I noticed I had some cents, which were increasing in value day by day, to be paid.

By now I don't understand why that happened. I just paid the debt faster as possible and right now I only use credit card to take advantage of the cashback feature on every purchases, although when I use this payment method the money is instantly taken from my account, just like it would work through a debit card. This way I can have access to the benefits, while avoiding the risks.

[Oilacris]

as far as I have experienced, as long as we can use it wisely then a credit card can be very helpful. we can withdraw cash from the card that we have with a certain limit. this is very useful for entrepreneurs who need money in an urgent time, especially if we have several credit cards so we can cover each other's bills, most of them are stuck with credit cards because they use them consumptively to pursue a lifestyle

Being wise on your spending should be the big word on here or the main thing on a certain credit card user because this isnt just something

that you do make use without even thinking because problems would be created if you arent wise or not sensible towards your spending actions.

You would really be making a big headache later on if you do find out that you would need to pay all of those interest after month.
So better be wise on your spendings is a must.

[dzonikg28]

which provide a decent cashback (I'll fill up my car once or twice a year for free).

That is the reason I have became a supporter of credit cards: cashback feature.

I really don't like to stay in debt and credit cards are very dangerous, as it's likely debt will hit you sooner or later, not exactly because you don't have money to pay for your expenses, but because you may forget it or the credit card can mysteriously trick you. It happened to me once: I had just paid for the purchases I made with my credit card during the month and didn't use it anymore for another one or two months. And for my surprise, after some time, when I checked the credit card informations on the app, I noticed I had some cents, which were increasing in value day by day, to be paid.

By now I don't understand why that happened. I just paid the debt faster as possible and right now I only use credit card to take advantage of the cashback feature on every purchases, although when I use this payment method the money is instantly taken from my account, just like it would work through a debit card. This way I can have access to the benefits, while avoiding the risks.

But aren't the cashback features all about collecting private data about you that then gets sold without you noticing?

Apart from that I think banks and governments both know quite well that there is value to people being in debt. Particularly when it comes to larger amounts, student loans and so on. Most people can't really enfold themselves fully even if they have great academic education just because they have to take on the next best job trying to pay back tens of thousands of dollars.

[Rufsilf]

as far as I have experienced, as long as we can use it wisely then a credit card can be very helpful. we can withdraw cash from the card that we have with a certain limit. this is very useful for entrepreneurs who need money in an urgent time, especially if we have several credit cards so we can cover each other's bills, most of them are stuck with credit cards because they use them consumptively to pursue a lifestyle

Being wise on your spending should be the big word on here or the main thing on a certain credit card user because this isnt just something

that you do make use without even thinking because problems would be created if you arent wise or not sensible towards your spending actions.

You would really be making a big headache later on if you do find out that you would need to pay all of those interest after month.
So better be wise on your spendings is a must.

Indeed, who would've want to be in much debts anyways, right? Even that alone wouldn't keep you from spending so much, the key is too discipline your self to avoid buying unnecessary things you might want or need. And buy only essentials that are mostly needed in everyday living. I mean, there's nothing wrong in spending your credit card as long as you're capable to pay the amount and interests entailed on what you've bought.

[1kodumtek7]

Credit cards are just a way to lure people into buying as many things as they would like. It may seem like you won't pay for the things while buying them. And this would be a really big problem for many people psychologically. Because people who are lured easily like this use it for more than they aimed to do and the result of it may not be very healthy in terms of financially for those people when it is time to pay up.