Credit cards | A scam or a tool?

[yhiaali3]

Concepts differ in different cultures and people, people are different in nature, some of them love debt and some cannot live with debt, some of them cannot buy a bicycle through debt, but rather save its price and then buy it, so we cannot judge credit cards completely because they provide good services for this The kind of person who wants to get things quick and easy with debt and then pay it back even though he knows he's paying a lot more than he'd pay in the case of a cash purchase.
Therefore, people who love debt can be told to use credit cards, but with caution so as not to drain their money. As for people who do not like debt, they should stay away from it completely.

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[Ultegra134]

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What's your thought about credit cards? Do you consider them a banking fraud,

How could this be a fraud?
What is the fraud in offering you a credit card?

I'm not considering credit cards a scam nor a fraud. On the contrary, however, there are quite a few people who blame credit cards and banks for their wrongdoing, they are a great tool if used correctly.

As you've already mentioned, credit cards are enabling you to pay pay a relatively small amount of money each month, rather than wait to save enough to buy it in advance.

[savetheFORUM]

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.

I am not really going to say that credit cards are bad, because sometimes when you are lacking funds and you are in need of money to sort out some issues, you are going to go to your credit card and have access to some funds there that would help you to be able to settle those issues and responsibilities that you’re having.

But, I’m going to say that if you can escape from making use of credit cards, then you should try as much as possible to escape from this Use of credit cards, because anyone that is making use of credit cards is going to be putting themselves into more debts, and as time goes on the interest that you’re going to have to pay for the debts you are getting will keep on increasing. So try your best to escape from it, and when you are able to do that then your growth have started.

[teosanru]

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?

Trust me if you know how to use a credit card wisely and smartly, it's just free money that the Banks are lending you for 60 days or so. But if you are not financially wise and don't know how to manage your credit cards wisely they will ruin your financial status, not only will you end up paying very exorbitant interest rates but also will be spoiling your credit scores at various instances and not only this you will be tricked into spending much much more than what you have especially if you are being offered the facility of EMI where you can split the expenditure into monthly payments, this mentality of living paycheck to paycheck is really bad and credit cards are the prime reason people get stuck in them.

[alpamar99]

In fact, this credit card is actually like making it easier for us to buy something in installments in my opinion.
because we are sometimes so affectionate when buying at a fairly high price directly and this of course can be maximized with credit.
because with this we can minimize by paying little by little but for some time.

[Ultegra134]

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?

Trust me if you know how to use a credit card wisely and smartly, it's just free money that the Banks are lending you for 60 days or so. But if you are not financially wise and don't know how to manage your credit cards wisely they will ruin your financial status, not only will you end up paying very exorbitant interest rates but also will be spoiling your credit scores at various instances and not only this you will be tricked into spending much much more than what you have especially if you are being offered the facility of EMI where you can split the expenditure into monthly payments, this mentality of living paycheck to paycheck is really bad and credit cards are the prime reason people get stuck in them.

I know for a fact that most people aren't using them correctly, I've even seen it from my environment. It's definitely not free money, but I get what you mean, via credit cards, you're basically given an interest free loan, provided that you're careful enough when using them. I've also managed to postpone doses, by buying something the last day of the month, right when the monthly bill is issued. We don't have the credit score system here, I've mostly seen it in the USA if I'm not mistaken.

[Tumanggor]

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

[RealMalatesta]

Credit is how you get rich normally, but credit cards are not what you are getting rich on, because you do your regular payments with it. If you can get a credit card with near zero rate, then you could spend that, put your money into savings, earn for a month, and take it out paying your debt back. This means depending on where you live, you have made from 0.1% to 2% profit based on where you live. Of course it is tiny, of course is nothing, but if you put all of that into savings back again each month, imagine doing this for 30 years? Or 40 or 50? Then you will accumulate a good deal. Wealth by simply being a worker is not easy, it takes decades and you end up with few houses at best, which is still good but not super wealthy with giant yacth wealthy.

In order to be doing well, you need to take advantage of all these situations and even credit cards. Considering something is cheaper now, and more expensive later, you could literally get into debt now, but could be spending less as well.

[KennyR]

Credit cards were a money making tool in the banking industry. I don't say it never helps, the credit card have served to be life saving for many people. Same time it also have got more flaws on the interest. At times even the people who doesn't want one were also forced to take a Card and they start using it unwanted. Later this itself turns to be a headache for them.

It is a way to trigger the common people to spend money.

[Obito]

This depends on your wealth and social status, if you're a middle class or poor like 99% of the population, I think that it's safe to say that credit cards for us is a scam because credit cards were designed not to be paid and that the credit's interest pile high so as to make sure that credit card companies siphon as mucch profit as they can like a parasite they are, no matter how you look at it if you're part of the 99% I think that credit card is going to be a problem for you.

[michellee]

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

What you say is right. We need to be wise using a credit card because the credit card is just a tool and give easiness to us to pay something without using our money but at the end of the month, we still need to that debt to the credit card company plus the fee. Because of the easiness to pay anything we want, we can forget to control the use and make us pay a lot of money at the end of the month. I still prefer to use a fiat or debit card because that gives me an allowance to control the use of my money.

[Koro-Sensei]

It solves convenience so for me its not a scam. The problem is when you don't pay it in time and thats where interest goes up and up. But nonetheless, its interest are way higher than typical bank lending so it might suck up your money. Its just up to you to discipline yourself in spending and knowing your limits.

[geegaw]

I have used a credit card but if we are not wise in using it then our debt will pile up

I stopped using credit cards when the interest on my debt seemed eternal and never paid off even though I always paid on time, since then I realized that credit cards are just a bank tool to bind users

Be wise to use a credit card, don't use it to spend on luxury items that are not important

Unfortunately, most people who use credit cards regularly spend lavishly, especially young people who are too fond of trendy styles and expensive electronics, in order not to feel inferior in front of friends and family, they often buy products that exceed the allowable and affordability of monthly income, the external appearance made them not focus on risks and unexpected occurrences. Credit card is really a perfect tool for banks and stores, one side can increase sales, the other side can increase monthly revenue while users are very disadvantaged and easily delusional due to having a virtual budget ready to cater to their desires

[Alisha-k]

Just like everyother thing, credit cards also have their advantages as well as disadvantages, it is true that it is a very profitable tool to financial institutions and most times causes the masses to spend unnecessarily but that only happens if the individual in possession of the credit card isn't mindful of the expenses the make, to own a credit card, you have to be extremely careful as regards what you purchase other wise, you'll only be crediting the financial institutions.

If you plan your puchases and don't spend more than you would be able to refund, also try to pay each debt in full by the end of the month, you'll be reducing the interest rate charges on your card.

[eaLiTy]

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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?

The trick is not over use the credit card and get stuck without repaying them. I know many that used to card during the pandemic and then got stuck because they are not getting their salary on time, but then there are options provided by the credit card company during that period, but then there are many that lost their job and how they are going to repay them if you have taken a huge credit. So be wise before using them and if you can do that, it is a great tool.

[Ultegra134]

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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?

The trick is not over use the credit card and get stuck without repaying them. I know many that used to card during the pandemic and then got stuck because they are not getting their salary on time, but then there are options provided by the credit card company during that period, but then there are many that lost their job and how they are going to repay them if you have taken a huge credit. So be wise before using them and if you can do that, it is a great tool.

The trick is to not get stuck in a loop of purchasing items you don't need, which is extremely common when installments take place. Especially during the pandemic, with shops closed, online purchases covered the majority of transactions. It's best if they are used to cover large bills (electricity, insurance and so on), with installments, as it eases the month's budget.

[Silberman]

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?

Personally I have never owned one precisely because of the points you bring, in the right hands a credit card can be a good way to have some credit just when you need it the most, however if you are the kind of person that saves their money and has investments and you control what you spend with a budget then it is unlikely you are going to need it, however most of the people do not use their money that effectively and as such use credit in general in the wrong way, not realizing that if they could have waited for a few months and buy what they wanted with cash they will save themselves a lot of interests and buy more stuff that way.

[Danydee]

 I want to point to the fact of, so, either with credit or debit cards,
 In a first side merchant needs to pay fees to become accepting them
 In other side when paying with cash there's usually a tax for doing so

 So a tool to pump money from the people?
 And over onwards, a tool to take control over people money?

[bitzizzix]

In my opinion, a credit card is a means of payment that makes it easier for us if used wisely and also must understand its use properly and correctly.
and credit cards are one of the conveniences offered by banks to borrow and borrow goods, and but we must remain vigilant when we have a credit card, if we are not wise in using it, it is not impossible that we can get into debt that will never be paid off if we use it haphazard.

[fiulpro]

For me personally I do think that credit cards are actually something that might be useful if used correctly, undoubtedly they expect you to spend money that you don't have, but at the end of the day, you do have to return the money as well therefore you have to understand the fact that they are more like you are borrowing money, sometimes it's also very lenient with the interest as well, some of them have like 0% and easy down payment so it might be good for you if you are a student and want to invest in some things, travel as well, it would give you more opportunities. It's not scam perse but it depends on how you use it and when you use it. I do think it might not be the lifestyle of every other person you see here but in some countries it's very essential, for uk you cannot even make VISA payments using your debit cards, you would need a credit card for that.