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abat6294 t1_izjp6g3 wrote

Reply to comment by [deleted] in When did it become okay to email you if you perform a transaction? by BF1shY

If you regular pay for things in cash, you are:

  1. Risking getting that cash stolen
  2. Risking losing that cash
  3. Wasting everybody's time as transactions take longer
  4. Losing out on cash back and other rewards that credit cards offer
  5. Hindering your credit score
  6. Forfeiting your ability to dispute any transactions
  7. Lessening your ability to track expenses.
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PLS-Surveyor-US t1_izjrl9j wrote

worst financial advice ever....

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abat6294 t1_izjt1hw wrote

Why's that?

It's evident the general public has no idea how to properly use credit cards. Everyone has been brain washed into thinking they're bad.

Yes, credit cards can ruin your life because they're interest rates are so high you can get out of it.

But what if I told you you can have credit cards, make free money by taking advantage of their cash back rewards, and pay $0 in interest in fees? Does that sound crazy?

Well it's not! Just pay the balance in full everyone month and it'll never accrue interest. Don't use your credit cards to buy things you can't afford (basically treat it like and a debit card - if the cash isn't in your account, don't buy it).

So if you have a credit card that offers 2% cashback and you use it to buy everything you would normally buy (groceries, gas, everything) and you pay it off every month - you will essentially be paying 2% less on everything.

Why would you not take advantage of that?

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fireball_jones t1_izjw1gd wrote

I agree with most of this but the "free money" is just a portion of the fees the credit card company is taking from the merchant which you're already paying for in higher costs.

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abat6294 t1_izm2uwq wrote

Right.

And if you pay in cash you pay for those higher prices without getting the cash back.

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PLS-Surveyor-US t1_izk5z6w wrote

Cashback programs are wonderful. Like free money from the sky. Where does it come from? The consumer pays 3% higher cost in product so the merchant can pay the CC fee. CC gives you 2% (keeps 1%) and the world rejoices. ... Its already your money and now you paint it as the reason to use a CC instead of cash. Your own first line says it all.

"It's evident the general public has no idea how to properly use credit cards."

Since most people carry balances they pay 15%+ to borrow short term...months or years. Therefore it is better for people to pay in cash for most expenses. Debit card is a better deal overall for what most people that don't want to carry around a lot of cash. You can build a a credit history through a bunch of other ways without needing a CC.

sorry your argument is flawed.

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Billh491 t1_izkrsd4 wrote

so you pay the 3% credit card fee in that it is built in to the price of the goods and services no matter if you pay cash or credit so I choose to pay with credit and get 2% back thus only having to pay 1% of the fee while cash users pay the whole 3%.

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abat6294 t1_izm39ze wrote

If you use cash, you are paying for the 3% credit card charge anyways.

Best to use a credit card that your being charged extra for and get the cash back.

Your argument is flawed.

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PLS-Surveyor-US t1_izo0jdq wrote

This is part of the reasoning why products have the 3% kick into them. You feel free to feed the monster. My argument is sound. I'll do what I do and recommend the same to others.

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[deleted] t1_izjqpr6 wrote

[deleted]

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abat6294 t1_izjs6hl wrote

  1. If your debit card/credit gets stolen, you can shut it off. Cash gets stolen, you're shit out of luck.
  2. You're paying with cash everywhere, but only have $20 bucks at any given time?
  3. I didn't say my time is more valuable than yours. Our time is equal, which is why it would be awesome if you got up to speed in today's world and stopped slowing everyone down.
  4. You don't understand how credit cards work. I earn $100s in cash back every year and pay absolutely $0 in interest and $0 in fees. If you pay your cards off on time every month, there is no interest and the cash back rewards are quite literally free money.
  5. Using credit cards in the quickest and easiest way to build credit. Your a silly person if your prefer to do things the hard way.
  6. Yeah I kind of stretched on this one. No one disputes in person transactions.
  7. You'll know how much you spent in total, but won't know what you spend it on.

No but seriously, point number 4 is the biggest reason. It's free money. And no the interest doesn't outway it because there is no interest if you pay on time. And it much bigger than $0.02.

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