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PLS-Surveyor-US t1_izjrl9j wrote

Reply to comment by abat6294 in When did it become okay to email you if you perform a transaction? by BF1shY

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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