Thread 33831889

Why would you go under debt for a fucking mobile phone? The only reason to go under debt is for things like house, education, and businesses, because those things count as investment, and there are loans for them.

To me it looks like only broke people who are behind their paychecks should be using credit cards, pay bills using credit card, and pay it back when you get the salary. But aren't these people really high risk? Why would the credit companies agree to give them credit cards?

Why would a person that doesn't fall in the above category use a credit card, and not just a simple debit card? Don't tell me that reward points and shit like that is why people use credit cards. There is no free lunch.

Because sometimes they need to buy something that they need but can't afford buying outright like a fridge or whatever and shit happens and they get behind on payments.

I used to buy everything with a debt card until a few years back until I noticed I could get free money by buying shit with credit, investing the value and then paying it next month. It takes discipline not to over spend and most people don't have it so they get into debt.

>>33831903

Ok lets exclude poor people. I can see why small quick loans might make sense for them. But why the rest?

About your point, using this method, you can only ever invest upto the amount you spend in a month. wouldn't the interest on that be negligible?

You use credit cards and always pay the balance in full at the end of the month. No costs, and you get all sorts of bonuses. Only idiots don't take advantage of credit cards.

>>33832188

Only people for whom the time they spend dealing with credit cards costs less than the amount they make, IMO.

Even then, I'm still not convinced that banks would just give you free money. Why? What's in it for them? Why am I getting multiple calls asking me to buy a credit card if I'm going to save money buy getting one? I guess the product companies pay credit card companies to boost sales for their stuff at a discount, but honestly this looks like a ponzi scheme to me.

>>33832188
This. Ive tried to explain this to so many friends, its amazing they missed it

Assuming you pay off your bill in full every time you could be getting these benefits for FREE
>insurance via chargebacks
>literal free money with cash back
>miles if thats your thing
>proxy credit card numbers for sus online purchases

>>33832256
Whats in it for them is that most people dont have the will power and end up paying interest. I assume therea more like attracting loyal customers to their banks but enough people must pay insurance that it outweighs the people that dont and get free handouts

so you build credit to have money for an unforeseen emergency, and to have real protection when you get fucked over buying something expensive (debit cards don't do shit if you're ripped off)

not hard to understand

>>33831889 (OP)
>What is the point of credit cards?
>Why would the credit companies agree to give them credit cards?
From a banking perspective, it may keep tabs on consumer purchases of certain income levels depending on which program, and from there, be able to make smarter money-related choices and calls for funding developing businesses around it — which may outweigh the cost of any average single individual holder. It also is able to monitor declining businesses and makes choices around it.

Similar loans are also not considered taxable depending on the place and circumstance, so it functions as some source of income.

>Why would you go under debt for a fucking mobile phone?
Sometimes, it's for a job.

>The only reason to go under debt is for things like house, education, and businesses...
It may not be wise to do so in some circumstances as well.

>...because those things count as investment
Perhaps if money spent is made back and grows in some level of strictness. Loans may also be an avenue to mitigate and transfer risk.

>To me it looks like only broke people who are behind their paychecks should be using credit cards, pay bills using credit card, and pay it back when you get the salary. But aren't these people really high risk?
Individually, yes; but it may also be good to know who they are paying it to, in what frequency, and if they are good chums or own it.

Being able to find these people and profile them early in life is advantageous and makes for good long-term study.

>Why would a person that doesn't fall in the above category use a credit card, and not just a simple debit card?
More doors open than fewer.

>>33831889 (OP)
>student loan debt
>investment
Not for the last 30 years.

>>33831889 (OP)
If you’re a person of means and pay as soon as charges are put on it, credit cards provide you with nothing but benefits. They increase your credit score, provide consumer protections and travel insurance, and offer a variety of cash back rewards.
If you’re not a person of means, but can be responsible with money, credit cards provide you with a safety net from unexpected expenses. Say you’re someone who lives paycheck to paycheck with a credit card with a 2k line and your computer dies, or you need to travel to take care of family business, or you’ve got a medical bill you want to take care of. You could go with a traditional loan with a better APR (although frankly, most personal bank loans these days have credit card levels of interest anyway), or if you have terrible credit, you might be forced to take a payday loan. Thankfully the credit line can bail you out, and while the interest rates are undoubtedly predatory, it makes pragmatic sense as an individual to have that lifeline.
As for irresponsible credit card users who max them out on frivolities, living beyond their means, going on vacations, hitting the bars, and eating fancy meals…
Well, can you really blame them? I’m not arguing it’s a “smart” personal choice, but people have had to grow up in a world where financial crises, political incompetence, and the perils of the free market have made economic life and the labor market exceedingly unpredictable. Many people watched as banks got bailed out en masse for their idiotic lending decisions in 2007/08, and the daily ways in which those in finance and industry break the rules to line their pockets. If the rich can make money out of nothing, why shouldn’t the poor be able to as well? If you think you’re a person with few prospects in life, or you have children or other loved ones that you want to create good memories and experiences with, why not just rack up that debt having parties and going on vacation?

>>33832256
>Only people for whom the time they spend dealing with credit cards costs less than the amount they make, IMO.
So most people? Because most people don't carry credit card debt and always pay it off and enjoy the bonuses.

>>33832256
The benefit is that for the 56% of customers who take advantage of those cashback rewards, they get 46% customers that get stuck with 20% interrest rates generating more money than they pay out.
When you get a credit card you're literally taking that bonus money from poor dumb people.
>t. get $250 a year in cashback from my credit card

>>33832939
Also from transaction fees

>>33832188
Yeah, its totally free, get a credit card now everyone!

>>33835142
>Don't get one with an annual fee.
>No interest if it's paid up at the end of the month
>No late fees if it's paid up at the end of the month
>No over limit fees if you're not retarded
>Foreign fees apply to debit cards too and there are cards with no annual fee and no foreign transaction fees
>Why would you use the credit card at an ATM
>Most cards don't have a replacement fee
>Other fees are for stupid people only

Fees are only for people with room temp IQ or a complete lack of self control. There's actual reasons not to use credit cards like every merchant will track all your purchase history and patterns so they can manipulate you into buying more.

>>33835222
>most have 100$-500$ annual fee, the free ones have more brutal apr, late fees, hidden fees etc.
>just never have an unexpected financial situations meanwhile 37% of credit card users had to pay late fees within 1 year
>credit cards make you spend more on useless shit because you don't feel the impact of losing money and the chase of "free money" cashback
>cash is king, that's why you need an atm

game over credit cuck.

>>33835222
>ACK

>>33835306
>most have 100$-500$ annual fee
Never even seen one over 99$ that wasn't obviously for businesses

>>33835315
Oh you live in a third world country where they don't just roll it into the price for everyone. Your cash purchases are subsidizing my credit card benefits so thank you.

>>33831889 (OP)
>The only reason to go under debt is for things like house, education, and businesses.
You should only buy what you can afford. Encouraging someone to go into debt is evil and really "nosey" if you catch my wave.

>>33835306
>>most have 100$-500$ annual fee,
which is totally worth it just for chargeback. seriously, if you could get a debit card with chargeback that alone would be worth several hundred dollars annual fee

this board is full of children that have never felt the pain of taking a cash loss on a bum water heater or A/C unit etc and it really shows

>>33835306
Found the neet who has never left his home state.

>>33835402
yes shlomo, i don't live in a country where prices are inflated because of credit cucks, we get stuff at a normal price and u ppl pay a premium to use that scam card.

>>33835477
>just spend 50k on shit to brake even bro

Tell me how you would book a vacation, with all the flights and hotels and other bookings, without a credit card. Sure you can, but there's no reason for me to not book everything myself online using my credit card. Bam, done. And it includes travel insurance too.