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(Time)   Most Americans still have no idea how much interest their credit cards actually charge them   (time.com) divider line
    More: Facepalm, financial crisis, Late-2000s recession, new study, basic financial literacy, National Capability Study, Americans, FINRA Foundation, unpaid medical debt  
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3643 clicks; posted to Main » and Business » on 14 Jul 2016 at 12:16 AM (4 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2016-07-14 10:32:12 AM  

prickly pete v2: Madman drummers bummers: Public Savant: Whe the fark don't americans just use debit cards?!

You only spend what you have.
What's not to get?

1. As someone else pointed out, debit cards lack the fraud and purchase protection of credit cards. You get bad charges on a debit card, you're screwed. You get bad charges on a credit card, you're out maybe $50. Maybe nothing.

2. Every time I use my credit card, I get 1.5% of the amount back in cash. Since I pay the balance in full, and there's no annual fee, they're paying me to use the credit card. Actual free (to me) money, no strings attached.

3. Last I heard, it costs merchants more to run a debit card than a credit card, so it sucks for merchants, and for everyone else when they have to raise prices to compensate.

4. It sucks, but emergencies do happen. And of course, being fiscally responsible, you have three months' worth of expenses socked away in an interest-bearing account to cover them, right? Great. But this emergency will cost you six months' worth of expenses. Now what do you do? Yeah, sometimes it's nice to be able to carry a balance if circumstances warrant.

5. It's dead easy to keep track of your spending, what with being able to download statement and recent activity into an xls or quicken file. You also need to track your expenses if you only want to "spend what you have" using a debit card. With the same amount of effort, and less self-control than it takes to drag your ass into work each day, you still only spend what you have.

So that's why this American doesn't use a debit card. Unless something changes several of the above points, I would never use a debit card.

I recently switched banks to one (Nicolet Bank - based in northeast WI) that will pay 3.00% interest on balances up to $15000 if you use your debit card at least 10 times a month. And the grocery store I frequent (Woodman's) doesn't take credit cards, so it works out beautifully.


That sounds good, but does it pay? 3% interest on $10,000 is $300, which over a year is $3600 - fantastic. But to enjoy that benefit, you have to make 10 transactions a month using the debit card. Does it have a transaction minimum? I guess you could pay for 10 packs of gum/ bottles of water a month and come out ahead, but I could see most people spending more than the total amount of interest earned.
 
2016-07-14 10:33:04 AM  

Telos: OK, fine, sure - I can see that they're not going to get a lot of money from me, so I'm not as desirable a customer. They want to see 21+ credit accounts for an "excellent" rating. Who in the hell is maintaining twenty or more credit lines? That's ludicrous.

Yes, that would be ludicrous. Which is why it isn't true. I have an 800+ credit score with, like, 2 credit cards, a mortgage and a home equity line of credit.


It's not like I'm making it up... the fact that other factors come into play doesn't make what I said somehow incorrect.

i64.tinypic.comView Full Size
 
2016-07-14 10:35:41 AM  

FormlessOne: Telos: OK, fine, sure - I can see that they're not going to get a lot of money from me, so I'm not as desirable a customer. They want to see 21+ credit accounts for an "excellent" rating. Who in the hell is maintaining twenty or more credit lines? That's ludicrous.

Yes, that would be ludicrous. Which is why it isn't true. I have an 800+ credit score with, like, 2 credit cards, a mortgage and a home equity line of credit.

It's not like I'm making it up... the fact that other factors come into play doesn't make what I said somehow incorrect.

[i64.tinypic.com image 590x463]


Like I said, I get it - because I won't keep open accounts, I'm less desirable when it comes to credit lines. But, my credit score's getting used for more than just "will he generate money if I give him a line of credit." That's my gripe - and it's mildly irritating.
 
2016-07-14 10:45:24 AM  
I asked this question upthread - seriously, those of you who don't make any purchases with plastic, aren't you kind of shooting yourselves in the foot? There are serious bargains to be had online, and I'm not talking about drunk one-click ordering from Amazon. For example, I buy running shoes on a regular basis. At MSRP, most models are now over $100. But there are sites that offer deep discounts, meaning that I can score stuff I would have to buy anyway for 40, 50, or 60% off.

Also, how the heck are you making travel reservations?
 
2016-07-14 10:46:25 AM  
Farkers are all in their forties and live in households with six-figure incomes, so the interest rate is moot to us.  We choose cards that have good fringe benefits like cash back or frequent flyer miles, and pay in full every month.
 
2016-07-14 10:54:00 AM  

RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.


+1
 
2016-07-14 11:00:53 AM  
Not only do I not own a TV, I drive an environmentally sound vehicle, and I pay my balance in full (if I have one) every month.  *shrug*

/I'm just better than you.
/Sorry.  Don't hate the player, hate the game.
 
2016-07-14 11:02:19 AM  

Nogale: prickly pete v2: Madman drummers bummers: Public Savant: Whe the fark don't americans just use debit cards?!

You only spend what you have.
What's not to get?


...

I recently switched banks to one (Nicolet Bank - based in northeast WI) that will pay 3.00% interest on balances up to $15000 if you use your debit card at least 10 times a month. And the grocery store I frequent (Woodman's) doesn't take credit cards, so it works out beautifully.

That sounds good, but does it pay? 3% interest on $10,000 is $300, which over a year is $3600 - fantastic. But to enjoy that benefit, you have to make 10 transactions a month using the debit card. Does it have a transaction minimum? I guess you could pay for 10 packs of gum/ bottles of water a month and come out ahead, but I could see most people spending more than the total amount of interest earned


Well, it is 3% annual, not monthly, so your example would be $300 per year. But that is better than the $1.13 we made all of last year on checking account interest. There is no minimum purchase amount and I have to use debit cards for groceries anyway, so I just need to make sure it is 10 times per month. I'll continue to use the rewards CC (paid off monthly, of course) I have for other purchases.
 
2016-07-14 11:04:58 AM  

poot_rootbeer: Farkers are all in their forties and live in households with six-figure incomes, so the interest rate is moot to us.  We choose cards that have good fringe benefits like cash back or frequent flyer miles, and pay in full every month.


Hey, that's simply untrue! I'm only 39...
 
2016-07-14 11:06:26 AM  

Nogale: I asked this question upthread - seriously, those of you who don't make any purchases with plastic, aren't you kind of shooting yourselves in the foot? There are serious bargains to be had online, and I'm not talking about drunk one-click ordering from Amazon. For example, I buy running shoes on a regular basis. At MSRP, most models are now over $100. But there are sites that offer deep discounts, meaning that I can score stuff I would have to buy anyway for 40, 50, or 60% off.

Also, how the heck are you making travel reservations?


...you do realize that most debit cards work online, right?

I use a debit card, for an account specifically meant for online purchases. (I practically live online these days - agoraphobia will do that to you.) I used to keep a PayPal account, but it got hit by someone who thought that four thousand dollars in fraudulent purchases on my dime was a good idea, and I spent weeks dealing with it because PayPal customer service sucks.

So, I work with a bank that's happy to provide fraud protection on my account, and my debit card works just fine for reservations, online purchases, and so on. Works like a credit card, without all that pesky usury.
 
2016-07-14 11:11:57 AM  

FormlessOne: Telos: OK, fine, sure - I can see that they're not going to get a lot of money from me, so I'm not as desirable a customer. They want to see 21+ credit accounts for an "excellent" rating. Who in the hell is maintaining twenty or more credit lines? That's ludicrous.

Yes, that would be ludicrous. Which is why it isn't true. I have an 800+ credit score with, like, 2 credit cards, a mortgage and a home equity line of credit.

It's not like I'm making it up... the fact that other factors come into play doesn't make what I said somehow incorrect.

[i64.tinypic.com image 590x463]


Yes and no. If you were to go open 20 more accounts, it would lower your average account age, which would also impact your score. This impact would be worse than the impact of having few accounts.
 
2016-07-14 11:27:17 AM  

Nogale: I asked this question upthread - seriously, those of you who don't make any purchases with plastic, aren't you kind of shooting yourselves in the foot? There are serious bargains to be had online, and I'm not talking about drunk one-click ordering from Amazon. For example, I buy running shoes on a regular basis. At MSRP, most models are now over $100. But there are sites that offer deep discounts, meaning that I can score stuff I would have to buy anyway for 40, 50, or 60% off.

Also, how the heck are you making travel reservations?


Based on the math ability you have demonstrated thus far I am having a tough time believing you are saving anything on any purchase and must instead be wearing out what are clearly Chinese knockoff running shoes running away from developing any further proficiency in basic math.
 
2016-07-14 11:48:33 AM  

RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.


Subbie got it wrong.  The article is actually saying people don't know how to calculate the interest, not that they don't know the interest rate.

MBZ321: Another comment here from someone who has never paid a dime in interest on a credit card. Although I recently opened a new Costco credit card and I think I saw it's around 15% after the promo period, so I'll just assume most cards are the same, if not higher.


Yeah.  I don't pay attention to the interest rate because I'm not going to pay interest in the first place but that's my impression of CC rates.  Many are even higher.

Harry_Seldon: I saw the house bubble burst coming, so I sold my house in 2006 for a $250k profit,


I'm still kicking myself over not selling.  I saw the crash coming, I just didn't see the size of it.  Had we sold when I was thinking about it we would have netted around $200k after figuring living in a rental while the sky fell in.

Madman drummers bummers: Mithiwithi: Y'know, it's amazing how so many Farkers always pay off their credit cards in full every month, and none of us ever is foolish enough to carry a balance.

Pretty sure there are plenty of balance-carriers around, but most of them are shamed into not admitting it.


And they probably don't stick their noses into financial threads in the first place.

cygnusx13: I should also say:

Most Americans can't read or write in their native language

Most Americans can't find Iraq on a map

Most Americans believe in creation myths

Most Americans can't name 10 elements on the periodic table

Most Americans have never travelled outside of the United States

That they can't or won't read a CC statement shocks me!


Are you saying I'm not an American?

English--obviously I can.  Iraq--I've flown over it even.  I can name far over 10 elements.  I'm on my 5th passport, the previous four were pretty much filled--two of them extra page versions, two with pages added.  The world is changing, the ratio of trips to pages used is going up considerably so we might not need the extra pages this time around but better safe than sorry.  (Especially as you can't add pages anymore.  Fill your passport and it's another $110 for a new one.)
 
2016-07-14 12:05:10 PM  

Vaginosilicosis: Credit is a tool, nothing more or less.   If you are too stupid to use a particular tool then don't use it, pretty simple.   Acting like being free of credit cards is some sort of moral superiority is no different than a cult that lives in cold and dark because "fire bad" and feels righteous about it.

There is a level beyond using cards, paying off every month and not incurring interest.   There is a system to be followed that reaps rewards if you use it properly.

We have an AMEX that is 6% cash back on our first $6k of groceries every year so its the grocery card until that amount is reached, they are farkers and charge a fee that equates to 1.25% of that $6k but its still a $285 net win every year.

In just the last year we have taken offers to open new cards of the "spend xxx in the first 3 months and get an xxx statement credit" type and just use it in place of our normal spending until its fullfilled and the credit received.   On 5 cards between my wife and I this has brought in $1250 in free money for nothing more than a little few minutes on the phone or computer and a minor temporary ding on our credit.   No interest, no fees, just a little bit of paying attention and free money.

Last month one of my existing cards that is gathering dust sent me the balance transfer checks with the offer of 18 months of zero percent and a 2% transfer fee instead of 3%.     So I took $24k, leaving enough margin for the $480 fee to be charged and I put their $24k in a municipal bond fund that is dull as dishwater and was yielding 4.5% at the time I parked it.    Over 18 months it will return ~ $1600, over an $1100 profit, federal tax free.

Just these 3 things are going to be a $3000 bump to our bottom line over 2 years and were about as complicated as playing a few hours of Pokemon Go to set up.    We do a few more things like this, nothing we buy doesn't come with some sort of kickback, it would be foolish to ever pay cash for anything that isn't a parking meter.    Most years we get about $1200 in various kickbacks, its not hookers and blow money but it doesn't suck, its amounts to essentially a sales tax refund on everything we buy.

So continue bragging about not using credit all you want, I'm sure its satisfying in its own way...pity you can't spend smug though..


Speaking of tools, look in the mirror.

Credit cards are a stupid game keep on keeping on without worrying. game. Your post is a great example of people who play this stupid game of chasing points and freebies all in the name of the almighty FICO score. you borrow money to raise your score so you can borrow more money. Then, when the economy takes a hit, and you lose your job, the whining starts about how unfair it is bills and obligations can't be met. Meanwhile, those of us who don't play the game live in smug comfort.
 
2016-07-14 12:09:46 PM  

Gary-L: Meanwhile, those of us who don't play the game live in smug comfort.


Well, comfort, anyway. It's hard to be smug when you realize that, although the game's rigged, he's still benefitting because he's playing it.
 
2016-07-14 12:15:54 PM  

Gary-L: Speaking of tools, look in the mirror.

Credit cards are a stupid game keep on keeping on without worrying. game. Your post is a great example of people who play this stupid game of chasing points and freebies all in the name of the almighty FICO score. you borrow money to raise your score so you can borrow more money. Then, when the economy takes a hit, and you lose your job, the whining starts about how unfair it is bills and obligations can't be met. Meanwhile, those of us who don't play the game live in smug comfort.


LOL. I'm  guessing the "smug comfort" of not having a home? I'll take my debt, which amounts to a mortgage on a two-family house I rent out to (more than) cover said mortgage.

Actual comfort + profit > smug comfort
 
2016-07-14 12:17:11 PM  
spend a lot on my card but use AMEX only so have to suck it up and pay each month.
 
2016-07-14 12:24:15 PM  
 I just paid $100 towards one of my cards, so after it clears tomorrow, I will have $78, to go buy the weeks groceries with.

/not really, but there was a time ....
// self employment can be a biatch sometimes.
 
2016-07-14 12:35:26 PM  

Bullseyed: Quick: If you take out a $1000 loan that has a 20% rate, how much will you owe a year in interest?
Answer: $200. But if you got that wrong, you're not alone.

Apparently not alone, as TFA got it wrong too.

The answer to the question is that there is not enough information to provide an answer. We are not given the amortization schedule for the loan, and it even goes as far to say "rate" instead of "APR".

Since the subject is credit cards, we assume compounding occurs monthly. This means at the end of one year, if we make no payments until then, we would owe $1,219.39.

If we make monthly payments of equal value that will lead to the loan being paid off in one year, we'd pay $92.63 per month, leading to a total interest payment of $111.61 on the $1,000 loan.


So glad I'm not the only one getting an eye twitch over that. Rate per what?
 
2016-07-14 12:43:40 PM  

Gary-L: Speaking of tools, look in the mirror.

Credit cards are a stupid game keep on keeping on without worrying. game. Your post is a great example of people who play this stupid game of chasing points and freebies all in the name of the almighty FICO score. you borrow money to raise your score so you can borrow more money. Then, when the economy takes a hit, and you lose your job, the whining starts about how unfair it is bills and obligations can't be met. Meanwhile, those of us who don't play the game live in smug comfort.


I fly to Europe once a year on CC points, I never pay a red dime in interest.

How does that happen? Well, for one thing, vendors increased their prices to cover CC fees. Funny bit is, you pay those prices as well. In effect, part of that plane ticket is generously sponsored by those who live in "smug comfort". So - thanks.
 
2016-07-14 12:46:43 PM  
0% APR

My cards keep offering me 0% APR promotional periods every time I pay one off, so I keep my balance on whichever one is doing that. (only fee I end up paying is a 3% balance transfer every other year).
 
2016-07-14 12:58:12 PM  

snowjack: That's amazing... hard to believe, even. It's tough to get even a secured vehicle loan much below 4.5% without a subsidy from the vehicle manufacturer.


Shop around near the end of the fiscal quarter. Lots of short term financing coming up from local credit unions and the midsize players in auto loans get brought out because the lending agencies need to hit some expansion goal. As long as the dealer is doing soft inquiries in a short period of time, most banks will look at it like one giant inquiry and not hurt your score.

I financed my 2013 Dodge Dart at 3.05% for 72 months and I'm under 30 with around a 710 score. I pay enough every month to have it paid off in 60, but it's nice having the option to cut back and make the minimum if I need to.

/Works at a car dealership
 
2016-07-14 1:24:32 PM  

Erik_Emune: How does that happen? Well, for one thing, vendors increased their prices to cover CC fees. Funny bit is, you pay those prices as well. In effect, part of that plane ticket is generously sponsored by those who live in "smug comfort". So - thanks.


I really can't wait until Walmart etc. manage to get the federal government to allow them to surcharge whatever they want for credit card purchases. You know it's coming.

/right now they can, but only up to however much it costs them to run your card.
//and only in some states.
 
hej
2016-07-14 1:35:33 PM  
Zero.
 
2016-07-14 1:43:08 PM  

FormlessOne: It's not like I'm making it up... the fact that other factors come into play doesn't make what I said somehow incorrect.

[i64.tinypic.com image 590x463]


The difference between 5 accounts and 21 is probably like 3 points.
 
2016-07-14 1:47:05 PM  

MetalMen: bdub77: RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.

I have no idea either for that exact reason. I pay off my credit card every month on the due date.

This confuses me. Doesn't everyone do this?


Aside from the people who try to live beyond their means, there are people who somehow go the idea that carrying a balance builds your credit faster. Unsurprisingly, these people have very low credit scores.
 
2016-07-14 1:50:23 PM  

Demetrius: I used to have Capital One. They had a pretty low rate, then for no reason they jacked up my rate ridiculously high to somewhere around 17-18%.  I have fantastic credit and never did I miss a payment.  I don't carry much of a balance at all which I'd like to imagine is part of the problem, but in reality it's not. They're just farking greedy.  So instead of making the 3% interest on all my charges and a nominal monthly amount, now they get zero.  Fark them.  I moved my credit cards and now I'm paying down around 8% on the times when I do carry a balance.

Go fark yourselves, Capital One.  Fark yourselves with a big stick of salt-encrusted razors.


Actually, that's precisely why they raised your rate, because you were not carrying enough debt for them to make a profit off you.

Just like my personal favorite situation where I went to my bank to get a loan for a used car. They would not approve a loan for the $5k I need, yet they were willing to offer me a $25k loan....
 
2016-07-14 1:51:21 PM  

BMFPitt: FormlessOne: It's not like I'm making it up... the fact that other factors come into play doesn't make what I said somehow incorrect.

[i64.tinypic.com image 590x463]

The difference between 5 accounts and 21 is probably like 3 points.


The real irony is that they want you to have multiple accounts but only have 25% or less of your credit in use, otherwise another ding on your score (which is my personal cross to bear at the moment).
 
2016-07-14 1:58:53 PM  

Loreweaver: Demetrius: I used to have Capital One. They had a pretty low rate, then for no reason they jacked up my rate ridiculously high to somewhere around 17-18%.  I have fantastic credit and never did I miss a payment.  I don't carry much of a balance at all which I'd like to imagine is part of the problem, but in reality it's not. They're just farking greedy.  So instead of making the 3% interest on all my charges and a nominal monthly amount, now they get zero.  Fark them.  I moved my credit cards and now I'm paying down around 8% on the times when I do carry a balance.

Go fark yourselves, Capital One.  Fark yourselves with a big stick of salt-encrusted razors.

Actually, that's precisely why they raised your rate, because you were not carrying enough debt for them to make a profit off you.

Just like my personal favorite situation where I went to my bank to get a loan for a used car. They would not approve a loan for the $5k I need, yet they were willing to offer me a $25k loan....


So you take the loan and pay the balance you don't use, greatly reducing the interest.
 
2016-07-14 2:39:26 PM  

kevljo: The real irony is that they want you to have multiple accounts but only have 25% or less of your credit in use, otherwise another ding on your score (which is my personal cross to bear at the moment).


What part of that is ironic?
 
2016-07-14 2:45:17 PM  

Loreweaver: Demetrius: I used to have Capital One. They had a pretty low rate, then for no reason they jacked up my rate ridiculously high to somewhere around 17-18%.  I have fantastic credit and never did I miss a payment.  I don't carry much of a balance at all which I'd like to imagine is part of the problem, but in reality it's not. They're just farking greedy.  So instead of making the 3% interest on all my charges and a nominal monthly amount, now they get zero.  Fark them.  I moved my credit cards and now I'm paying down around 8% on the times when I do carry a balance.

Go fark yourselves, Capital One.  Fark yourselves with a big stick of salt-encrusted razors.

Actually, that's precisely why they raised your rate, because you were not carrying enough debt for them to make a profit off you.

Just like my personal favorite situation where I went to my bank to get a loan for a used car. They would not approve a loan for the $5k I need, yet they were willing to offer me a $25k loan....


Part of that is the vehicle itself. If you buy a brand new car and default on the loan sometime in the first few years they can repossess and sell the car much easier, so it's less risk. When you're buying a $5000 vehicle, there may be less risk in the dollar amount, but there's more risk that they'd be able to recover anything if you defaulted.
 
2016-07-14 2:52:55 PM  
Dear Time,

   About that "basic financial literacy"? Um, that interest on that credit is *compound* interest.

   And then there's the games they play, and some are *much* nastier than others. For example, there was a card I'd had for literally 30 years. The account had been sold 3? 4? times, and then DMC? something like that, *then* they sold the servicing of that account to HSBC (and how do they make money off that?). I'd been paying it off, on the occasions when I used it. First, HSBC raised my interest rate to "Mafia (tm)", 25%. (You don't like that? You can always close the account....) Then, when I didn't use it in the next nine months or so, they cancelled my card. I got a letter (snail-mail). It had *no* other contact info. When I sent them a letter to complain, the Post Office bounced my letter, "no such address/PO box". (Isn't that illegal?)

But then, I suppose HSBC was making so much more laundering money for crooks and unsavory nations (which the feds busted them for the next year).
 
2016-07-14 3:01:33 PM  

BMFPitt: kevljo: The real irony is that they want you to have multiple accounts but only have 25% or less of your credit in use, otherwise another ding on your score (which is my personal cross to bear at the moment).

What part of that is ironic?


The part where they want you to have multiple accounts coupled with the part that they don't want you to use them, I guess???
 
2016-07-14 3:09:06 PM  

RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.


Mine could be 436% and I wouldn't know. I just pay the balance every month and save up the points for free stuff.
 
2016-07-14 3:31:27 PM  
I just looked on Credit Karma and I'm at 2% utilization of my available credit.  The farked up thing is I bet it would actually raise my credit score if I raised that utilization.
 
2016-07-14 3:35:13 PM  

kevljo: The part where they want you to have multiple accounts coupled with the part that they don't want you to use them, I guess???


They want a large sample size of your payment history, and they don't want it to show that you max yourself out.

Seems rational.
 
2016-07-14 3:45:11 PM  

BMFPitt: kevljo: The part where they want you to have multiple accounts coupled with the part that they don't want you to use them, I guess???

They want a large sample size of your payment history, and they don't want it to show that you max yourself out.

Seems rational.


It would seem rational to me if they didn't define 25%+ utilization as "maxing yourself out".  My credit score takes a beating (to the tune of 40+ points) because I'm using the credit being extended to me (I'm slightly below 50%, btw)?  Seems contrarian to my feeble brain.

Probably explains why I'm not in banking.
 
2016-07-14 3:48:35 PM  

chicken nugger: I just looked on Credit Karma and I'm at 2% utilization of my available credit.  The farked up thing is I bet it would actually raise my credit score if I raised that utilization.


Don't feel bad credit karma says that I need to have more credit accounts to up my score. Thankfully I have an open line of credit with my bank that I can tap as needed that is at 3 month Libor +1.75% so I am getting a kick out of all this.
 
2016-07-14 4:33:18 PM  

sdd2000: Don't feel bad credit karma says that I need to have more credit accounts to up my score. Thankfully I have an open line of credit with my bank that I can tap as needed that is at 3 month Libor +1.75% so I am getting a kick out of all this.


Credit scores are so weird.  Mine has recently dropped 6 points to 807 when there has been absolutely no change to my situation other than making a payment or two.
 
2016-07-14 4:36:57 PM  

Harry_Seldon: Nogale: I'm always tempted to fill out an application using the dog's information and her paw print signature and see if they'll send her a card. She's not a minor in dog years. Would that be fraud?

Is your dog capable of making informed consent?


Depends if peanut butter is involved.
 
2016-07-14 4:43:36 PM  

Public Savant: Whe the fark don't americans just use debit cards?!

You only spend what you have.
What's not to get?


Thank you sage wiseperson.
 
2016-07-14 4:59:11 PM  

raerae1980: I dont know and no, i dont pay mine off every month.    *shrugs*


Stop that at once. You're letting a bunch of gawddam scum-sucking parasites bleed you forever, or at least until you file for bankruptcy. You don't know what the interest rate is, but I can pretty much guarantee that it makes student loan debt look cheap. If your husband is contributing to the problem, do whatever you need to do to get him to stop not helping, too. People almost always have way more stuff than they actually need. I know I do. Quit buying things. Eat Top Ramen if you have to. Pay off the farking cards and keep them that way. Don't give the already too big and too powerful financial industry in this country any more of your disposable income than you absolutely have to.
 
2016-07-14 5:04:58 PM  

Loren: cygnusx13: I should also say:

Most Americans can't read or write in their native language

Most Americans can't find Iraq on a map

Most Americans believe in creation myths

Most Americans can't name 10 elements on the periodic table

Most Americans have never travelled outside of the United States

That they can't or won't read a CC statement shocks me!

Are you saying I'm not an American?

English--obviously I can.  Iraq--I've flown over it even.  I can name far over 10 elements.  I'm on my 5th passport, the previous four were pretty much filled--two of them extra page versi ...


Well, you have on part down pat...
 
2016-07-14 6:06:28 PM  

RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.


Thread over in one.
 
2016-07-14 6:20:17 PM  

The hopeless imp: Loreweaver: Demetrius: I used to have Capital One. They had a pretty low rate, then for no reason they jacked up my rate ridiculously high to somewhere around 17-18%.  I have fantastic credit and never did I miss a payment.  I don't carry much of a balance at all which I'd like to imagine is part of the problem, but in reality it's not. They're just farking greedy.  So instead of making the 3% interest on all my charges and a nominal monthly amount, now they get zero.  Fark them.  I moved my credit cards and now I'm paying down around 8% on the times when I do carry a balance.

Go fark yourselves, Capital One.  Fark yourselves with a big stick of salt-encrusted razors.

Actually, that's precisely why they raised your rate, because you were not carrying enough debt for them to make a profit off you.

Just like my personal favorite situation where I went to my bank to get a loan for a used car. They would not approve a loan for the $5k I need, yet they were willing to offer me a $25k loan....

So you take the loan and pay the balance you don't use, greatly reducing the interest.


Car loans don't work that way. The car becomes the collateral for the loan, so you can't borrow more than a small percentage over the value of the car you are getting the loan for.
 
2016-07-14 6:31:33 PM  

jaylectricity: Loreweaver: Demetrius: I used to have Capital One. They had a pretty low rate, then for no reason they jacked up my rate ridiculously high to somewhere around 17-18%.  I have fantastic credit and never did I miss a payment.  I don't carry much of a balance at all which I'd like to imagine is part of the problem, but in reality it's not. They're just farking greedy.  So instead of making the 3% interest on all my charges and a nominal monthly amount, now they get zero.  Fark them.  I moved my credit cards and now I'm paying down around 8% on the times when I do carry a balance.

Go fark yourselves, Capital One.  Fark yourselves with a big stick of salt-encrusted razors.

Actually, that's precisely why they raised your rate, because you were not carrying enough debt for them to make a profit off you.

Just like my personal favorite situation where I went to my bank to get a loan for a used car. They would not approve a loan for the $5k I need, yet they were willing to offer me a $25k loan....

Part of that is the vehicle itself. If you buy a brand new car and default on the loan sometime in the first few years they can repossess and sell the car much easier, so it's less risk. When you're buying a $5000 vehicle, there may be less risk in the dollar amount, but there's more risk that they'd be able to recover anything if you defaulted.


Value point, though in this case:
- I had been with that bank for 15 years.
- They had a complete history of my income, expenses, account balances, and credit history.
- The $5k I was asking for was only half the cost of the vehicle (I had the other $5k in my savings). So they refused a $5k loan on a $10k vehicle...

It was enough for me to never do business with them again. They weren't going to issue a loan that only made them $250 in profit...
 
2016-07-14 6:35:42 PM  

chicken nugger: sdd2000: Don't feel bad credit karma says that I need to have more credit accounts to up my score. Thankfully I have an open line of credit with my bank that I can tap as needed that is at 3 month Libor +1.75% so I am getting a kick out of all this.

Credit scores are so weird.  Mine has recently dropped 6 points to 807 when there has been absolutely no change to my situation other than making a payment or two.


Your credit score is based on who calculates it. Credit Karma gives you a credit score based on THEIR calculations. A mortgage company would give you a completely different credit score because their formula is different reflective of what they value in a debtor.
 
2016-07-14 6:37:57 PM  

Geotpf: RexTalionis: And I like to keep it that way -  by never getting to the point where they charge me interest.

Thread over in one.


Technically he does know.
 
2016-07-14 6:38:50 PM  

Madman drummers bummers: 1. As someone else pointed out, debit cards lack the fraud and purchase protection of credit cards. You get bad charges on a debit card, you're screwed. You get bad charges on a credit card, you're out maybe $50. Maybe nothing.


Visa and Mastercard debit cards have the exact same fraud protections as Visa and Mastercard credit cards. If your account is hit by fraud, you have zero liability.

3. Last I heard, it costs merchants more to run a debit card than a credit card, so it sucks for merchants, and for everyone else when they have to raise prices to compensate.

Wrong. Debit cards are cheaper for merchants than credit cards. Federal law caps debit card swipe fees at $.21 per transaction. Credit cards have no cap and usually charge 2% - 3% of the amount. Merchants have to raise prices to compensate for you using your credit card.

http://www.creditcards.com/credit-card-news/debit_card-versus-credit_​c​ard-retailers-bankers-payment-choices-1271.php
 
2016-07-14 6:41:29 PM  

jaylectricity: Your credit score is based on who calculates it. Credit Karma gives you a credit score based on THEIR calculations.


Credit Karma gives you your scored from Equifax and Transunion.  They are the very same scores a lender would receive when requesting a report.
 
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