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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



Voting Results (Smartest)
View Voting Results: Smartest and Funniest

 
2016-07-13 8:59:16 PM  
57 votes:
And I like to keep it that way -  by never getting to the point where they charge me interest.
 
2016-07-13 9:23:19 PM  
15 votes:

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.
 
2016-07-14 12:19:39 AM  
8 votes:

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.


Third.

I can't remember the last time I carried a balance.

I'm not wealthy by any stretch of the imagination. Not even close. I just know my fiscal limitations and live within my means.
 
2016-07-13 10:21:01 PM  
8 votes:
zero interest - I pay off the balance every month
 
2016-07-13 10:10:58 PM  
8 votes:
THIS JUST IN: Americans suck at personal finance.
 
2016-07-14 1:08:58 AM  
6 votes:
"What good is math to me?", they say...

TwowheelinTim: The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.


Yeah. Paid off my mortgage, paid off & canceled my credit cards, and my reward? A lowered credit score, because, hey, I clearly won't make a bank any money if they give me a line of credit. Never mind that I have an 80+ spread between credit scores depending on which agency I ask, or that one agency still thinks I work at CIGNA, a company at which I haven't worked in 18 goddamned years.

No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.
 
2016-07-14 8:37:39 AM  
4 votes:
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.
 
2016-07-14 1:11:29 AM  
4 votes:

FormlessOne: "What good is math to me?", they say...

TwowheelinTim: The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.

Yeah. Paid off my mortgage, paid off & canceled my credit cards, and my reward? A lowered credit score, because, hey, I clearly won't make a bank any money if they give me a line of credit. Never mind that I have an 80+ spread between credit scores depending on which agency I ask, or that one agency still thinks I work at CIGNA, a company at which I haven't worked in 18 goddamned years.

No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.


welltheresyourproblem.jpg
 
2016-07-14 12:54:08 AM  
4 votes:
About 10 years ago, I got a letter from Citibank informing me that my interest rate was going from 8.9% to 12.9%, despite me never having carried a balance or missed a payment. I informed  that No, it wouldn't be and cancelled my card.

/ Discover has better reward points anyway
// as does BAC
 
2016-07-14 12:36:17 AM  
4 votes:
The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.
 
2016-07-13 10:31:39 PM  
4 votes:
I dont know and no, i dont pay mine off every month.    *shrugs*
 
2016-07-14 12:43:40 PM  
3 votes:

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 9:54:04 AM  
3 votes:

Madman drummers bummers: 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.


Pretty sure that one's backwards. I remember when gas stations (which are extremely low-margin on the actual gasoline) used to charge extra for credit cards over debit until they were barred from doing so by law - and as soon as the law was changed to let them do it again, they did.

Rest is pretty much spot-on though.
 
2016-07-14 8:14:33 AM  
3 votes:

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

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


Credit cards have rewards, and also give you a month to review and dispute charges before paying. With debit card fraud, the money is gone right away and you have to fight to get it back.

Again, all of that is still within usage where you pay it off on time and don't pay any interest. So debit has no advantage whatsoever, unless your self-control is so nonexistent that you need to bump against an overdrawn warning to know when you're past your means.
 
2016-07-14 1:34:21 AM  
3 votes:

gunsmack: FDR Jones: I don't carry a balance, but I also don't live a lifestyle that is prone to huge surprise bills, i.e., no house, car, kids, etc. No medical issues. I'm also liquid AF because I keep way more money in my checking account than is necessary.

Liquidity is nice, but checking pays less interest than stuffing it under your mattress. Grab a few CDs (which don't pay much more) or bonds if you have a surplus.


I used to do CD ladders: get a 3-month, a 6-month, a 9-month if you can get it, a 1-year, and so on. Every time one of them matures, buy the longest-term one you can get with the proceeds. You're never more than 3 months away from a maturity if you have an emergency (loss of job, hospital bills, that sort of thing), and you're generally getting more interest than with a savings account.

I quit doing that when CD rates dropped to "are you farking kidding me" levels. Bonds might be the way to go with that sort of thing now, but I don't know much about the bond market.

It's not easy to find safe places to stash bucks and still beat inflation, anymore. The powers that be are, intentionally or not, encouraging debt and spending rather than saving. And most of the people are more than happy to oblige.
 
2016-07-14 1:15:20 AM  
3 votes:

FormlessOne: "What good is math to me?", they say...

TwowheelinTim: The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.

Yeah. Paid off my mortgage, paid off & canceled my credit cards, and my reward? A lowered credit score, because, hey, I clearly won't make a bank any money if they give me a line of credit. Never mind that I have an 80+ spread between credit scores depending on which agency I ask, or that one agency still thinks I work at CIGNA, a company at which I haven't worked in 18 goddamned years.

No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.


If you don't have any debt and aren't planning on getting any, why would you know/care what your credit score was?
 
2016-07-14 1:08:00 AM  
3 votes:
ProTip:  Regard your "credit card" as a time-delayed debit card (payoff every month), and your interest rate is always zero (unless you're a chump and take a cash advance, of course).
 
2016-07-14 12:38:58 AM  
3 votes:

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.


I don't know if this is still the case, but Capital One used to be a credit-repair card. If you had no or poor credit history, C1 would give you a card anyway (aka "enough rope to hang yourself.") They made up for all the resulting defaults by charging more vig than Antonio down on the corner, though without the threat of damage to your patellae.

So they probably think that once they have you as a customer victim, they can jack up your rates because you can't get worthwhile credit limits anywhere else. Sometimes, they're wrong about that.
 
2016-07-14 12:37:02 AM  
3 votes:
Online banking is the sh*t. I pay off my card pretty much every other day rather than a check to pay the bill at the end of the month like we all did prior to the internet age. It also means I can keep track of my balance at a moment's notice instead of suffering the occasional sticker shock of a snail-mailed monthly bill.

Not to mention, seeing my balance on demand keeps me honest about staying within my means and tempering any purchases so I don't accumulate a sizeable debt. The result is I haven't carried a monthly balance for years now.

/CSB
 
2016-07-14 12:35:32 AM  
3 votes:
0%

It is the interest I pay.  Of course I pay my balance off in full every month.
 
2016-07-14 12:20:29 AM  
3 votes:
Just pay it off every month.
 
2016-07-14 12:19:53 AM  
3 votes:
It's not that we don't know by accidental ignorance.
We DON'T WANT to know.
It's intentional ignorance.
 
2016-07-13 11:24:42 PM  
3 votes:
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.
 
2016-07-14 11:11:57 AM  
2 votes:

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 11:06:26 AM  
2 votes:

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 9:47:23 AM  
2 votes:

Mr_Fabulous: I used to float a balance for one billing period, once in a while, then pay it off in full. That actually helps your credit rating.


No it doesn't, and even if it did, there is almost no circumstance where the help would be worth paying interest for.
 
2016-07-14 9:25:02 AM  
2 votes:
FTA:
"If you take out a $1000 loan that has a 20% rate, how much will you owe a year in interest?"

This is a stupid question with no one correct answer.
 
2016-07-14 9:23:00 AM  
2 votes:

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.


I thought that was funny too. In general I love the idea of writing "quick!" in front of a question like that. What is this, a child's frisbee that just flew out in front of your car? No, it's a farking loan. Calm the fark down and open a spreadsheet.
 
2016-07-14 8:39:50 AM  
2 votes:

usafdave: Wow, based on this thread, every Farker out there is a slice of the most responsible life.  (I sound like I have crippling debt... no, but I do have sharp knees).

/one 15 year old credit card
//balance is higher than I'd like but 8.9%, thanks USAA
///don't get engaged... but certainly don't get married (whew)
////slashies like slashing that debt... 7 months to go


People who have a job where they can spend all day on Fark probably meet certain demographic criteria.
 
2016-07-14 8:08:10 AM  
2 votes:
I do, 0% because I have no credit cards, and plan on keeping it that way.  I recall a Farker saying he never seen a credit cardless person with a score above 700.  Um, my score is in the high 600s right now, and even if I don't cross over the 700 line, it's still the highest my score has ever been, even back when I had cards.
 
2016-07-14 3:44:20 AM  
2 votes:

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

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


Some do, but debit cards in the US aren't always chipped. Credit cards usually offer better protection. My parents have been the victims of identity theft a few times and the CC company was right on top of things.

Since I use their address for US recordkeeping purposes, even though I've been a dual citizen living abroad since 1994, CC offers continue to come to me at their house. 30% interest or more. 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?
 
2016-07-14 3:24:27 AM  
2 votes:
TFA: Just 28% knew what happens to bond prices when interest rates fall. (They rise.)

Ok, sorry.  I consider myself an intelligent person, and I could handle some of those crazy EVE Online spreadsheets if I wanted, but what do bond prices have to do with "Financial Literacy"?  I might have gotten that question wrong if I'd be asked cold-turkey.

Bond prices are a vagary of the stock market responding to less profitable lending.  It has no relevancy to most people except that they're considered to be "safer" ways of storing money.  You can't fail 75% of people on "Financial Knowledge" for not consciously knowing that fact.
 
2016-07-14 3:13:13 AM  
2 votes:

snowjack: jtown: chicken nugger: Sure I do, it's 7.50%, the lowest rate of any card around.

[snert]  5.65% here.

Which is actually a little annoying.  I checked to be sure before bragging and it changed on the first statement of the year.  It was 5.40% for a long time.  So I guess the headline was right.  I mean I knew it was a variable rate in the mid 5% range but I haven't bothered to check in ages because I haven't carried a balance in years.  So I guess the article was right.  I didn't know.

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.


Sure, I could fake it but I didn't.  Started out as 9.90 fixed back in the late 90s then they changed it to a variable rate tied to some complicated formula which caused it to plummet.  This is cropped from a recent statement.

img.fark.netView Full Size
 
2016-07-14 1:54:57 AM  
2 votes:

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.

I didn't get to be good with finances overnight. I've been in debt to my ears. It was the work I did getting out of debt that made me good with finances.

It's like if you're a smoker, and you want to quit. Ask a lifelong non-smoker and they're like "Why don't you just quit?" Ask a former smoker and they'll go something like "Well, first, let's identify your triggers..."
 
2016-07-14 1:20:50 AM  
2 votes:

jjorsett: Hey, aren't European banks now paying negative interest rates? Could I get a credit card from one of them and get paid to carry a big balance?


Sure. If you're a bank. Or a government.
 
2016-07-14 12:50:44 AM  
2 votes:

themindiswatching: Satanic_Hamster: Just pay it off every month.

Wait. You're telling me that the card I got in the mail isn't free money? That's crazy talk.


Well, it is if you do the points/cash back right.

Back in the 90's, my dad put all of me and my sisters tuition on his Chevrolet Visa.  Ended up getting an insane amount off his next car.
 
2016-07-14 12:49:49 AM  
2 votes:

snowjack: 7.15% biatcheeees
https://www.becu.org/everyday-banking/credit-cards

:-)


Variable rate.....lol
 
2016-07-14 12:25:04 AM  
2 votes:

Satanic_Hamster: Just pay it off every month.


Wait. You're telling me that the card I got in the mail isn't free money? That's crazy talk.
 
2016-07-13 11:57:18 PM  
2 votes:

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.


You wait til the due date? Are you poor? I pay mine off weekly.

/kidding about the poor thing
 
2016-07-13 10:32:49 PM  
2 votes:
Or you could, you know, pay of your Dog Damned credit cards.

/ sometimes, I think that some people need minders
 
2016-07-14 6:41:29 PM  
1 vote:

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.
 
2016-07-14 3:09:06 PM  
1 vote:

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 2:45:17 PM  
1 vote:

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 12:35:26 PM  
1 vote:

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 12:15:54 PM  
1 vote:

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 11:48:33 AM  
1 vote:

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 11:27:17 AM  
1 vote:

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 10:46:25 AM  
1 vote:
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 10:45:24 AM  
1 vote:
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 10:35:41 AM  
1 vote:

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 10:33:04 AM  
1 vote:

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 10:27:30 AM  
1 vote:

Moopy Mac: FTA:
"If you take out a $1000 loan that has a 20% rate, how much will you owe a year in interest?"

This is a stupid question with no one correct answer.


Janet Yellen?  That you?
 
2016-07-14 10:22:30 AM  
1 vote:

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

Capital one was my first CC.

$300 limit.

I would mail my check to them the DAY I got the bill, but they wouldn't apply payment until due day. Sometimes that meant they listed my payment as late, and applied a $25 late fee. That $25 would sometimes put me over my limit, so they'd charge me a $25 over-the-limit fee.

I had to start paying for Return Receipt (I think? The green slips...) to prove they were the ones messing up, but they wanted me to send them my original receipt, not a copy. So I did, with a return receipt. They "lost" it.

I asked them to raise my limit, but they refused.

Eventually I got a new card from MBNA (at a Trek convention, of all places) for 5 times the limit and cancelled them, never to look back.

/they were all to happy to try to raise my limit when I called to cancel
//couldn't match MBNA
///Cancelled that card when Bank of America bought them out


I have a capital one card and I noticed that it was auto-filling in the payment date for the credit card due date instead of the current date.

Online payments had a 3 day processing time...
 
2016-07-14 10:16:19 AM  
1 vote:
img.fark.netView Full Size
 
2016-07-14 9:54:39 AM  
1 vote:

FormlessOne: algrant33: FormlessOne: "What good is math to me?", they say...

TwowheelinTim: The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.

Yeah. Paid off my mortgage, paid off & canceled my credit cards, and my reward? A lowered credit score, because, hey, I clearly won't make a bank any money if they give me a line of credit. Never mind that I have an 80+ spread between credit scores depending on which agency I ask, or that one agency still thinks I work at CIGNA, a company at which I haven't worked in 18 goddamned years.

No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.

welltheresyourproblem.jpg

That's exactly it, though. Keep in mind that I have a "good" score (between 700 and 750) - my credit's not terrible - but it's ridiculous that one of the things that's dragging it down is the fact that I only have 5 open & closed accounts, total. That's considered "very poor."

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.

The important bit is how much credit you have available compared to how much you actually use. Keep a credit card or two open and don't use it, or pay off the balance every month, and your score will go up.
 
2016-07-14 9:49:15 AM  
1 vote:
I got fired, got upside down on credit cards, my life was a country song for about two years.  Paid all that off.

It wasn't just interest on the cards that kills you, certain cards (Discover) charge fees for holding a balance on top of interest.  So my minimum payment of $200, got eaten up by $160 in interest and fees.  It's total usury.

Glad to out from under that yoke.
 
2016-07-14 9:12:04 AM  
1 vote:

eKonk: It's really not actually free, as the money comes from somewhere - cash back from the credit card comes from the vendors that allow you to use the credit card, and those vendors have to build the fees into their prices. In effect, you have to pay more, and a portion of that purchase price comes back to you.


Or maybe they take it from the extra fees charged to the merchants for using debit cards.

Yes, I know there's no such thing as a free lunch, but I used shorthand for "I would have paid the same amount with cash or a debit card or a check (whatever that is), and this way I get cash back." It's still better for me than giving the banks "free" money in the form of fees or interest rates that work out to prime +20%.

eKonk: We might be better off if everyone stopped using credit cards, but unless everyone else does it would be dumb for me to quit.


Exactly. As long as the system exists, I'll take advantage of it. Switch to a different system, and I'll take advantage of that, too. I wouldn't *not* take advantage of it any more than I'd fail to itemize my deductions on the principle that "the US needs the extra tax revenue."
 
2016-07-14 6:13:14 AM  
1 vote:
It doesn't matter, because I fully pay off my bill every month.
 
2016-07-14 5:08:43 AM  
1 vote:
According to the article it's not that they don't know what their card's interest rate is, it's that they don't know how to calculate how much money it costs them.  So basically, they suck at math.
 
2016-07-14 4:35:01 AM  
1 vote:

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?


She's certainly capable of deciding what she does and does not want to do. Admittedly not great with finances, but probably not very much worse than most two-legged Americans.
 
2016-07-14 4:05:57 AM  
1 vote:

chicken nugger: jtown: snert]  5.65% here.

Proof bro or I'm calling bullshiat.


Maybe read the rest of the new posts before calling bullshiat, bro.  I have a feeling you wouldn't believe me no matter what I post.  Because, for some reason, I'm compelled to lie about something so meaningless on an anonymous message board.  :rolleyes:
 
2016-07-14 4:00:58 AM  
1 vote:

Harry_Seldon: I lived an extravagant lifestyle funded by credit cards for years. Then I lucked into buying house t just the right time. House prices skyrocketted in SoCal, so I started to use the equity as a piggy bank. Then, my income tripled over the next few years, so I was able to spend more money on credit cards. At one point, I bought a $10k motorcycle on a credit card. I saw the house bubble burst coming, so I sold my house in 2006 for a $250k profit, and paid off my student loans and credit cards, and still walked away with over $100k, so I moved to Portland. I decided to not work for a couple of years, and blew the $100k and ran up another $20k in credit card debt., so I had to get a job.


And what did we learn?
 
2016-07-14 3:54:53 AM  
1 vote:
I cut all mine up and paid them off. Never again.
 
2016-07-14 3:11:10 AM  
1 vote:
Whe the fark don't americans just use debit cards?!

You only spend what you have.
What's not to get?
 
2016-07-14 2:58:12 AM  
1 vote:

wax_on: 13% and it goes up to 24% if I screw up. I usually don't carry a balance but I had a cash squeeze and some expenses at the same time so I've carried a balance for a few months. Paying it down by about 1/4 of the high balance each time but I was happy to have a bit of credit for a while even if I had to pay 40 or 50 bucks for it.


When I was young, I really had no conception how much living in debt cost me, and I had a ton of debt. Then, I got out of debt, and started to build wealth. You start to see what 7-10% year over year looks like, and you realize what that debt actually cost.
 
2016-07-14 2:04:29 AM  
1 vote:
img.fark.netView Full Size
 
2016-07-14 1:54:23 AM  
1 vote:

mcmnky: FormlessOne: "What good is math to me?", they say...

TwowheelinTim: The comments in this thread make it look like the average Farker is fiscally responsible. There are a couple explanations that come to mind, but I'm going with "the average Farker is fiscally responsible". It's good to see you have ignored the lessons and examples your family, friends, and government have been providing all these years.

Yeah. Paid off my mortgage, paid off & canceled my credit cards, and my reward? A lowered credit score, because, hey, I clearly won't make a bank any money if they give me a line of credit. Never mind that I have an 80+ spread between credit scores depending on which agency I ask, or that one agency still thinks I work at CIGNA, a company at which I haven't worked in 18 goddamned years.

No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.

If you don't have any debt and aren't planning on getting any, why would you know/care what your credit score was?


Car insurance to name one thing.
 
2016-07-14 1:41:10 AM  
1 vote:
How is any of this a surprise? Apparently most Americans signed into mortgages without having any idea of what the terms and payment schedules were. There is no limit to most people's fiscal stupidity.

That said, I'm no wizzard, but I manage the bills, mortgage, IRAs and minor investments just fine, so...
 
2016-07-14 1:11:43 AM  
1 vote:

FormlessOne: No, I'm supposed to curate my credit score because it's increasingly used to measure my value as a person, instead of merely indicate how much of a profit margin I'd give a creditor. Fark that.


You sound like a Redditor curating your karma.
 
2016-07-14 12:44:31 AM  
1 vote:
Done in one.

/ two, six and seven
 
2016-07-14 12:30:28 AM  
1 vote:
I was told there would be no math.
 
2016-07-14 12:24:51 AM  
1 vote:
I think the last time I carried a balance was when I was in college and I just HAD to have a Playstation 2, so I put it on the card and paid it off as I could.  With little exception, I think that's the last time, so no, I don't know my card's interest rates, nor do I really care.

My main card pays rewards right into my IRA's, and I have one of the Amazon cards because I spend a good deal there and 3% back is pretty nice.  If I got stuck into having to carry a balance I'd find a good one and roll it over to that.
 
2016-07-13 11:14:47 PM  
1 vote:
Face it, such details most Americans do not find...interesting
 
2016-07-13 10:12:03 PM  
1 vote:
More than Vinnie  on the corner.
 
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