Credit Cards: Evil vs Great

[simpleyme]

it may be petty but most of my cards have high interest rate like 9-12 percent seems like discover is like 19!

I just think I deserve a better rate when I called to try to get my existing cards to lower they wont saying since i do not carry a balance it does not mater ,so if it does not mater why don't they just give me a lower rate? they make nothing off of me at all since they won't give me a better rate

I just think I deserve better , I have cash and savings and have no need for their product whatsoever so I just think they should give me a better rate
maybe my opinion of myself is too high LOL

I will admit I used to use my cards to buy vacation packages paying it off in 2 cycles which was sorta dumb but then my cc went to 2 cycle billing and I quit doing that too ,and 20 or 25 day grace periods , I am sorry I just find the whole thing annoying and worthless LOL

I do like the sounds of this Marriott card Disney Steve talks about ,that sound worth the hassle ,in a few years when we retire me and DH are going to go cross country on our motorcycles and I will revisited CC as they may make more sense then

[sweeps]

Not to defend the CC companies, but they have to charge a higher interest rate than you could get on other loans because they are giving you an on-demand, unsecured line of credit. There is nothing they can repossess if you don't pay. You can simply not pay and other than reporting you to a CRA and pester you with phone calls, there's nothing they can do about it.

This doesn't justify a 25% interest rate. But it does justify, say, a 12% interest rate. Honestly, the interest-free 30-day grace period and the spending rewards the CC companies offer are gifts for those who are responsible with credit -- I gladly accept them.

[simpleyme]

so why not give me a lower rate just to shut me up and then if my borrowing pattern changes just hike my rate up? all they have to do is give me 15 days notice and the change it ,and they will get to charge all the fees to the vendors right now they do not get anything

I do not think any of my 10 or so cards has a 30 day grace period does that still exist?

[sweeps]

Practically all credit cards have a grace period -- assuming you always pay in full. If you don't pay the full balance every month, you're SOL.

[simpleyme]

all my cards have between 20-25 day grace periods last I knew

back in "the day" all cc had 30 day grace periods only 5 dollar late fees that they did not charge unless the payment was REALLY late like a week or more ,not an hour LOL with a 20 day grace period you would end sending 3 payment in a 2 month period
what cards have 30 day grace periods anyone know?

maybe my problem is I am old enough to remember what cc used to be like , and the interest was tax deductible too ;-)

[vsjhoc]

Unfortunately, the grace periods are shrinking. By the time I get my Chase Visa bill, it's due 14 days later. Fortunately, I can see it online before I get it via snail mail.

[sweeps]

Yes, you're correct, the official grace period is shorter than 30 days, but the unofficial grace period is usually longer. I can charge something on the 1st, not get a bill until the 31st, and then the bill isn't due until the 20th of the next month. That's effectively a 50 day grace period.

Back to your original point, yes, CC companies do outrageous things to squeeze as much profit out of the consumer as possible. But show me any company that isn't out to maximize profits at the expense of the consumer. I think cable companies deserve much more consumer wrath than the CC companies do. Did anyone catch the story of the grandma that went into a Comcast office and started swinging a hammer? I wouldn't do that, but I sure know how the lady feels.

[disneysteve]

with a 20 day grace period you would end sending 3 payment in a 2 month period

That isn't true. You still only get one bill per month. You just have a shorter time between the billing date and the payment due date.

You would only have 3 payments in 2 months if they shortened the billing cycle from 30 days to 20 days, not the grace period.

[simpleyme]

sweeps -okay the 50 days make more sense to me


Disney Steve-gotcha I am confusing grace period with billing cycle ;-) totally different things

[tabbycat31]

credit cards are like alcohol. If you have a glass of wine every now and then, it can be good for you.

If you chug a 6 pack on a daily basis, not so good for you.

It depends on the user. What's good for someone is not good for another. One of the things I dislike about DR is that he sees things in very black and white terms, and does not see the shades of gray.

[disneysteve]

With the cost of interest charged on the money involved, a credit card allows the user to revolve their balance amount.

What? Can you explain what you mean?

[shizane101]

Reapting what most people have already said, I think the bottom line is this... If you can pay your credit card off every month, it is advantageous in the following ways:

1. Why not get cash back for purchases you're going to make anyway
2. You build your credit score
3. You have an easy way to keep track of where you spend your money (most credit card companies, if not all, allow you to look at some kind of graph showing you where all your money has gone over the months, years, etc)
4. Finally, let's not forget about convenience

Did I leave anything out?

If you're not paying your cards off every month, forget the points I made above. You're best bet is to stick with cash.

[disneysteve]

Did I leave anything out?

How about safety? I'd much rather walk around with a credit card in my pocket than a wad of cash. And convenience. I never have to go to an ATM to get cash. The limits on my cards are far more than I would ever possibly spend. There is a safety factor there, too, as many people get robbed right after withdrawing cash from an ATM.

ETA: Oops. You mentioned convenience.

[sweeps]

Also regarding safety, you can dispute a charge when the merchant doesn't follow through on the product or service.

[DebbieL]

I love my credit cards. I don't care about the interest rate because I pay in full each month. Costs me nothing, and I get money back at the end of the year. It is an interest free loan for the month. My money earns money in the bank until I have to pay it off. It works for me. I also took a $12,500 offer for a 0.9% card and put that money into my savings account earning interest. I then paid it off a few days before the rate was set to go up.