Credit Cards: Evil or just Mismanaged?

[poundwise]

Ha... I knew that title would get you to click on my post...

The quick answer, of course, is both and yet at the same time, neither.

Credit card companies do some 'evil' things. The fine print is often clearly laden with 'evil' intentions. They tell you one thing on the phone when another is true. Or they do one thing while telling you something else. I believe the customer service reps are purposefully given false and misleading info to give out to people sometimes.

However, if you did a survey on the forum, one which asked which credit card issuers are good and which are 'evil' I bet the response would go something like this...

Oh I love my Chase card but MBNA sucks.

MBNA is fine, I've had one for years with no problems. I hate Capital One though.

Chase is terrible.

Bank of America is the best. Chase is ok. MBNA is terrible.

What? Bank of America sucks!!! What's wrong with Capital One though? I have a card and everything has always been cool.

And... so on...

I believe this to be true and think most of you will concur. So why is this the case?

I believe it is because people do not manage their credit properly. They miss a payment, make a late payment, go over the limit, etc. and then get mad at a card company for doing exactly what the 'evil' fine print said they would do. That company then becomes the enemy. It seems to me, in most (not all) instances, if you manage your credit well with these companies, then you typically will have no problems and can enjoy the use of credit as well as associated perks. However, as soon as you mess up, then the company turns 'evil.'

Partly this is perception. Partly is because card companies can be schizo. Best friends one day, worst enemies the next. Still, I can't help but think that an honest assesment would show that most of the time, people have ill will toward a specific credit card company due to their own poor handling of their account.

Of course, I still wouldn't turn my back on any of them.

After all, they are 'evil' you know.

[b4freedom]

Re: Credit Cards: Evil or just Mismanaged?

Pure evil. But, sometimes dancing with the devil can be rewarding.

[Ima saver]

Re: Credit Cards: Evil or just Mismanaged?

I have had credit cards for about 40 years. I have never paid late, never gone over the limit and have never had trouble with any credit card company. I just go with the companies that will give me some cash back. I pay the cards in full each month.

[autoxer]

Re: Credit Cards: Evil or just Mismanaged?

They are evil for taking advantage of our mismanagement.

[Ima saver]

Re: Credit Cards: Evil or just Mismanaged?

I have never mismanaged my credit cards.

[autoxer]

Re: Credit Cards: Evil or just Mismanaged?

I have.

[Ima saver]

Re: Credit Cards: Evil or just Mismanaged?

Looks like you figured out how to manage them now!![Automated by GetSmile]

[lrjohnson]

Re: Credit Cards: Evil or just Mismanaged?

I have severe reservations about any business that is rewarded by personal bungling. There are a few businesses that use a combination of poor judgement and poverty to make earn some of their profits: payday loans, rent to own furniture, some "no credit" auto dealerships, some credit cards.
I absolutely understand that a lot of peoples problems result from personal choices. I also think that some people have less ability to sort though these things. Some of us have been born with smarts or good looks or privileged parents or access to a good education or good health. We can damage or misuse what we are born with but we have them. A lot of people may not have been as lucky to be born with the skills to navigate corporations or bureaucracy. It's not even a basic intelligence thing; it's a specialized common sense form of intelligence. And I don't like companies that profit from those that don't have or cultivate that form of smarts.

[katwoman]

Re: Credit Cards: Evil or just Mismanaged?

I would use the word misunderstanding when it comes to credit cards.

Once their methods are understood, it's easy to use them to your advantage and keep from misusing. Except, of course, when dealing with the evil issuers like Capital One. What is evil about Cap One? How about calling to cancel their card and them suspending statements which means you miss a payment!

Yes, that actually happened and they were sued for it. The word evil definately applies.

[poundwise]

Re: Credit Cards: Evil or just Mismanaged?


And thus the point is proven.

[annscash]

Re: Credit Cards: Evil or just Mismanaged?

Credit Cards and their issuers are not evil. Folks are responsible for learning and understanding the rules for using a CC and they are responsible for using them wisely.

I have no debt. Years ago I began using a CC for nearly all purchases because of the rewards programs. If they want to give me money to use their card, I will take it. If merchants want to give me a discount for using cash, I would use cash.

I started out using credit wisely.
I got caught up in credit card balances that never ended. I had an income of $14,000 a year and $4,000 in credit card debt.
I went on a debt starvation diet and paid it all off.
I hadn't quite learned my lession and got my balances back up to about $1,200.
I went back on that debt starvation diet and paid them off for good.
In 15 years I have only once failed to PIF and that time I had a few hundred that I PIFed the very next month.
Then I paid off my car.
Now even my house is paid off.
Just last week $103.00 was deposited to my MM as a reward for using my CC.

The one thing where CC companies are really wrong is giving credit so frequently to people who are already in debt beyond their income. It doesn't sound like good business to me.

[JoyJoy]

Re: Credit Cards: Evil or just Mismanaged?

Very well done annscash! Debt starvation diet works for a friend of mine too! He had been using the cards for rewards and cash returns, but he found he was running up his balances and some months couldn't PIF. To date he hardly ever uses a CC unless he is caught without the extra cash and then he will go home and write out a check immediately for the expenditure and mail it. It's amazing how one can enjoy their hobbies more and the simple things of life when they make a concerted effort to stop shopping all the time and get out of debt. I applaud you!!

[JoyJoy]

Re: Credit Cards: Evil or just Mismanaged?

I feel credit cards are lifesavers when managed well. My hubby emptied his wallet yesterday and put his cards away. He said he's on a cash diet. I admire him because he will succeed.

[Broken Arrow]

Re: Credit Cards: Evil or just Mismanaged?

I'm back on credit cards after years of hiatus. This time though, I'm going through with an iron-clad budgeting, and am determined to carry no balance.

[JoyJoy]

Re: Credit Cards: Evil or just Mismanaged?

I'm back on credit cards after years of hiatus. This time though, I'm going through with an iron-clad budgeting, and am determined to carry no balance.

WTG Broken Arrow! That's determination for ya!