Always use Master Card

[Dr. Shane]

They offer those things so that you will use the card more, in hopes that you will slip up and charge up a balance you can't pay in full.

That is part of it but not the complete story. Credit card companies give things away for the same reason a homeowner places good cheese on a mouse trap.

This is how it works:

Retailers must pay credit card companies a fee every time a card is used. That fee will be between 1% and 5% depending on the agreement between the retailer and the card company. Bigger retailers get better deals. The "free" stuff given to the credit card users is paid for with these fees. Sounds great, right?

Well, now let's employ some common sense. Why would a retailer agree to pay a credit card company 1% - 5% of their gross sales purchased by credit cards? Why wouldn't these retailers charge 1% - 5% more to those using these credit cards? The answer is volume. Yes volume. The retailers make up that 1% - 5% in volume. How do they do that? People using credit cards to make purchases spend more. It is indisputable. Retailers, creditors and consumer groups all agree on the data that shows those using credit cards buy more stuff. Those using credit cards spend more than those using debit cards and those using debit cards spend more than those using cash or writing checks.

For those wanting to really be good stewards with their money, buying with cash is the best. Studies show the brain activity that takes place when we spend cash is the same activity that takes place when we experience pain. That doesn't happen when we use a credit or debit card. Because carrying large sums of cash is not always safe, the second best way is to write checks and always (without exception) record the check in the ledger immediately after writing it and balance the checkbook everyday.

Statistically the person buying with cash will spend less money each year than the "rewards" are worth that the credit card user is getting. So the guy getting "rewards" thinks he or she is getting something for free while the guy buying with cash actually comes out ahead.

They use to say a sucker was born every day but when we look at the number of people falling for the credit card schemes I think we have to conclude that its got to be more than one a day.

[Dr. Shane]

They use to say a sucker was born every day but when we look at the number of people falling for the credit card schemes I think we have to conclude that its got to be more than one a day.

I speak from experience. Been there. Done that. So if this description hits a little too close to home to some readers... well... I've been there myself and way too long. I am not trying to insult anyone, any more than I am insulting myself too.

[LynnDel]

I am disappointed with my credit card company, because I like to keep my credit limit low, in case someone else tries to use it. I recently got notice (and I don't understand why) that they upped my limit -- enough for me to buy a nice new car with it if I so choose. I won't, and I am not pleased. I called and they said they could not change it. I may just cancel the card and get a new one with a low limit.

LD

[LynnDel]

Shane, are you a Dave Ramsey fan?

LD

[Dr. Shane]

Shane, are you a Dave Ramsey fan?

LD

Indeed but also of Crown Financial Ministries. I don't know if our church has an official doctrine on it but from what I understand our church's position is that the only time we should borrow money, as individuals, is to buy a house or get an education.

I only make a habit of using my debit card for things I cannot use cash or checks for like paying bills online, renting a car, reserving a hotel room, etc.

[GreatLakesGramma]

What you say is true Shane.

But I am not much of a consumer. I hate shopping. I procrastinate about leaving for town on grocery day more than anything else I have to do. And when I do go, I get it all done and get back home as quickly as possible. I don't buy anything except what's on my list, regardless of what I pay with. I won't even put anything on my list that isn't groceries unless I've thought about it for weeks or even months first, or else it's something inexpensive or really necessary. Even with a credit card, if I get to the store and find something on sale I've had on my "get someday" list for a long time, I have a huge struggle to make myself actually buy it. After all, we've managed without it ever since it got on the list, and I hate spending money on anything that isn't an absolute necessity.

If I were any different, I would not be carrying a credit card. But since I do have to spend money, I'd rather get a little of it back from the credit card company, and leave our money in the bank earning interest for a little longer.

[GreatLakesGramma]

I am disappointed with my credit card company, because I like to keep my credit limit low, in case someone else tries to use it. I recently got notice (and I don't understand why) that they upped my limit -- enough for me to buy a nice new car with it if I so choose. I won't, and I am not pleased. I called and they said they could not change it. I may just cancel the card and get a new one with a low limit.

LD

I'd cancel it if I were you. The reason they do that is because they want to entice you to spend more than you can pay back. Credit card companies hate people who pay their balances every month. They call us deadbeats.

[LynnDel]

Quote:

Credit card companies hate people who pay their balances every month. They call us deadbeats.

I've been that kind of deadbeat for years. Maybe they're hoping the economy will force me to start spending thousands and I'll only be able to pay it back slowly. Vain hope, I'd say.

LD

[Dr. Shane]

If your credit rating means something to you I would see what the increased line of credit has done to your score.

[Amelia]

Visa debit rocks

We rock to the same tune.

[Anthony!]

But it is OK for you to profit from other people's credit card mistakes and from Credit Card Company usery of excessive fees, etc? Why would anyone want to do business with people like that?

Originally Posted By: Redwood

or some people who can't handle paying their bills each month ... a credit card it not wise.

My secretary made a mistake once and ended up writing her check for her credit card payment fourteen cents too short. That error of hers ended up costing her nearly $30. Yes, because she shorted them fourteen cents. She cought it the day her payment was due (she had already mailed the check) She called to see if she could pay the fourteen cents over the phone or online and the credit card company said no.

Credit card companies make their money off from interests, dues and penalties. They are not a group of nice people looking to lend a helping hand. They issue cards in hopes that the card holders will make mistakes so they can be charged extra interest, fees and penalties. Why would anyone want to do business with people like that?

I do not have a credit card because I refuse to pay a credit card company one penny in interest, dues, fees or penalties. I do, however, own stock in a credit card company they pay me dividends. That is the relationship I like.