I found a couple of interesting posts that each argue their side of the story. It started with Free From Broke decreeing that “Credit Cards Suck,” and response from I pick up Pennies “Credit Cards Don’t Suck“. Both make interesting arguments for having or abstaining from having credit cards. Both writers have been shaped by their experiences.
FFB says that you are lured and “tricked” into signing up for credit cards in college. They also charge you outrageous interest and allow you to spend money you don’t have. Or that you sign up for the 0% interest credit card to buy a fridge but don’t realize if you don’t pay it off the interest will be added on the balance in month 13! He says they give away free goods to get you to sign up, if that isn’t unfair what is?
IPUP argues that people should read the terms and conditions of credit cards. And even if they don’t, how hard is it to realize that credit cards are not free money? That they have to be paid back at some point? She makes the argument people who get angry at credit cards about interest, are “ENTITLED BRATS.” The same entitlement feelings that lead them into debt, is why they are angry. They feel they deserve special treatment (no interest) or better and it’s the credit card company’s fault instead of their own. And people should own up that they chose to sign up for credit cards.
Like I’ve said before, you’ll have to pry my credit card out of my cold, dead hands. I’ll likely pay for my cremation on a credit card. So I’m a credit card fan, I earn so much rewards in one year it’s ridiculous, around $2k last year. I don’t pay interest and never had any problems with credit cards or overspending.
But how do I view credit cards for most people? I like it to smoking, gambling, guns, and alcohol. It can be fun but it can also be hurtful. It depends on how you use them. I think that like all those other habits, people have to take responsibility.
If you are a gambled, going to Gamblers Anonymous and staying away from Las Vegas is IMPORTANT. Or an alcoholic, going to AA and staying away from bars. Or even guns. I think they can be fun to participate in shooting practice or sport, but you have to know how to use a gun instead of buying one and leaving it in an unlocked bedside drawer.
It’s not credit cards like booze or guns that hurt people. It’s the person hurting themselves. Perhaps the same people who think credit cards suck, think I’m terrible person for drinking. Or the smoker sitting next to them is an awful person. Maybe so. But it’s not the cigarette or liquor’s fault it’s mine.
Do you think Credit Cards Suck?
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9 responses so far ↓
1 FB @ FabulouslyBroke.com // May 6, 2009 at 9:58 am
Credit cards don’t suck. People who use them irresponsibly suck.
The cards didn’t get up and walk to the store and buy items in your size and colour for you
But it’s never one-way. Credit card companies can suck too.
I use my cards all the time for the points. I have almost enough for $20 worth of groceries and I haven’t paid a penny in interest in 8 years.
2 LAL // May 6, 2009 at 10:16 am
I still think it’s like an addiction.
3 Meg from FruWiki // May 6, 2009 at 10:56 am
Yes and no. Credit card companies suck and people suck at using credit cards. But, on the other hand, I do think they can be useful, even though the risks often far outweigh the benefits.
As it’s been shown again and again, people spend more when using credit cards — and trust me, those reward points aren’t there to help you save money. If saving money is your top priority, then ditch the cards, at least for everyday use.
There are some times when I do like using credit cards. The extended warranties and return policies built into some accounts is really nice. We’re getting the money back for a sink we bought a year ago because after only a year it looks like absolute crap and the sink company will only replace it with the same crappy model. Thank you Amex for something, finally!
However, I much prefer to use debit cards for everyday purposes and avoid the hassle of credit cards unless I really, really want buying protection. As my husband and I have learned, you can have an excellent credit score and history and the card companies will STILL try to screw you over. Gah! Whatever happened to customer service?!
4 JoeP // May 6, 2009 at 11:30 am
I enjoy the convenience of a credit card, but don’t like it when credit card companies change the terms without notice.
For responsible consumers, credit cards are free. The cost of operating is paid for by people who use credit cards for cash advances, or for purchases they cannot pay for before a service charge kicks in. (Although, technically, the costs of credit card processing is built into the operating costs of retailers.)
5 tom // May 6, 2009 at 12:43 pm
I do not think they suck, because they pay me
I do not think this bill of rights will help anyone who pays off their balances each month. I’m willing to bet we’ll see reward program reductions… in fact, the AmEx Blue Cash card is already starting to reduce their percentages.
6 LAL // May 8, 2009 at 8:22 pm
It’s a lot easier to blame credit card companies and banks than to take responsibility that you spent $x on something you couldn’t afford. CC are like mortgages you can’t afford.
Some people know what they can afford others don’t. Yet it’s easier to say banks and CC are bad than admit being wrong.
7 fengshui // May 12, 2009 at 11:00 pm
I don’t use credit cards for any “points” or rewards”, but rather because I needed them from time to time during my extended time as a student. I’ve put major car repairs, vet bills, dental visits (I have no dental insurance), and sometimes gas or food if things are really tight. They have been helpful to me. I do pay interest on them from time to time, but generally try to pay them off as soon as I can. Now that I’m done with school for awhile, I plan to pay off what balances I do have left.
I do think that the fees are getting ridiculous. $39 for a late fee? wtf? ridiculous. And jacking up the rate even if you pay on time every month, simply because they run a soft credit check on you and see that one of your other credit cards is maxed. I think that crap should be stopped. But, it won’t.
8 eemusings // May 14, 2009 at 6:00 am
I love CCs. Well, the one that I do have
I probably wouldn’t ever have more than two because I might have trouble tracking multiple cards. But I am pretty organised and obsessive about the accounts that I currently have, which is why CC works for me.
BF on the other hand NEEDS a cash system. Money just flows off cards in his hands…he can’t keep track of anything. But apparently having the physical notes and coins does the trick and I’m really proud that he’s learned to handle his weekly lunch/fun money and not always run out before the end of the week!
9 LAL // May 20, 2009 at 10:19 pm
Fengshui, i think that some people do use credit cards as they are starting out and gaining traction. Maybe part of it is also getting a handle on finances period. Starting out can be tough.
Eemusings, I can’t tell you what I blew $40 this month in cash on honestly. I spent $8 today on lunch, but the rest? Geez.
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