Comments on: 10 Reasons Credit Cards Are Good http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/ Your Money. Your Career. Your Life. Thu, 20 Nov 2008 16:52:39 +0000 http://wordpress.org/?v=abc By: 25 Reasons to Love Credit Cards http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-8031 25 Reasons to Love Credit Cards Fri, 02 May 2008 14:38:23 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-8031 [...] at Cash Money Life debated Ana previously. Patrick had some additional points including short term loans and extended [...] [...] at Cash Money Life debated Ana previously. Patrick had some additional points including short term loans and extended [...]

]]> By: Patrick http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-6663 Patrick Tue, 25 Mar 2008 02:45:51 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-6663 Dan, Yes, the fee does get passed to the customer. In fact, some stores refuse credit cards as a way to keep down costs, or they will offer a discount for people who pay cash. But, if you are one of those people who use cash back or other rewards cards, you now know where your reward is coming from. Transaction fees of 3% or the norm and cash back rewards of 1% are common. That still leaves a healthy cut for the credit card company. Dan, Yes, the fee does get passed to the customer. In fact, some stores refuse credit cards as a way to keep down costs, or they will offer a discount for people who pay cash. But, if you are one of those people who use cash back or other rewards cards, you now know where your reward is coming from. Transaction fees of 3% or the norm and cash back rewards of 1% are common. That still leaves a healthy cut for the credit card company.

]]> By: Dan http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-6651 Dan Mon, 24 Mar 2008 18:20:34 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-6651 Patrick, I agree wholeheartedly with your article above. However, I'm wondering about one potential drawback to using credit cards that nobody has mentioned at this point: When a purchase is made with a credit card, the credit card company assesses a percentage fee to the merchant/service provider. Doesn't this fee get transferred to the end consumer in the form of higher prices? So using a credit card contributes to inflation of goods and services. That said, I still use my plastic for all the reasons mentioned in the article. Patrick, I agree wholeheartedly with your article above.
However, I’m wondering about one potential drawback to using credit cards that nobody has mentioned at this point: When a purchase is made with a credit card, the credit card company assesses a percentage fee to the merchant/service provider. Doesn’t this fee get transferred to the end consumer in the form of higher prices? So using a credit card contributes to inflation of goods and services.
That said, I still use my plastic for all the reasons mentioned in the article.

]]> By: DebtFREE-Revolution » Blog Archive » Credit Cards for Emergencies Revisited http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3711 DebtFREE-Revolution » Blog Archive » Credit Cards for Emergencies Revisited Thu, 10 Jan 2008 20:28:42 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3711 [...] and that was the first time I said I don’t think anyone should have a credit card.  Well Patrick called me out on that statement and we went back and forth a few times before agreeing to disagree.  Although I do love his [...] [...] and that was the first time I said I don’t think anyone should have a credit card.  Well Patrick called me out on that statement and we went back and forth a few times before agreeing to disagree.  Although I do love his [...]

]]> By: Patrick http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3234 Patrick Thu, 20 Dec 2007 04:56:39 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3234 deepali, I admire your views on the social implications of credit cards, and I think there will always be issues with credit cards, credit card companies, and just about every major corporation. I also think an entire book could be written on the subject! Those topics are very much out of the scope of this blog and my expertise! Thanks for the comment. :) deepali,

I admire your views on the social implications of credit cards, and I think there will always be issues with credit cards, credit card companies, and just about every major corporation. I also think an entire book could be written on the subject! Those topics are very much out of the scope of this blog and my expertise! Thanks for the comment. :)

]]> By: deepali http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3228 deepali Wed, 19 Dec 2007 20:55:28 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-3228 There is a different between "credit" and "credit cards". Microcredit, for example, is a useful tool in the third world, particularly in the hands of a benevolent lender. That is one reason why I like Prosper and Kiva. But one major reason why credit cards are bad - using your credit card perpetuates the cycle of injustice (even if you don't experience any direct harm). For the same ethical reasons I don't eat meat or shop at Wal-Mart, I don't like to use my credit cards: I don't want to buy into the system. That being said, not all credit card companies are bad. I am really impressed with American Express, for example - they make a concerted effort to take care of their customers. There is a different between “credit” and “credit cards”. Microcredit, for example, is a useful tool in the third world, particularly in the hands of a benevolent lender. That is one reason why I like Prosper and Kiva.

But one major reason why credit cards are bad - using your credit card perpetuates the cycle of injustice (even if you don’t experience any direct harm). For the same ethical reasons I don’t eat meat or shop at Wal-Mart, I don’t like to use my credit cards: I don’t want to buy into the system.

That being said, not all credit card companies are bad. I am really impressed with American Express, for example - they make a concerted effort to take care of their customers.

]]> By: Patrick http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-2657 Patrick Sun, 25 Nov 2007 13:53:54 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-2657 David, that is a great idea, and something a lot of people do on a regular basis. In fact, this is basically what people do with credit card arbitrage, and borrow money on an introductory 0% offer, then stick in an interest bearing account and slowly pay it back - the whole time earning interest! David, that is a great idea, and something a lot of people do on a regular basis. In fact, this is basically what people do with credit card arbitrage, and borrow money on an introductory 0% offer, then stick in an interest bearing account and slowly pay it back - the whole time earning interest!

]]> By: David http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-2656 David Sun, 25 Nov 2007 03:39:51 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-2656 Some people will go as far to say they will only pay cash. But what if your money is earning 5% interest and you can finance at 2.5%? Lets use an example. You have 100K earning 5% and want to buy a vehicle for 30K. Do you pull the 30K (which is earning 5% out and buy the car cash) Why not leave the 30k earning 5% so you can finance 30K on the vehicle at 2.5% which nets you a positive 2.5% on that 30k until the vehicle is paid for. Some people will go as far to say they will only pay cash. But what if your money is earning 5% interest and you can finance at 2.5%? Lets use an example.

You have 100K earning 5% and want to buy a vehicle for 30K. Do you pull the 30K (which is earning 5% out and buy the car cash)

Why not leave the 30k earning 5% so you can finance 30K on the vehicle at 2.5% which nets you a positive 2.5% on that 30k until the vehicle is paid for.

]]> By: Benefits of credit card http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-1548 Benefits of credit card Sat, 29 Sep 2007 08:20:59 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-1548 I read all the 10 reasons and agree that credit card benefits in the times of emergencies. I met with many incidents where credit card benefited me lot. I read all the 10 reasons and agree that credit card benefits in the times of emergencies. I met with many incidents where credit card benefited me lot.

]]> By: kitty http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-1352 kitty Wed, 19 Sep 2007 01:18:37 +0000 http://cashmoneylife.com/2007/09/14/10-reasons-credit-cards-are-good/#comment-1352 <i>I actually find the idea that “no one should use credit cards” to be deeply offensive.</i> Me too. Especially because I am older and have used credit cards for over 20 years without ever carrying a balance. I do understand where Ana is coming from - some people may indeed be better off without credit cards at least until they learn to live within their means and get a very clear idea of what they can or cannot afford. Let's not forget that more than third of credit card users pay their balances in full every month. This is a lot of people. Also statistics like "an average American is $X in debt" is misleading: one person with huge debt is enough to affect this statistics for a lot of people. Kevin, in terms of fraud, while you may have no problems with cash, if you use a debit card and your number is stolen, the protection provided by credit cards is much stronger. Even when debit cards provide some protection, while your complaint is being investigated the money are taken from your account whereas with credit cards the disputed amount is in "limbo". If someone uses your stolen debit card number and takes $1000 or more from your checking at around the time when your (automatic) mortgage payment is due, and you don't notice the theft right away, you may have problems. With credit cards, the money are still in the bank. I actually find the idea that “no one should use credit cards” to be deeply offensive.
Me too. Especially because I am older and have used credit cards for over 20 years without ever carrying a balance. I do understand where Ana is coming from - some people may indeed be better off without credit cards at least until they learn to live within their means and get a very clear idea of what they can or cannot afford. Let’s not forget that more than third of credit card users pay their balances in full every month. This is a lot of people. Also statistics like “an average American is $X in debt” is misleading: one person with huge debt is enough to affect this statistics for a lot of people.

Kevin, in terms of fraud, while you may have no problems with cash, if you use a debit card and your number is stolen, the protection provided by credit cards is much stronger. Even when debit cards provide some protection, while your complaint is being investigated the money are taken from your account whereas with credit cards the disputed amount is in “limbo”. If someone uses your stolen debit card number and takes $1000 or more from your checking at around the time when your (automatic) mortgage payment is due, and you don’t notice the theft right away, you may have problems. With credit cards, the money are still in the bank.

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