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He's saying that you could make $7 by investing your cash for 30days before paying the charge card.
by tamana 11y ago
He's saying that you could make $7 by investing your cash for 30days before paying the charge card.
- pessimizer 11y agoYou could lose a lot more than $7 by being a day late, and labor in maintaining a credit card has to be worth more than $7 a month.
- ethbro 11y agoCeteris paribus, the time value of money is a valid consideration. Not sure you read through the entire link and thought about how it applies to both sides of a lending transaction. You may have reasons to disregard it personally, but in an equal comparison being able to spend $X and paying $X Y days from now is strictly preferable to paying $X today. It's essentially the bedrock of the modern financial system.
- matwood 11y agoLabor? My credit card auto-pays in full each month. For that I get use of someone else's money, points and cash back, and additional warranties. It is no extra work for me, and actually has less stress because if a bad charge does come through the money will never leave my account. If you use a debit card now and are use to paying in full you are leaving literally hundreds, if not thousands of dollars per year on the table in free money by not using a credit card.