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Consumers prefer to use credit cards, for many reasons one of which is points.
by darkestloud 7y ago
Consumers prefer to use credit cards, for many reasons one of which is points.
- philipov 7y ago> one of which is points Citation needed. I hate points.
- the_jeremy 7y agoRewards would have been a more general term that still captures the meaning. I get a flat 2% back on literal everything. I agree that points would be a pain, but extra cash is nice. (I know this functionally means everything is x% more expensive, something something tragedy of the commons externalities blah blah blah.)
- philipov 7y ago> I know this functionally means everything is x% more expensive Exactly! I hate all rewards systems because they wouldn't be offering it if it weren't a scam. If you don't know who the fish is, it's you.
- mkozlows 7y agoThe "scam" is on everyone who doesn't have a rewards card. The increased interchange fees are shared by everyone, with reward card users reaping the benefit.
- mjevans 7y agoYeah, I use Costco's "Citi Visa" card for exactly that reason. I'd still be charged the %, and at least this way I get the most useful thing /for me/ back as a reward. That's the why I want a system that completely bypasses the insanity that are current credit/debit cards and goes directly to a modern approach (but isn't some blockchain, kill the planet with mining power, fad).
- victor106 7y agoI wonder which card gives you this benefit?
- the_jeremy 7y agociti double cash back or something like that
- icedchai 7y agoYou hate free money? Points are exactly that, as long as you pay off your credit card every month.
- jeromegv 7y agoThe point is at that all merchant end up adding the 3% in their margin so what you buy is more expensive. You just lose if you don’t use points but, you aren’t actually gaining anything.
- icedchai 7y agoYou're contradicting yourself. Since everyone is paying that extra 3%, by not getting the rewards / points you're at a disadvantage.
- philipov 7y agoNo, it's you who, by supporting their toxic industry, are making things worse for everyone. c.f. Tragedy of the Commons. What you're advocating is a slave mentality.
- icedchai 7y agoThe people paying ~20% interest are slaves. For some, they have no choice and I sympathize with those. I pay off my bill every month. I pay no interest, no fees, and get free stuff for it. You should do the same.
- orthecreedence 7y agoIt's not free. They take the enormous margin they get off the sellers and kick you back a few peanuts. Essentially, the sellers pay a tax, and you get a small distribution of the tax, and as a result all products are more expensive. Points are useless.
- icedchai 7y ago
- hartator 7y agoAnd protections.
- abalone 7y agoFalse. More Americans use debit than credit for everyday purchases.[1] [1] https://www.nerdwallet.com/blog/credit-cards/credit-debit-survey-2017/ https://www.nerdwallet.com/blog/credit-cards/credit-debit-su...
- icedchai 7y agoMost Americans are also financially illiterate. For every day purchases (not cash advances), it is always better to use a credit card that offers rewards points... as long as you plan on paying off your full balance every month. It's free money, period.
- awad 7y agoThat's something only the minority of the population does, though. "...average individual credit card debt stands at $5,331 in 2019. Additionally, on a monthly basis, most Americans don't pay their credit card balance in full every month - 55% don't regularly pay in full." https://www.thestreet.com/personal-finance/credit-cards/average-credit-card-debt-14863601 https://www.thestreet.com/personal-finance/credit-cards/aver...
- masonic 7y agoForgive me if I don't take a blog quoting "CreditDonkey.com" as its only source very seriously on this.
- woah 7y agoIt’s like the mirror image of gambling. You get a little money constantly and if you are (un)lucky, you lose a lot. I’m not really interested in playing someone’s rigged financial game for chump change.
- icedchai 7y agoNot really. Assuming you never over extend yourself by spending more than you have, you never lose anything.