3 ms·

>I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in

>I have never used a credit card when living in Europe, it was a debit card... but it is effectively debited at the end of the month only. So you have to pay in full at the end of the month. This is pretty much how the high tier credit cards work in the US (or atleast how the people who own them say they work). The CSR has some insane 28% APR, way higher than Chase's mid tier card. Amex's premium cards (Gold, Platinum) also work the same way. In your case, what happens when you don't have enough money at the end of the month? You are effectively in debt.

llsf 6y ago
Yes, you are in debt. Depending on your bank, your history with the bank, and the amount owed, it can go from nothing, to triggering a penalty, or an immediate freeze of all your bank accounts (across all banks/institutions in the country). The whole freeze happened to me (not my fault), it is pretty impressive. All debit/credit cards are rejected immediately, you better have some spare... and visit the bank that issued the asset freeze and fix it. So, yeah, you learn quickly to not over spend.
josh3736 6y ago
Not sure where you got your APR info, but it is not correct. CSR's advertised APR[1] is 17% to 24%, which of course varies based on your credit history. I checked my own account and see my CSR's APR is 16%, and it's sometimes possible to get a decrease if you ask. (To compare, I also have a Freedom, the mid-tier card, at 15% and the Amazon card at 18.25%.) I also have an Amex, which is nominally a charge card, but they are now functionally no different than a credit card. It has an 18.25% APR for the "Pay Over Time" balance. Of course, none of this really matters if you're using the cards responsibly, because you pay the statement balance in full every month. The grace period means there is no interest at all. No credit card has a good interest rate (outside of promos), and if you need to borrow money, there are better ways of doing it. Any credit card should be treated like a charge card or debit card. Don't spend more than you have, put it on auto pay, zero interest is charged, your bank account is debited once a month, and along the way you collect lucrative rewards and get better fraud protection and fringe benefits. (Admittedly, this all assumes that you can qualify for a decent card and can use it responsibly, which sadly the majority of Americans cannot.) 1. https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&page_type=appterms https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&p...

llsf 6y ago

Yes, you are in debt. Depending on your bank, your history with the bank, and the amount owed, it can go from nothing, to triggering a penalty, or an immediate freeze of all your bank accounts (across all banks/institutions in the country). The whole freeze happened to me (not my fault), it is pretty impressive. All debit/credit cards are rejected immediately, you better have some spare... and visit the bank that issued the asset freeze and fix it. So, yeah, you learn quickly to not over spend.

josh3736 6y ago

Not sure where you got your APR info, but it is not correct. CSR's advertised APR[1] is 17% to 24%, which of course varies based on your credit history. I checked my own account and see my CSR's APR is 16%, and it's sometimes possible to get a decrease if you ask. (To compare, I also have a Freedom, the mid-tier card, at 15% and the Amazon card at 18.25%.) I also have an Amex, which is nominally a charge card, but they are now functionally no different than a credit card. It has an 18.25% APR for the "Pay Over Time" balance. Of course, none of this really matters if you're using the cards responsibly, because you pay the statement balance in full every month. The grace period means there is no interest at all. No credit card has a good interest rate (outside of promos), and if you need to borrow money, there are better ways of doing it. Any credit card should be treated like a charge card or debit card. Don't spend more than you have, put it on auto pay, zero interest is charged, your bank account is debited once a month, and along the way you collect lucrative rewards and get better fraud protection and fringe benefits. (Admittedly, this all assumes that you can qualify for a decent card and can use it responsibly, which sadly the majority of Americans cannot.) 1. https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&page_type=appterms https://applynow.chase.com/FlexAppWeb/pricing.do?card=G3L2&p...