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They aren't being punished by not using credit cards, they're just choosing not to avail themselves of the benefits of using credit cards. If you pay your bill
by ImPostingOnHN 6y ago
They aren't being punished by not using credit cards, they're just choosing not to avail themselves of the benefits of using credit cards.
If you pay your bill every month, then a credit card is like a debit card plus benefits like up to 20% of the purchase value in points, not to mention benefiting from the time value of money.
- watwut 6y agoCredit score matters for whole host of things like when you want to buy a house. So yes, you are penalized for not having it. > benefiting from the time value of money This is just nonsense. There is no additional gain from waiting till end of month till you pay.
- ImPostingOnHN 6y agoI'm sorry, my post must have given the impression that I was talking about credit scores instead of credit cards, which is what I was talking about. As for your other point, if there were no benefit from floating money for 2 months, then there'd be no benefit from doing that an indefinite number of times, which conflicts with the time value of money, an established, mathematically basic concept.